Operations in the Forex currency market are risky, but with a successful combination of circumstances, they promise high profits. It is for this reason that trading foreign exchange through computer terminals is gaining more and more popularity around the world. Certain states impose restrictions on such transactions, taking care of protecting clients of the foreign exchange market from fraudsters. Ukraine is one of these countries.
Features of the Forex market
The international Forex market practically has no state borders, because the user can make exchange operations and actually make money from anywhere in the world. However, access to the foreign exchange market is carried out through intermediary companies, which are called brokerage companies. A distinctive feature of brokers operating on the territory of the former Soviet Union is the lack of transparency in the conclusion of transactions.
The high profitability of foreign exchange transactions is combined with a whole range of financial risks. The main danger for a trader is that, with a lack of experience and without a proven trading strategy, he can incorrectly assess the market situation and make wrong actions. Just one mistake in the absence of a risk insurance system can lead to a complete and irrevocable loss of all invested funds.
Unfortunately, unscrupulous brokers in pursuit of clients keep silent about the fact that working in the Forex market is associated with high risks.
In recent years, a lot of intermediary structures have appeared in Russia and Ukraine, which supposedly give clients access to the international currency market, but in fact are so-called "kitchen" brokerage houses, in which all transactions are made only between the company's clients. Dealing with such an unscrupulous broker, it is very easy not only not to earn anything, but also to lose all investments, without knowing what the real Forex market is.
The fight against fictitious "brokers" is the function of the state and is part of the policy to ensure the financial security of the country.
Ukraine has taken seriously the Forex market
In August 2012, the National Bank of Ukraine adopted a regulation, according to which a special procedure was introduced to carry out transactions for the non-cash purchase and sale of currency. According to the decree, operations of this kind, which include currency trading on the Forex market, can henceforth be carried out only by a strictly defined circle of commercial banking institutions that have taken care of obtaining a license from a financial regulator.
Practically all enterprises that previously provided brokerage services fall under this decree. Previously, such intermediary activity did not require any permits or licenses, and therefore was not controlled by the state structures of Ukraine.
The introduction of the regulation on exchange transactions doomed to extinction a significant segment of the financial services market, which had previously developed completely spontaneously.
Financial experts consider the actions of the National Bank of Ukraine completely justified, since the introduced restrictions objectively help to restore order in the foreign exchange market and protect citizens from unfair actions of semi-legal structures, whose main concern was the pursuit of gullible customers and their savings.
