Unqualified investor testing for forex market: basic standard
The Bank of Russia has approved the updated basic standard for the protection of the rights and interests of forex dealers, which includes procedures for testing unqualified investors before they can conduct trades in the market.
The standard was updated based on proposals by the Association of Forex Dealers in line with Federal Law No.
There are two blocks in the questionnaire. Three questions in the Self-assessment Block are intended to clarify investor experience and the source of their competencies. Responses to these questions do not affect test results, yet they help investors adequately assess their preparedness to conduct trades.
Block 2 is titled Competencies and includes seven questions about the specifics and risks of trades. Each correct answer brings
Testing is free. For each forex dealer, one-time test is sufficient unless the contract says otherwise. The standard allows an unlimited number of attempts to pass the test.
Similar testing rules were previously in place for brokers’ clients. Unlike those, forex dealer tests do not allow exceptions for those failing to qualify (the right to the last word, i.e. the right to trade in amounts up to 100 thousand rubles or one lot / security upwards of 100 thousand rubles). The rule is grounded in very high risks for forex market players, particularly entry-level investors.