The standard was updated based on proposals by the Association of Forex Dealers in line with Federal Law No. 306-FZ, dated 31 July 2020, which introduces mandatory tests from 1 October 2021. Alongside the additional leverage restrictions this law enacts, the tests are intended to reduce possible losses that newcomers to the forex market may incur.
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 1-3 points, subject to the complexity of the question. To pass the test, the investor must score 13 out of the 15 possible points.
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.
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Central Bank of the Russian Federation published this content on 23 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2021 11:51:04 UTC.
