AFD

The AFD (Association for Forex Dealers) is a self-regulatory organization for forex dealers and brokers operating in Russia. It works alongside the Central Bank of Russia (CBR) to promote fair trading practices and protect the interests of retail traders.

What the AFD Does

As a self-regulatory body, the AFD sets standards its member brokers must follow rather than acting as a government licensing authority. Its stated objectives are enforcing ethical trading practices, protecting trader rights, and fostering a competitive forex market in Russia.

AFD Rules for Member Brokers

Brokers affiliated with the AFD are expected to meet requirements in three areas:

• Compliance: following national and international forex trading laws and regulations.
• Ethical trading practices: the AFD monitors broker conduct to prevent fraudulent or unfair dealing.
• Dispute resolution: the association offers a mechanism for resolving conflicts between traders and brokers.

Limitations of AFD Regulation

Because the AFD is a self-regulatory association rather than a statutory regulator, its oversight differs from bodies like the CBR. This matters most on cross-border issues, where coordinating with regulators in other countries is harder for a national self-regulatory body than for a government authority.