The RAFMM which stands for the Russian Association of Financial Markets Members which describes itself as a noncommercial organization which was founded for the purpose of strengthening the basis of civilized interrelations between all domestic participants of the international financial markets, the trading volume increase of the Russian financial market segment, the rise of the deals’ profitability and safety, as well as every possible assistance to the development process of the international financial centre in Russia. For this goals achievement the RAFMM, as official partnership of the financial markets companies-participants, uses a voluntary certification and licensing of its participants, as mutually advantageous confidence and partnership system.
RAFMM is it really a regulatory authority?
Sounds good? Well once you cut through all the jargon, trust me it doesn’t sound quite as good. Essentially the RAFMM is an organization set up by a number of trading sites and investment companies, in order to give their sites a certain air of legitimacy. While it might be true that the organization is noncommercial, the organization is non governmental meaning that the sites that are part of the association receive no governmental regulatory oversight. Just look at the extremely small membership list with only four members being listed, two Forex trading sites and two investment companies. It is also unclear whether the Association is even based in Russia with the two Forex trading sites both based in tax havens.
According to reports complaints made to the RAFMM about members are then simply referred back to the organization in question. This hardly represents a tough regulatory environment for these sites and organizations to operate in and essentially allows them to get away with whatever them deem fit. I would never personally put money into an account with one the members organizations of the RAFMM as it appears that the organization has simply been created for the benefits of it’s members.
Not everyone who has had dealings with sites who are members of the RAFMM have had bad experiences, but there are many complaints surrounding the dealings of its members. It is my personal opinion that opening a real money account with one their member sites is taking a huge a risk one I personally wouldn’t dream of taking.