Accounts of foreign brokers illegal in Turkey

The adjusting screw is once again tightened for the Turkish Forex market. The Capital Markets Board (CMB) has issued a new directive that makes it impossible for Turkish residents to have accounts with foreign FX brokers. But there is an exception.

Gradually but firmly

This year, CMB has already taken decisive action in relation to CFD and Forex leveraged instruments on the Turkish market. Two months ago, it was decided to limit the leverage to 1: 10 and establish a minimum deposit for customers on 50 000 TRY (about 14 000 USD). The changes were implemented virtually overnight, which meant that global brands such as Saxo Bank or XTB have withdrawn from the Turkish market.

The closure of the branch in Turkey, however, did not stop the brokers from accepting local residents as their clients. Accounts could still be opened on "non-Turkish" terms avoiding the newly introduced rules. According to the current guidelines, the lack of a CMB license meant that it was not possible to conduct marketing and sales activities or to have a physical branch in Turkey.

"No" to foreign entities

A new directive published today in the Turkish Government's Official Gazette contains a letter signed by anyone other than Presi- dent Recep Tayyip Erdoğan, informing that Turkish residents can use the services of brokers only with a CMB license. This means that there is no way to circumvent the regulations both by foreign entities and by the Turks themselves, who will no longer open an account with external companies.