Against the background of growing interest in investing in securities, many people are asking themselves how to start trading on the Moscow Exchange. The amount of taxes on dividends, strict restrictions on opening and conducting transactions, as well as a large selection of assets can be intimidating and confusing.
We will have to understand how the Moscow Exchange works and how to trade on the Moscow Exchange, as well as what you need to take into account to trade on it.
Moscow Exchange – characteristics and features of trading
Although the Russian stock market has existed for about 30 years, the Moscow Exchange itself appeared only in 2012 after the merger of the largest platforms – RTS and MICEX. The main exchange of the Russian Federation combines 5 main markets, which include currency, commodity, money, derivatives and stock markets.
At the same time, the exchange does not work round the clock – it is important for those who want to learn how to trade on the Moscow Exchange. The main trading session runs from 10:00 to 18:45; the pre-trading and post-trading periods are separate. The platform does not work on weekends, and swaps are charged for the transfer of positions to the next day.
Trading on MICEX – where to start?
You can find a lot of material on the Internet that covers the question ‘how to trade on the Moscow Exchange?’. Videos, books, articles and traders’ reviews sometimes touch only on general concepts. At the same time, the MICEX floor itself offers beginners to trade ‘live’, but without the risk of losing money – for this purpose, you can open a free demo account on the official website with an already available virtual capital of 100,000 rubles.
It is important to remember that an investor needs a broker for real trading. Trading on the Moscow Exchange without a broker is impossible – such priority is given only to legal entities with a special licence and a large charter capital.
How to choose a broker for trading on the Moscow Exchange?
In social networks, users are offered their services by dozens and hundreds of dealers and brokers who supposedly have access to the MICEX. However, you should only trade currencies on the Moscow Exchange with a brokerage company that meets the following criteria:
- Official certification on MICEX – the list of certified intermediaries and brokers holding a licence from the Central Bank of Russia is also listed on the main page of the exchange.
- Suitable trading conditions – to comfortably trade on the Moscow Exchange, a trader must open a suitable tariff plan. The more options a broker offers together with the size of commissions, the better.
- Reputation – to assess the competence and reliability of the broker, it is necessary to study investor reviews devoted to trading on the Moscow Exchange.
Trading on the Moscow Exchange – general recommendations
As boring as it may sound, but the beginning of trading on the Moscow Exchange online is closely associated with the study of the mechanism of the market and asset pricing. A novice investor needs to familiarise himself with the basics of trading, the tools of fundamental and technical analysis, as well as clearly formulate the purpose for which he is going to the exchange.
An honest answer to the questions concerning motives, free time for training and availability of start-up capital will help determine whether it is worth trading on the Moscow Exchange. One should not forget that trading is associated with huge risks, and therefore it is important to be patient, diligent and careful with money.
A patient investor can understand the principle of creating a portfolio on his own, while people who do not have enough free time are better off considering trust management services.
