National Bank of Georgia

1. Nature of the institution

The National Bank of Georgia (NBG) is the central bank of Georgia, established under the Constitution and governed by the Organic Law of Georgia. It operates independently from the legislative and executive branches of government.

2. History of the organization

Georgia’s first central bank was founded in 1919. The current institution, in its present form, was re-established in 1991 following Georgia’s independence.

3. Regulatory functions

The NBG supervises the financial sector to ensure stability, transparency, and investor protection. It oversees compliance with anti-money laundering and counter-terrorism financing laws, conducts off-site and on-site inspections using a risk-based approach, and regulates payment systems.

4. Scope/Objectives of Regulation

The primary objective of the NBG is to ensure price stability. It implements monetary policy, manages foreign exchange reserves, issues legal tender, maintains financial system stability, and promotes sound financial sector practices. It also produces and disseminates economic statistics in line with international standards.

Regulatory Framework:

Foreign exchange brokers must obtain prior approval from the National Bank of Georgia (NBG) for key service providers (platform, price feed, reinsurer). The NBG enforces compliance through strict operational, reporting, and disclosure requirements.

Fund Isolation:
A brokerage company is obliged to place client funds separately from its own funds on nominal accounts at commercial bank licensed by National Bank, a brokerage company or central depository or a financial institution licensed in the developed countries. No other money other than client funds shall be placed on such nominal accounts.

Report Requirements:
Brokers must submit advertising materials and standard contract changes to the NBG within 5 working days prior to use. Detailed transaction records for each client must be maintained and available upon request.

Leverage Limits:
Maximum leverage is capped at:  
- 1:50 for major currency pairs  
- 1:20 for non-major FX, gold, major indices  
- 1:10 for commodities (excl. gold), minor indices, and shares  
- 1:2 for cryptocurrencies

Capital Requirement:
Brokers must ensure no single client exceeds 25% of their own capital and reinsurance is required if a client’s monthly deposits exceed 5% of the broker’s capital.

Negative Balance Protection:
The company is obliged to ensure that the trading platform does not allow that, the total capital of the client for each client's trading account shall become a negative number.

(Reference: The order №145/04 and N107/04 Of the National Bank of Georgia)

Generally speaking, NBG-regulated broker profile will be found at the List of Licensed Participants page on NBG website. Try to find it and check if it will match the info from the broker website.

The detailed steps are as follows:

1. Go to https://nbg.gov.ge/en and switch the language to English.

2. Click on "Supervision" at the top of the page, then navigate to the "Market Infrastructure and Intermediaries" section.

3. On the left-hand menu, select "List of Licensed Participants".

4. Choose the relevant category for the brokerage firm and review the listed company information.

5. Click on the Contact Information to be redirected to the brokerage’s official website. Verify whether the registered domain matches the platform you wish to check.

When you have disputes with a NBG-regulated broker, you can proceed the following ways:

1st way: Contact a broker

If you are not satisfied with the conduct of the regulated entity, it is recommended first considering contacting the regulated entity directly, for example, under the regulated entity's complaint rules or in the form of a request.

2nd way: Contact the National Bank of Georgia

Additionally, you can also file a claim against a financial institution with the NBG’s Consumer Rights Protection Division through the following channels:

1. In writing. Submitting a Online Claim Form.

2. By Email. E-mail address: cp@nbg.gov.ge
3. Visit to site.
4. Hotline. National Bank of Georgia Hotline: 032 2 406 406
5. Social network.
 

NOTE: A breach by a financial institution of the "Regulation on providing the necessary information by financial institutions to the customers when providing services" may not become a ground for voiding the agreement between you and the bank.

For more information, you may refer to NBC Contact Us Page.