The Financial Commission outlined the key points for retaining clients of Forex companies at the iFX Expo 2014. Speaking at a panel dedicated to dispute resolution between clients and brokerages, Managing Director, Konstantin Koltsov has reported on the performance of Finacom in 2013-2014 and highlighted key points for future development of the Financial Commission, elaborating on client retention solutions.
For brokers attending the panel, the key issue has been client retention. As the firms are providing their clients with access to trading the foreign exchange market, the regulatory relationship between brokers and traders is of vital importance. The Financial Commission offers its neutral third party expertise and a resolution mechanism which allows traders and brokers to settle disputes.
Most traders who have had a negative experience with their brokerage would consider switching to another company. Traders are easily convinced that their former provider has not been serving their best interests and jump ship to the competition. By nurturing an appropriate relationship between clients and brokers, the Financial Commission provides a resolution to almost all issues, including IT related problems, which many traditional regulators prefer not to deal with. In the end, the client has an independent and professional body which guarantees his protection, while the brokerage retains its traders for the long run.
The Commission has detailed two ways in which Finacom achieves client retention:
- Unlike traditional regulators, Finacom relies on the industry’s best practice standards and provides a full analysis of every dispute in a transparent way. The practice has no competitors on the market.
- Accepting the services of the Financial Commission reduces the risk that a client would file a complaint with official regulators. In the highly competitive Forex market environment, a broker’s reputation is an indispensable asset which can easily be affected by dissatisfied traders who turn to regulators to settle their disputes.
Finacom was created to resolve publicly displayed disputes and bring a professional approach to the marketplace. One of the key objectives of the organization is to track negative noise and to find a quick solution through the Finacom platform. The Financial Commission has the ability to find an acceptable resolution for both brokers and traders in any grey area, where official rules and regulations are not applicable. To support this statement and satisfy traders’ demands, Finacom introduced an insurance and compensation fund for clients of the Financial Commission’s members, which is offering a key competitive advantage for the associated companies.
Underlining the results of the iFX Expo panel, Commission’s Chairman Peter Tatarnikov, stated: “We should outline that the industry is striving for a sustainable, cost-effective and low risk solution, as traders and brokers prefer a swift and effective dispute resolution methodology, which will not interfere with their trading. I personally received many questions from both sides of the isle. As a result, the Commission will further emphasize not only on catering to the needs of brokerages, but will also deliver security and confidence to the traders of our members.”
For more information, please contact The Financial Commission – [email protected] or by phone +1-212-392-0106