April 5, 2018, The Financial Commission, a leading independent member-driven external dispute resolution (EDR) organization for international online brokerages that participate in global foreign exchange (forex), derivatives, and cryptocurrency markets, today announced that protection for traders through the Commission’s Compensation Fund will be increased by over 20%.
Having experienced significant growth in 2017, the Commission witnessed an increase in the amount of both compensation sought by and compensation awarded to broker member clients. Indeed, amount of compensations awarded increased exponentially to $1,564,700.00 in 2017, a nearly tenfold rise compared Year-over-Year (YoY) from $157,326 in 2016.
The new compensation amounts will go into effect on Monday, April 9th, 2018 and will be applicable to all complaints filed by clients after this date.
What is the Compensation Fund?
The Compensation Fund acts as an insurance policy for members’ clients. This fund is being held in a separate bank account and be only used should a member refuse to adhere to a judgment from the Financial Commission. The Compensation Fund is financed through the allocation of 10% of the monthly membership dues to the fund.