January 12th, 2021, The Financial Commission announces continued growth in submitted and resolved complaints, as well as compensation awarded to traders for December 2020 as part of its monthly Complaints Digest. The organization recorded a significant increase in resolved complaints, percentage of awarded compensation, and several other key metrics while achieving an average dispute resolution time of just 6.1 days.
Key monthly highlights for December 2020:
- New complaints up 4% to 127 total complaints filed
- Resolved complaints up 83% to 148 month-over-month
- Compensation awarded to traders up 26% month-over-month
- $540,230 sought by traders, down 13% month-over-month
- Average resolution time decreased by 10% to 6.1 days
Month Over Month Comparison
- The Commission experienced a slight increase in newly filed complaints for December 2020 to 127, which represents a 4% rise from November
- The amount of compensation sought by traders was lower in December at $540,230 which is a decrease of 13% from November
- The total amount awarded to traders rose to $9,597 from $7,626 in November
- The average value of complaints filed in December was 17% lower than November at $4,253
- Complaints in December were resolved in 6.1 days on average, which is an improvement of 10% from the previous 6.8 days in November
Global impacts from Covid-19 continued to impact market volatility as investors looked to have embraced equity and shares Contracts for Difference (CFD) trading more so than traditional Forex. Continued interest in trading has supported the demand for dispute resolution services, as highlighted by several key metrics of the Financial Commission, including new complaints filed and total complaints resolved, average complaints values, and non-member compensation sought. While financial-related complaints continued to dominate, non-trading complaints jumped 39%, suggesting investors are having issues outside of traditional trading and funding or withdrawals. At the same time, the Dispute Resolution Committee (DRC) was able to rule a significantly higher number of complaints in favor of traders in December, as cases ruled in favor of clients jumped 100% month-over-month.
About Financial Commission
Founded in 2013, the Financial Commission is a leading independent member-driven external dispute resolution (EDR) organization for international online brokerages, exchanges, and Blockchain firms that participate in global foreign exchange (forex), derivatives, CFD, and digital asset markets.
The Financial Commission provides efficient compliance solutions to its members, alongside its External Dispute Resolution (EDR) mechanism that serves as an effective channel for processing complaints from clients of member firms.
For more information please contact us at [email protected].