July 27th, 2022, The Financial Commission today announces its operating metrics for the first half of 2022 as part of its ongoing Complaints Digest publications highlighting the organization’s performance. Continued interest in trading among investors has led to a steady rise in some key metrics of the dispute resolution service of the organization, while average dispute resolution times continued to improve. The organization also added 6 new broker members and certified one platform provider during this period.
Key Half Year Highlights (as compared to 2H 2021):
- New resolved complaints up 5% to 1712
- Total compensation sought by traders down 37% to $5.63M
- Compensation sought from members up 26% to $3.57M
- Total amount awarded to traders $98,449
- Average complaints value $3,262
- Average resolution time improved 17% to 5.8 days
A Detailed Summary
Key Takeaways for 1H 2022
- Continued interest in trading financial markets attributed to a rise in filed and resolved complaints of 5% and 6% respectively in the first half of 2022
- The amount of compensation sought by traders totalled over $5.36M and included a large proportion of “non-trading related” disputes resolved by the organization
- Traders were awarded less compensation in the first half of 2022 as compared to 2nd half of last year due to an increased proportion of complaints being ruled as “non-specified”
- The average value of complaints for the first half of 2022 fell to $3,262 with a steady increase of complaints valued up to $100
- Complaints were resolved in 5.8 days on average, which is 17% quicker than in the 2nd half of 2021,which is substantially quicker than other organizations tasked with dispute resolution in the FX & CFD markets.
The Financial Commission continues to effectively resolve traders’ disputes and public inquiries during continued market volatility around the world, with total resolved complaints for the 1st half of 2022 being 6% higher than 2H 2021. The drop in average complaints values and changes in the complaints value categories suggest that many new investors have entered the market on the heels of significant equity and crypto market growth that occurred in the later stages of 2021.
The Dispute Resolution Committee witnessed a rise in compensation sought from member brokers of 26%, indicating the rise in demand for trading services among Financial Commission members, while also experiencing a drop of 66% in compensation sought from non-members, suggesting that warnings and notices issued regularly by the Financial Commission and financial regulators worldwide may be deterring investors from becoming victims of untrustworthy companies and exchanges.
The continued effectiveness of the dispute resolution service is also highlighted by the 12% rise in member complaints for the half year. “Non-trading related” complaints continue to grow with a 5% uptick to 1112 in this time period, highlighting the broad scope of issues experienced by traders today. The highest trending complaints topics included account blocking, withdrawal of funds and price check requests further highlighting the continued interest in trading FX and CFD markets by traders of all experience levels.
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]