The Financial Commission, a leading independent, non-governmental self-regulatory organization and external dispute resolution (EDR) forum, announces increases in several key operational metrics, including amounts awarded to traders, and trade-related complaints as part of its quarterly Complaints Digest. The organization also recorded quicker dispute resolution times, with complaints being resolved on average in 7.1 days.
As part of its founding core principles to protect traders from possible scams, Ponzi schemes, and fraudulent activities online, The Financial Commission placed 38 websites on its Warning List and identified and issued public warnings regarding clone websites and fake representatives.
Key highlights for 3Q 2023 vs. 2Q 2023:
- New filed complaints remained steady
- Compensation sought from all brokers decreased 66% to $4.4M*
- Compensation awarded to traders increased 56% to $331K
- Trading-related complaints increased 7%
- Average resolution times improved by 12% to 7.1 days
*Values impacted by several high-value complaints resolved during the previous quarter
- Steady QoQ inbound new complaints
- Substantial rise in amounts awarded to traders
- Increase in share of trading & non-trading complaints
- Rise in high-value complaints categories
- Complaints resolution times improved
The Financial Commission continued to experience a steady influx of complaints from traders amid a continued period of range-bound price volatility and high-interest rates. Specifically, the organization experienced virtually no material change in new complaints filed, as well as in the total number of complaints resolved in the quarter. Nonetheless, complaints amounts sought and awarded, as well as average complaint values changed significantly due to several high-value complaints resolved during the previous quarter. In this regard, the total amounts sought from traders equaled $4.4M for the quarter, 66% lower than 2Q 2023. At the same time, amounts awarded to traders experienced a significant jump to $331,809. Complaints with higher values also experienced significant increases, with complaints valued between $1K-10K jumping 141% QoQ and those valued at $10K+ rising 29%.
There was also a noticeable increase in the complaints topics for the period, with increases in trading-related (7% QoQ) and non-trading-related (4% QoQ) complaints, which indicate that traders are continuing to find trading opportunities, even in possible narrow price ranges in FX and CFD markets.
During the period, the Dispute Resolution Committee (DRC) managed to accumulate 17% fewer complaint investigations carrying over into 3Q, while experiencing an improvement in average resolution times.
About Financial Commission
The Financial Commission is an independent external dispute resolution (EDR) organization for consumers/traders who are unable to resolve disputes directly with their financial services providers who are members of the Financial Commission. The Financial Commission initially set out to provide a new approach for traders and brokers alike to resolve any issues that arise in the course of trading electronic markets such as Foreign Exchange, and then expanded into CFDs and related derivatives, in addition to certifying technology platforms used for trading.
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