The Financial Commission today announces the results of its operations for the previous year with the publication of the 2023 Complaints Summary. The forum achieved significant growth in several key metrics, including amounts sought, awarded to traders, as well as complaints values during the year, while improvements in streamlining complaints submissions at member firms contributed to a decrease in overall complaints filed and resolved throughout the year.
The forum also continued to bring on new broker members in key regions, as well as protect traders from the continued rise of online scams during a year of mixed market volatility and expanding geopolitical uncertainty.
Key highlights & accomplishments from 2023:
- $24.2M sought from all brokers – 95% growth YoY
- $783K awarded to traders – 2x+ growth YoY
- $7,399 average complaints value – 70% growth YoY
Other key metrics 2023
- New & resolved complaints – 30% decline YoY
- Complaints ruled in favor of traders – 30% growth YoY
- 6.6 days average dispute resolution time – 18% slower YoY
- Over 100 scam websites added to Warning List
Annual Complaints Summary
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- The Commission experienced another successful year in operation with over 2,000 complaints processed in 2023, which amounts sought, and awarded to traders and average complaints values continued to increase.
- The forum’s efforts to further streamline complaint submissions and improve workflows with member firms also proved successful with an overall decline in new filed complaints during the year, particularly those in the “non-trading” category.
- The Commission also experienced a rise in the value of complaints, both on average, and a significant boost to complaints valued between $1K-10K, which rose 30% year over year.
- In addition, in holding firm to its core principle of objective and neutral dispute resolution to protect traders, the forum was able to rule 30% more complaints in favor of traders in the past year as compared to 2022.
- While no records were set in average dispute resolution times in 2023, the forum continued to process complaints efficiently in just 6.6 days on average during the past year.
- The organization expanded its international presence by 10% as compared to 2022 with the addition of 4 new approved broker members to its ranks.
- To combat online scams and fraud, the organization added over 100 websites to its Warning List during 2023 and published 10 public warnings regarding clone websites and fake representatives.
The Financial Commission continued to improve its already quick and efficient dispute resolution services for traders and broker members in 2023. Shifting global market price volatility and increased geopolitical uncertainty provided for continued interest in online trading, leading to an increase in the share of trading-related complaints for 2023. Improvements in streamlining complaints submission processes with broker members led to a decrease in overall complaints filed during the year with the share of non-trading complaints falling 65% year over year, helping traders get their disputes resolved quickly by their brokers.
The organization further expanded its membership ranks with new members in the Asia region. The organization’s free dispute resolution service to traders continued to be popular in Asia, with 46% of new complaints coming from this region. Notably, the EDR forum gained popularity in the Middle East, with a 24% share of new complaints, and in Latin America, whose share accounted for 10% of complaints in 2023. The Financial Commission also witnessed a 16% increase in complaints from African countries, as retail trading continues to grow in popularity in this region.
The majority of complaints in 2023 were related to financial issues with 49% of the total, while trading-related disputes accounted for 23% and non-trading-related complaints 29%. The most popular topics for complaints dealt with funds withdrawal (41%), account block (24%), price check (11%), platform issues (5%), and stop-out orders (3%). Of all resolved complaints, 32% were resolved “in favor of the broker” 12% were resolved “in favor of the client”, while 56% were found to be outside the organization’s jurisdiction. The share of complaints resolved in favor of traders was 30% higher than in the previous year.
Heading into 2024, the Financial Commission expects to see continued global demand for trading and investing, particularly among younger traders, with fiscal and geopolitical risks impacting the prices of currencies, and commodities, especially gold and equities through the year. In this regard, the organization is prepared to handle a growing number of complaints from traders during the year.
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.
For more information, please contact us at [email protected].