The FinancialThe Financial Commission today announces the results of its operations for the previous year with the publication of the 2024 Complaints Summary. The forum achieved mixed results in key operating metrics for the year with notable growth in several areas, including the percentage of amounts awarded to traders, as well as complaints values during the year, while continued improvements in streamlining complaints submissions at member firms contributed to a decrease in overall complaints filed and resolved throughout the year.
The forum also experienced record membership growth with 16 broker members joining the ranks in key regions. The forum also continued to protect traders from the continued rise of online scams by including over 150 new websites on its Warning List.
The forum’s Dispute Resolution Committee (DRC) was bolstered with the appointment of Ms. Opal Yang, Founder and CEO of New Direction Solution. Ms. Yang is the 36th member industry expert to join the Financial Commission’s DRC since its inception in 2013.
Key highlights & accomplishments from 2024:
- $14.9M sought from all brokers – 38% decline YoY
- $8.3M sought from non-member firms – 27% growth YoY
- $534K awarded to traders – 32% decline YoY
- $9,112 average complaints value – 23% growth YoY
Other key metrics 2024
- New & resolved complaints – 32% decline YoY
- Share of HNW ($10K+) complaints – 4% growth YoY
- 5.6 days average dispute resolution time – 18% faster YoY
- Over 150 scam websites added to Warning List
Annual Complaints Summary
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Key Takeaways
- The Commission experienced another successful year in operation with over 1,400 complaints processed in 2024 with average complaints values continuing to rise.
- The forum’s continued efforts to further streamline complaint submissions and improve workflows with member firms once again led to a decline in newly 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 over $10K, which rose 4% year over year.
- In addition, in holding firm to its core principle of objective and neutral dispute resolution to protect traders, the share of complaints ruled in favor of traders in the past year held steady when compared to 2023 at 10% of all resolved complaints.
- Average dispute resolution times improved in 2024, with complaints being processed efficiently in just 5.6 days on average.
- The organization expanded its international presence by 30% as compared to 2023 with the addition of 16 new approved broker members to its ranks.
- To combat online scams and fraud, the organization added over 150 websites to its Warning List in 2024 and published several public warnings regarding clone websites and fake representatives.
Conclusions
The Financial Commission continued to build on its already quick and efficient dispute resolution services for traders and broker members in 2024. Shifting demand for safe-haven assets, such as gold, and continued geopolitical uncertainty provided for continued interest in online trading, leading to an increase in the share of trading-related complaints for 2024. Improvements in streamlining complaints submission processes with broker members led to a decrease of 32% in overall complaints filed during the year with the share of non-trading complaints falling 7% 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 and MENA regions. The organization’s free dispute resolution service to traders continued to be popular in Asia and the Middle East, with 44% and 23% of new complaints coming from these regions, respectively. Notably, the EDR forum gained further popularity in Europe, with a 10% share of new complaints last year, representing 4% growth in this region. Demand for services among traders in African countries held steady at 5% of all processed complaints last year.
The majority of complaints in 2024 were related to financial issues with 54% of the total, while trading-related disputes accounted for 24% and non-trading-related complaints 22%. The most popular topics for complaints dealt with funds withdrawal (47%), account block (19%), price check (8%), platform issues (5%), and stop-out orders (3%). Of all resolved complaints, 27% were resolved “in favor of the broker”, 11% were resolved “in favor of the client”, and 62% were found to be outside the organization’s jurisdiction. The share of complaints resolved in favor of traders in 2024 was approximately the same as in the previous year.
Heading into 2025, the Financial Commission expects to see continued global demand for trading and investing, particularly among younger traders, with continued interest in gold and equities products 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.
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