January 14th, 2021, The Financial Commission today announces the results of its operations for the previous year with the publication of the 2020 Complaints Summary. The organization achieved record annual growth in key metrics, as well as significant membership expansion during a challenging year impacted by the Covid-19 pandemic while maintaining a quick and efficient average dispute resolution time.
New records set in 2020
- A record 1340 complaints filed – 32% increase YoY
- A record $10.9M sought by all traders – 48% increase YoY
- A record $1,495,474 awarded to traders – 148% increase YoY
Other key metrics & accomplishments in 2020
- $8,812 average complaints value – 20% growth YoY
- $8.1M sought from member brokers – 248% growth YoY
- 31% YoY increase in complaints ruled in favor of traders
- 6.97 days average dispute resolution time – 3% increase from 2019
Annual Complaints Summary
- The Commission experienced another record-setting year in 2020 with traders submitting a record number of complaints and seeking a record amount of compensation while awarding a record amount of compensation to traders and resolving disputes in just 6.97 days on average
- The organization expanded its international presence by 25% as compared to 2019 with the addition of 12 new approved broker members to its membership ranks and certification of a new education provider, while also adding a new member to its Blockchain Association
- New partnerships were formed with industry media and liquidity and pricing providers, including The Industry Spread and Advanced Markets
- The Dispute Resolution Committee was bolstered by two new experts from Europe and Turkey
The Financial Commission mitigated disruptions caused by the global Covid-19 pandemic to continue providing quick and efficient dispute resolution services to traders and broker members in 2020. Market volatility events during the last year, including those in oil, gold, and equities markets provided for a hefty amount of new complaints for the organization and led to new records in operational metrics.
The organization further expanded in the Middle East, with several new Turkish broker members, as well as the addition of a Turkish expert on the Dispute Resolution Committee. The organization’s free dispute resolution service to traders gained popularity in Asia, the Middle East, and Africa with new complaints from these regions growing 202%, 15%, and 14% respectively in 2020. The Financial Commission also saw a 17% decrease in complaints from Russia and former Soviet republics, as local market restrictions impeded the normal online trading operations FX and CFD traders have come to expect.
The majority of complaints in 2020 were related to financial issues with 55% of the total, while trading related disputes accounted for 25%. The most popular topics for complaints dealt with funds withdrawal (31%), agreement breach (17%), price check (14%), and account blocking (6%). Of all resolved complaints, 52% were resolved “in favor of the broker” and 18% resolved “in favor of the client”, while 30% were found to be outside the organization’s jurisdiction.
Heading into 2021, the Financial Commission sees continued global challenges from the Covid-19 pandemic, as well as political instability in the US as having a substantial impact on market prices and volatility in the near term and expects to continue to see elevated numbers of new complaints submitted by traders in 1Q 2021.
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].