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December 26th, 2019, The Financial Commission today announces enhancements to its ‘Check Your Broker’ online directory with the addition of broker profiles. The update is intended to make it easier for traders to find out important information about a broker’s license, membership with the Financial Commission and possible Compensation Fund protections.
Check Your Broker
The ‘Check Your Broker’ directory was launched in April 2019 in order to help traders to find out basic information about their broker, check their broker’s membership status and whether they can use Financial Commission’s services and what companies should be avoided due to reported fraud or misconduct.
Now the directory has been updated with valuable information about non-member firms to help traders check the license and regulatory status of over 200 brokers, as well as find out company details regarding the products and services offered by each broker. Moreover, traders can now leave feedback and share their trading experience on the broker’s profile page and find the contact details for each listed broker in the directory.
The enhancements are intended to help the trading public navigate the FX community to choose the right broker for them, find out about the regulatory and licensing status of their broker or compare reviews and comments from other traders who have had experience trading with one broker or another.
The directory will be updated regularly to include more brokers and inform on the change in the regulatory status of existing firms. If you can’t find your broker in our directory – please contact us at [email protected] to get more information.
About the Financial Commission
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 that are members of the Financial Commission. 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].
Russia’ upper house of Parliament, the Federation Council has passed a new legislation number 607338-7 which requires equities and other financial brokers to adhere to new ‘best practices’ aimed at assisting traders and investors and improving their experience. In some ways, these new measures mimic ESMA rules in Europe, which are already being used for the Forex market.
Specifically, the new measures spell out ‘best execution’ as it is commonly known – requiring brokers to execute the customer’s order at the best available price, with as little cost incurred as possible and by using ‘reliable’ counterparties. In many ways, this is just like the ESMA directives.
The new legislation also sets out limits on the amount of fees that can be collected from traders using ‘auto follow’ techniques or other trade orders used to manage risk or book profits during trading. The legislation also aims to regulate the concept of “internalizing” – when brokers A-book a customer’s orders and take the other side of the trade, while opening mirroring orders elsewhere. The new rules prescribe that all orders, whether internal or external, must be executed as the same order prices.
The new law also requires that brokers provide customers with decision-making tools (such as research or signals) internally and directly to customers, rather than relying on 3rd party services, like today. This may alleviate some of the conflicts of interest that have been identified between retail brokers and 3rd party signals or research firms, who rely on commission from clients’ trading in order to do business.
One of the major developments in the legislation is that by 2021 brokers will be able to accept new forms of collateral from traders in order to satisfy margin requirements. Specifically, traders will be able to use foreign currency, such as USD to satisfy their account’s margin requirements, and also precious metals. Such instruments will be placed in special bank accounts to ensure that a broker will not go after the client in order to recoup any losses incurred while trading.