Submit a Request for Certification

Gain more trust from your customers – become a Verified Broker!

Trust and credibility are the main pillars of success for online brokerage firms. Customers need to be confident when choosing a broker. That is why the Financial Commission has partnered with VerifyMyTrade to provide brokers an added layer of transparency by highlighting the quality of trade executions. The simple to use process analyzes historical trade data on a monthly basis to determine satisfactory trade executions overall.

Similar to the “best execution” requirements in major international jurisdictions, the Financial Commission Execution Certification service ensures that customers are receiving fair and transparent pricing and thus complying with the industry accepted best execution standards.

Clients can check their broker’s Order Execution Certification with the Financial Commission on a monthly basis by accessing our website’s Members section. Verified brokers are provided with a unique badge and shield to confirm their ongoing certification, as well as a unique link to display their execution audit results:

Approved member firms of the Financial Commission enjoy a 70% discount for the monthly Execution Certification service fee. Brokers can also sign-up for the Execution Certification service without obtaining a full membership in our organization for a fixed annual fee.

As part of the Financial Commission’s certification process of trading platforms, in order to help ensure that at-a-minimum a basis is established using the criteria listed below, we require applicants submit all requested information as described and any additional that may be asked for.

The Certification process helps ensure that our supervisory responsibilities with regards to the dispute resolution process that the Financial Commission facilitates will remain fair and equitable.

Some items in the following questionnaire below may not apply to you. For example, if the system is hosted on your licensee’s data servers, which you have no control of. Nonetheless, applicants must let us know of such arrangements and provide the Financial Commission with minimum technical requirements to licensee’s infrastructure, as explained in the guidelines below.

In addition to questions, the Financial Commission must review technology providers written procedures to address the security, capacity and integrity of trading, and confirm such procedures are being followed.

Certification Guidelines Questionnaire (To be completed by all applicants):

1. SYSTEM SECURITY

  • Authentication process
  • Firewalls, Data encryption algorithm and suspicious activity monitoring
  • Authorization process
  • Periodic Testing
  • System Administration procedures

2. SYSTEM CAPACITY

  • Server infrastructure and system backup procedures
  • Capacity monitoring procedures
  • Stress-test procedure
  • Software update procedure

3. INSTRUMENTS AND ORDER TYPES

  • All instruments available within platform
  • List all types of orders that are available in the platform.

4. PRICING AND EXECUTION POLICY

  • List of quote-feed providers
  • Can broker set restrictions on trades? If yes, please describe.
  • Does system maintain applied restrictions logs?
  • Can broker adjust the price feed? If yes, please describe who can do so and under which circumstances?
  • Does system has a manual price change/input logs?
  • Does system has “bad print” or “price spike” protection?
  • Can broker set or execute orders on behalf of clients?
  • Does system maintain manual execution logs?

For Binary Options

  • Please provide the options pricing and payout calculation methodology.
  • Do you change the payouts during the option term?
  • Do you change payout terms based on market volatility?
  • Do you provide incentives to trade in a certain direction due to uneven spread of risk at the option expiry date?
  • Does system maintain the logs of payouts change?

5. REPORTING AND RECORD KEEPING

  • System must store tick data for at least 45 days.
  • System must have detailed report on all trades and orders places by the client or by the company on behalf of the client
  • Breakdown procedures that contain responsible employees for major blocks of the system and their main duties.

6. BUSINESS CONTINUITY/ DISASTER RECOVERY PLAN

Financial Commission believes that disaster recovery and business continuity issues are of utmost importance and trading technology providers must take a proactive approach to ensure that they have an adequate disaster recovery plan in place.

Disaster Recovery plan must contain the following information:

  • Backup Facilities
  • Implementation of Disaster Recovery/Business Continuity Plan
  • Disruptions of Third-Parties
  • Annual Testing
  • Communication with the Financial Commission
  • Employee and Emergency Contact Information

Completed answers and requested information to the questions above should be submitted to the certification board of the Financial Commission, either in Microsoft Word Format, or PDF format.

In continuing our mission to create a more credible FX industry overall and specifically helping traders get knowledge and education, the Financial Commission has begun accepting applications from education providers that wish to have their educational offering examined by Financial Commission for the purposes of meeting a set of standards that Financial Commission has developed to ensure traders have access to the best educational materials.

Education providers will be required to provide answers to specific questions designated by the Commission’s Certification Board, including, but not limited to the following:

  1. Material’s author(s)
  2. Author(s) credentials
  3. Materials last updated date
  4. Display of risk loss disclaimers
  5. Number of hypothetical trade examples (total)
  6. Number of hypothetical trade examples resulting in a loss
  7. Number of hypothetical trade examples resulting in a profit
  8. Source of price charts in educational materials
  9. Source of pricing in price charts in educational materials
  10. Price of educational offering (if sold to users)
  11. Whom is the educational offering provided to?

The full list of items will be provided to eligible applicants who submit a formal request to Financial Commission.

In order to initiate the Educational offering certification process, a firm can submit an email request to the Financial Commission where it will be furnished with a certification agreement and list of documents and materials required by the Financial Commission to evaluate the applicant for Educational certification.

Contact us today to certify your educational offering with a respected and independent self-regulatory organization

As part of the Financial Commission’s commitment to transparent and honest trading practices and the growing popularity of Collective Investment Platforms, such as Copy Trading services and percent allocation management modules (PAMM), our organization has developed a certification for such investment technology providers.

By obtaining certification your firm can:

  • Bring additional credibility and trust to your service
  • Attract new customers and authorized traders and increase revenue
  • Mitigate negative feedback and complaints from customers
  • Stand out as a verified and secure investment service provider

The Certification process helps to ensure that investors and traders are operating on a level playing field, with commonly accepted standards for managing and operating collective investment accounts, whether they involve copying trades or investing funds into a managed trading account.

The Collective Investment Platform certification is available to:

  • Copy Trading service providers
  • PAMM investment service providers

To obtain certification collective investment service providers must submit an application and complete a comprehensive questionnaire detailing the key policies and procedures used for investors, authorized traders and copy traders, including

  • Technical setup of investor’s or copy trader’s accounts and their functionality
  • Funds allocation, calculations and trade results reporting procedures
  • Security and KYC policies, including any possible restrictions
  • Policies for rating authorized trader or investor account performance

Following the submission of the application and review of the questionnaire, the Financial Commission may advise the PAMM service provider to implement changes to its policies and procedures in order to obtain certification, if appropriate. Once the Commission is satisfied with all the relevant policies and procedures of the service provider, an official certificate will be issued and published on the Financial Commission website.