October 4th 2022, The Financial Commission today announces increases in several key metrics, including amounts sought and awarded to traders, as well as improved dispute resolution times as part of its quarterly Complaints Digest. The organization experienced a rise in new and resolved complaints, amounts sought from non-member brokers, average complaint values and complaints ruled in favor of traders in the 3rd quarter of the year.
Key highlights for 3Q vs. 2Q 2022:
- New filed complaints up by 5%
- Resolved complaints improved by 4%
- Compensation sought from all brokers rose 51%
- Compensation awarded increased 36% to $79,494
- Complaints ruled in favor of traders up 57% QoQ
- Average resolution time improved to 4.6 days
Quarter Over Quarter Comparison
- Healthy uptick in newly filed complaints for 3Q 2022
- Solid growth in compensation sought from all brokers to $3,451,466
- Increase of rulings in favor of clients and total awarded compensation
- Complaints valued between $1-10K increased by 25%
- Complaints resolved in 4.6 days on average, 11% faster QoQ
Renewed focus on forex and derivatives trading following weak cryptocurrency prices among investors impacted several key metrics of the Financial Commission in the third quarter of 2022. Renewed growth in filed and resolved complaints, as well as compensation sought suggest traders may be taking advantage of price volatility on traditional markets in light of the negative impact to such asset classes as digital currencies. In 3Q 2022 the organization also experienced growth of all amounts sought metrics, including total amounts sought and those only attributed to members and non-members. There was a significant change in the complaints topics for the period, with financial complaints rising 54% and non-trading complaints falling by 13% of all new complaints for the period. Complaints listed in the value category $1-10K jumped 25%, highlighting the continued importance of the organization to investigate complaints with higher monetary values. During the quarter, the Dispute Resolution Committee (DRC) accumulated more complaint investigations carrying over into 4Q 2022 due to the complex nature of the dispute subjects, while nonetheless improving already exceptional average resolution times, which still continue to outpace alternative EDR services.
About Financial Commission
The Financial Commission has conducted dispute resolution services specifically for FX and CFD traders and broker member firms since 2013 as an independent, non-governmental self-regulatory organization and external dispute resolution (EDR) forum. For more information, click here or email us at [email protected].