The FinancialJuly 13th, 2021, The Financial Commission today announces its operating metrics for the first half of 2021 as part of its ongoing Complaints Digest publications highlighting the organization’s performance. Continued interest in trading volatile global financial markets following the Covid-19 pandemic has led to significant changes in some key metrics of the dispute resolution service of the organization, while average dispute resolution times continued to improve. The organization also added 5 new broker members and certified two platform providers during this period.
Key Half Year Highlights (as compared to 1H 2020):
- New resolved complaints up 17% to 772
- Total compensation sought by traders down 19% to $5.9M
- Compensation sought from non-members up 217% to $4.5M
- Total amount awarded to traders $125,339
- Average complaints value $7,642
- Average resolution time improved 3% to 7.2 days
A Detailed Summary
Key Takeaways for 1H 2021
- Continued volatility in financial markets following the Covid-19 pandemic attributed to a rise in filed and resolved complaints of 17% so far in 2021
- The amount of compensation sought by traders totalled over $5.9M and included a large proportion of “non-trading related” disputes resolved by the organization
- Traders were awarded less compensation in the first half of 2021 as compared to the same period last year due to several key outliers in 2020 and indicating the large proportion of complaints ruled in favour of brokers
- The average value of complaints for the first half of 2021 fell to $7,642 in part due to several high-value cases brought in 1H 2020
- Complaints were resolved in 7.2 days on average, which is 3% quicker than the same period in 2020, yet still comfortably quicker than other organizations tasked with dispute resolution in the FX & CFD markets.
Conclusions
The Financial Commission continues to effectively resolve traders’ disputes and public inquiries during continued elevated trader and broker activity around the world. Continued interest in trading opportunities in global markets has resulted in more demand for trading services among broker members, who have adapted their internal dispute resolution (IDR) processes to the influx of new traders seen in 2020 and, as such, have led to the reduction of compensation amounts sought from their trades. The Dispute Resolution Committee witnessed a significant rise in compensation sought from non-member brokers of 217%, indicating that trader protections are still lacking around the world. Several key outliers in amounts awarded to traders and average complaint values have negatively impacted 1H 2021 results, yet these metrics reflect the continued effectiveness of the dispute resolution service. “Trading related” complaints rose by 19% for the first half of 2021, while “non-trading related” complaints more than doubled to 325 in this time period, highlighting the broad scope of issues experienced by traders today. The highest trending complaints topics included account blocking, withdrawal of funds and price check requests further highlighting the continued interest in trading FX and CFD markets by traders of all experience levels.
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].