Compensation sought by FX traders dropped by 17% in 2022
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In 2022, there was a 17% drop globally in the total compensation sought by forex traders from brokers. During the same period, the Financial Commission (FinaCom) reported a 76% increase in compensations sought by FX traders from broker members of the external dispute resolution (EDR) entity.
Compensation sought by FX traders globally is down by 17%
The 2022 Annual Complaints Summary published by FinaCom noted that the EDR body had grown its global presence by 30% last year compared to 2021. In 2022, FinaCom onboarded 13 forex brokerage platforms as new members. It also issued a certification to one technology provider during the period.
Some forex brokers that joined FinaCom in 2022 include Agra Markets, Bold Prime, Fullerton Markets, Inveslo, Pepperstone, ThreeTrader, TMGM, Vantage, and Vida Markets. However, during the same year, FinaCom also withdrew its membership in EGMarkets, Fiber Markets, and LordFX.
During the year, GANN Markets, a forex brokerage company based in Montenegro, filed to have its membership withdrawn. FinaCom granted the application and withdrew GANN Markets’ membership in April last year.
FinaCom’s global presence increased significantly in 2022. The EDR became increasingly popular across Asia, Europe, and Latin America. The growing popularity of the institution came at a time when market volatility was increasing and geopolitical tensions were high.
In Asia, Europe, and Latin American markets, the number of new complaints made to forex and CFD brokers increased by 47%, 30%, and 38%, respectively. Additionally, the new complaints filed by traders in Russia and its allies dropped by 38% in 2022 amid restrictions.
FinaCom reports faster resolution time
A recent report by FinaCom noted that the average time to resolve complaints filed by brokers in 2022 had improved to 5.6 days. This was the fastest resolution time that the EDR has reported in history.
FinaCom noted that the quick resolution time has happened despite the number of complaints filed by forex traders against brokerage companies during the year jumped by 26%. In 2022, FinaCom recorded 3,026 complaints. The EDR managed to resolve 2,968 complaints during the year, 27% more than what was resolved in 2021.
FinaCom has also explained that most of the complaints filed by forex traders in 2022 were non-trading complaints that accounted for 58% of the total complaints. The complaints about financial disputes represented 29% of the total, while trading disputes accounted for 13%.
FinaCom has also reported that out of the complaints that were resolved during the year, 42% favored brokerage platforms, while 16% favored forex traders. The EDR further noted that more than half of the complaints, equivalent to 52%, were outside its jurisdiction.
