Forex Compensation Drops, but Member Brokers of FinCom Increase

According to the most recent data from the independent dispute resolution authority, the Financial Commission (FinCom), the online forex trading market showed a decrease in compensation requests made by brokers during the fourth quarter of 2022. Online forex brokers claimed $3.3 million in compensation in Q4 as opposed to $3.5 million in the previous quarter. In addition, the sum paid out to dealers decreased significantly, by 23%, to $60,919.

For FinCom member brokers, things were different, as the amount of compensation requested from them increased dramatically during Q4. The FinCom Quarterly Complaints Digest, which was released on Monday, contained this information.

It’s interesting to note that the pattern changed in the third quarter of 2022. At that time, FinCom requested $3.5 million in compensation from both member and non-member brokers, an increase of 51%. The self-regulatory group also gave dealers greater remuneration, increasing the total by 36% to $79,494.

FinCom blamed the fluctuations in the numbers on “range bound currency and derivatives pricing, as well as winter holidays,” which apparently had an effect on many of its major measures during the year’s last three months. Despite this, it appears that both traders and investors find the forex market to be a source of interest and drama.

Q4 of the forex market: declines and surprises

A fall in several important indices was recorded by the Financial Commission (FinCom), an impartial dispute resolution organisation for the forex business, during the fourth quarter of 2022. The total number of new complaints, settled complaints, and complaints decided in favour of traders all declined during the quarter, according to FinCom’s most recent Quarterly Complaints Digest. While the number of new complaints filed and settled fell by 38%, complaints in favour of traders decreased by 2% from the previous quarter.

FinCom did observe a “noticeable change” in the complaints’ focus in Q4 2022, though. Despite the overall decline in new complaints for the quarter, trading-related complaints, which only made up 11.7% of complaints during Q3, increased by 5% to 19.8% during the most recent quarter.

Non-trading concerns continued to dominate complaint topics in Q4, making for 41.8% of all complaints. Furthermore, concerns about finances continued to rank second in terms of frequency, with 35.1% and 38.4% of complaints in the third and fourth quarters, respectively.

In addition, from 4.6 days during the previous quarter, the average complaint resolution time increased by 33% to 6.1 days this quarter.

For traders and investors, the FX market remains a source of drama and excitement notwithstanding periodic downturns. The 2013-founded FinCom organisation oversees foreign internet brokers, exchanges, and blockchain platforms involved in the world’s FX, derivatives, CFDs, and cryptocurrency markets. FinCom, which has its finger on the industry’s pulse, is a useful tool for keeping track of the most recent advancements and trends in the field of online trading.

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