The Financial Commission, a Hong Kong-based external dispute resolution (EDR) organization, has included forex broker EQ Trades as an official member, the commission said on Thursday. The membership is in effect as of 14 January, 2016.
With the addition of EQ Trades, the commission’s members have reached 11 in total.
“As we continue to grow as a company we feel we will continue to excel at meeting our client’s needs and providing them with an excellent Forex trading experience,” EQ Trades CEO Stefan Iliescu said. “We feel that the Financial Commission is providing an essential service to the Forex industry and we want to offer this service to any of our clients who may need it,” he added.
The Financial Commission is an EDR organization, which aims to act as a neutral third party in disputes in the forex market between its members and their clients. The Commission has established a Compensation Fund that acts as an insurance policy for traders with its members. Full 10% of membership fees are used for the financing of the fund.
The rest of the Financial Commission’s members are brokers RoboForex, FxOpen, Alpari, AMarkets, NPBFX, EQMarkets, MTrading, Ibinex, HDForex, and AITS FX.
Until recently, the Russian forex market was not regulated and the inclusion of a broker in commissions and associations provided a sense of security and transparency to local investors. As of 1 January, 2016, however, Russian forex brokers are no longer allowed to operate without a license from the Central Bank of Russia (CBR), which took control over the regulation of the market. Foreign brokers, on the other hand, still can target Russian investors even without been authorized to do so.
Finam Forex, part of the Finam group, is the only licensed Russian forex broker. However, at least three other brokers – Alpari, TeleTrade and Forex Club have said they applied for a license to continue acting as forex brokers in the country, but so far no data has been provided regarding the status of their licenses.
EQ Trades is a trading brand of GEB Global Equity Brokers, which is regulated by Belize’s International Financial Services Commission (IFSC).
Source: The Financial Commission