The Financial Commission (FinaCom), a Hong-Kong-based external dispute resolution (EDR) organization, said on Wednesday it has added binary options and contracts for difference (CFDs) broker Grand Capital as a member. As a result, the commission’s members have increased to 12.
The membership status tool effect as of 15 January, 2016, the commission said in a statement.
“Brand confidence building and client’s feedback have always been one of the top priorities for the company and this step is aimed to give our clients more confidence in the transparency of the company’s work and should any disputes occur, the clients always know that they are protected by the independent commission,” Grand Capital CEO Stanislav Vaneev was cited as saying. “We believe that providing customers with a neutral 3rd party mediator when dealing with a large number of traders in markets such as foreign exchange is an important step in development process for any broker,” he added.
The rest of the Financial Commission’s members are brokers RoboForex, FxOpen, Alpari, AMarkets, NPBFX, EQMarkets, MTrading, Ibinex, HDForex, AITS FX, and EQ Trades, the last one of which was added last week
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 clients of its members. Full 10% of the membership fees are used for the financing of the fund.
Grand Capital, set up in 2006, provides financial, educational and brokerage services. It offers trading of binary options and contracts for difference (CFDs) on stocks, gold, oil, lumber and forex instruments. Through its offices in Europe, Asia, Russia and the Commonwealth of Independent States (CIS), the broker services individual and corporate clients worldwide.
The company is registered in the Seychelles and is a member of KROUFR, a Russian non-for-profit organization for the regulation of relations on the financial market, and Russian self-regulatory organization Centre for Regulation in OTC Financial Instruments and Technologies (CRFIN).
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.
Source: The Financial Commission