The Financial Commission, a Hong Kong-based external dispute resolution (EDR) organization, said on Tuesday it has granted membership to forex and contracts for difference (CFDs) broker Forex Club, increasing its members to 13 in total.
The FinaCom, set up in 2013, is an EDR organization which aims to act as a neutral third party in disputes in the forex and binary options markets between its members and their clients. Its members have reached 13 after earlier this year it added forex broker EQ Trades and binary options and CFDs broker Grand Capital. The commission’s other members are Aits FX, AMarkets, Alpari, EQMarkets, FxOpen, HDForex, Ibinex, MTrading, NPBFX, and RoboForex.
The commission has established a Compensation Fund that acts as an insurance policy for clients of its members. FinaCom’s Dispute Resolution Committee, which consists of industry professionals and executives of leading brokers, decides on the outcome of a dispute. Investments of up to $10,000 per case are covered under the FinaCom compensation scheme. Full 10% of the membership fees are used for the financing of the fund.
Forex Club is a provider of trading and educational products for investment in forex, CFDs, securities, precious metals, oil and gas, indices and other instruments. It is active in more than 120 countries worldwide.
The group does not provide on its website information regarding licensing. In December 2015, it said it had applied for a Russian forex broker license, after earlier in the year Russian adopted regulatory amendments requiring local forex brokers to obtain a license from the relevant authorities in the country in order to continue providing their services to local citizens after 1 January, 2016. Meanwhile, foreign brokers still can target Russian investors even without authorization.
Forex Club’s Russian arm is a founding member of CRFIN, Russian self-regulatory organization Centre for Regulation in OTC Financial Instruments and Technologies.