Forex Compensation Sees A Dip, FinCom Member Brokers Soar
The online forex trading industry saw a decline in compensation sought by brokers during the final quarter of 2022, according to the latest data from the independent dispute resolution body, the Financial Commission (FinCom). In Q4, the compensation sought by online forex brokers dropped to $3.3 million from $3.5 million in the previous quarter. Additionally, the amount awarded to traders fell by a significant 23% to $60,919.
However, the story was different for FinCom member brokers, as the compensation sought from them skyrocketed by 66% during Q4. This information was revealed in FinCom’s Quarterly Complaints Digest, which was published on Monday.
Interestingly, the trend was reversed in the third quarter of 2022. At that time, the compensation sought from both member and non-member brokers of FinCom increased by 51% to $3.5 million. Additionally, the self-regulatory organization awarded more compensation to traders, with the amount rising by 36% to $79,494.
FinCom attributed the fluctuation in figures to “range bound forex and derivatives prices, as well as winter holidays,” which reportedly impacted many of its key metrics during the final quarter of the year. Despite this, it seems that the forex industry is still a source of intrigue and drama for traders and investors alike.
Forex Industry’s Q4: Declines & Surprises
The Financial Commission (FinCom), an independent dispute resolution body for the forex industry, has reported a decline in various key metrics during the fourth quarter of 2022. According to FinCom’s latest Quarterly Complaints Digest, the total number of new complaints resolved complaints, and complaints ruled in favor of traders all decreased during the quarter. While new filed and resolved complaints dropped by 38%, those in favor of traders came in 2% lower than the prior quarter.
However, FinCom also noted a “noticeable change” in the focus of complaints during Q4 2022. Trading-related complaints, which only accounted for 11.7% of complaints during Q3, rose by 5% to 19.8% during the recent quarter, despite the general drop in new complaints for the quarter.
Non-trading complaints continued to be the major topic of complaints, accounting for 41.8% of all complaints during Q4. Additionally, finance-related complaints remained the second most common complaint topic, accounting for 35.1% and 38.4% during Q3 and Q4, respectively.
Furthermore, the average resolution time for complaints slowed by 33% to 6.1 days, down from 4.6 days during the last quarter.
Despite these downturns, the forex industry continues to be a source of drama and intrigue for traders and investors. FinCom, which was founded in 2013, regulates international online brokers, exchanges, and blockchain platforms that are active in the global forex, derivatives, CFDs, and cryptocurrency markets. With its finger on the pulse of the industry, FinCom is a valuable resource for keeping track of the latest developments and trends in the world of online trading.
