The board of the Financial Commission has started accepting the application of those companies that want to join the self-regulator’s member list.
The brokerage firm CapitalXtend filed for it and recently, got the approval from Financial Commission to become its member.
As per the report, the list is created using online brokerage operating in FX, derivatives and crypto markets.
Now, as CapitalXtend has become a member of FinaCom PLC, the brokerage firm’s traders could get compensation of up to $23,679.38 for each of their claims.
Also, the traders could now enter into all dispute resolution services that are being offered by the commission.
The multi-asset brokerage firm, CapitalXtend, allows the trading of Forex, CFDs, indices, commodities, equities and cryptocurrencies.
Although the company is based in Vincent and Grenadines, it works as an offshore provider of financial services.
CapitalXtend has neither got authorization for its operation from any of the financial regulatory bodies nor has it claimed regulatory status in any jurisdiction.
In order to resolve the conflict between the traders and brokers, FinaCom was formed. This independent international service provides a resolution of disputes for that.
It is to be noted that, “All clients of members of the Financial Commission are protected by the Compensation Fund, which acts as an insurance policy.”
Recently, the annual report of FinaCom has been published, which stated that the self-regulator is doing well across its key business drivers.
As per the report, every year the number of the new complaints was increasing by 7 percent and compared to the year 2018, when the total compensation offered to traders was $3,184,932, in the year 2019, the total compensation offered was $7.4 million.
The report further stated that slowly, the resolved complaints in ‘client favor’ had increased to by percent. A total of 451 cases had been ruled in favor of the commission’s broker member.