FinaCom (The Financial Commission), the self-regulatory body of the retail brokerage market, has added another member to its roster. This roster made up primarily of online brokerages that deal with forex, derivatives, and cryptocurrency markets is granted certain privileges that are not available to brokerages that do not follow the rules that FinaCom has set.
Applicaiton approval gives the company special privileges
AxiTrader, the business name of AxiCorp Financial Services, applied for A-category membership that would allow its traders to be eligible for compensation. This compensation is valid for 20 thousand US Dollars per claim submitted as well as the traders having access to any and all dispute resolution services that FinaCom offers.
AxiCorp is a group of companies that are regulated by two notable financial watchdogs. Namely, they are under the purview of the FCA (Financial Conduct Authority) which operates in the United Kingdom and ASIC (Australian Securities and Investment Commission). While these two financial regulators can be tough and demanding on their members, the fact that AxiTrader is now part of FinaCom’s stable means that traders can feel even safer than they are in trusted hands no matter what happens.
FinaCom itself is an independent service that offers a resolution of disputes between traders and brokers. Its Compensation Fund acts as a sort of insurance policy against bad behavior – whether on the side of traders or brokers.
FinaCom expands with new service offerings
The Financial Commission has worked to increase the visibility of its services and also make users aware of the breadth and depth of its services. One such, new, service is its system that allows member brokers to spot fraudulent transactions. Part of this tool is something called DisputeWatch. This allows brokers to search its community registry for any clients that might have any dispute records. This is one of the benefits of joining brokers since it is a deal that allows the sharing of information via a trusted third party. This is doubly important due to GDPR rules in Europe.
The service has helped FinaCom increase the number of brokers looking to get A-Category membership. This includes such luminaries as Pepperstone, AvaTrade, USGFX, IC Markets, GKFX, One Financial Markets, ADS Securities, INFINOX, CAPXM, and Amana Capital. These are all big players in the retail brokerage market.
Another tool that FinaCom has released helps investors in cryptocurrency to check if a particular investment opportunity is a scam or not. It has dubbed it the “Blockchain Warning List” and it works by providing a good amount of information on the previous behavior of certain digital asset providers. Recent entries in this list include cryptocurrency exchanges and online wallets that have been (or currently are) suspected of conducting illegal activities. These are based on reports and complaints filed by customers – but it is curated for authenticity by FinaCom itself.
These two new services have helped FinaCom bring some semblance of order to the Wild West of the online brokerage game that has been going on since its inception in the early 2000s.