<p>The total compensation sought by online forex brokers from all
brokerages declined slightly to $3.3 million during the fourth quarter of 2022,
down from $3.5 million in the prior quarter. Similarly, the compensation
awarded to traders dropped by 23% to $60,919 during the past quarter.</p><p>On the contrary, the compensation sought from member brokers of the Financial Commission (FinCom), the independent external dispute resolution (EDR) body for the forex industry, surged by 66% during the fourth quarter of last year. These details are according FinCom’s <a href=”https://financialcommission.org/2023/01/16/financial-commission-reports-increases-in-amounts-sought-from-members-and-average-complaint-values-among-key-metrics-for-4q-2022/” target=”_blank” rel=”follow”>Quarterly Complaints Digest for Q4 2022</a> published on Monday.</p><p>In the third quarter of 2022, total compensation sought from both member
and non-member brokers of FinCom had <a href=”https://www.financemagnates.com/forex/fincomm-awards-36-more-compensations-to-forex-traders-in-q3-2022/” target=”_blank” rel=”follow”>jumped by 51% to $3.5 million</a>. The self-regulatory
organization also awarded more compensation to traders during the period as the
amount awarded rose by 36% to $79,494. </p><p>FinCom noted that “range bound <a href=”https://www.financemagnates.com/terms/f/forex/” class=”terms__secondary-term” id=”6faa6714-7f7b-4d23-b1c5-c0d40807d613″ target=”_blank”>forex</a> and derivatives prices, as well as
winter holidays” affected many of its key metrics during the last quarter.</p><p>Did Retail Traders Forgo Active Trading during Q4 2022?</p><p>In other metrics, <a href=”https://www.financemagnates.com/tag/fincom/” target=”_blank” rel=”follow”>FinCom</a> reported declines in the total number of new
complaints it received, resolved and ruled in favour of the traders during the
quarter. While new filed and resolved complaints went down by 38%, those in
favour of traders came in 2% lower than the prior quarter.</p><p>“Slowdowns in filed and resolved complaints, as well as compensation
sought suggest traders may be finding less opportunities on traditional markets
in light of range bound price fluctuations or simply forewent trading at the
end of the year,” FinCom explained in the quarterly report.</p><p>Furthermore, FinCom noted that there was a “noticeable change” in the
focus of complaints during Q4 2022. While trading-related complaints only
accounted for 11.7% of complaints during Q3, this category rose by 5% to 19.8%
during the recent quarter “despite the general drop in new complaints for the
quarter.”</p><p>Nonetheless, non-trading complaints continue to be the major topics of
complaints, accounting for 41.8% of all complaints during Q4. In addition,
finance-related complaints are still the second most common complaint topic,
accounting for 35.1% and 38.4% during Q3 and Q4, respectively.</p><p>Moreover, complaints average resolution time slowed by 33% to 6.1 days,
down from 4.6 days during the last quarter. </p><p>“Complaints listed in the value category $1-10K and $10K+ increased
their overall share of complaints 5%, highlighting the continued importance of
the organization to investigate complaints with higher monetary values,” FinCom
further explained.</p><p>FinCom, an EDR body founded in 2013, regulates international online
brokers, exchanges and <a href=”https://www.financemagnates.com/terms/b/blockchain/” class=”terms__main-term” id=”be18ed01-45fc-4044-b447-06802a10dbcd” target=”_blank”>blockchain</a> platforms that are active in the global
forex, derivatives, CFDs and cryptocurrency markets. </p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
