This week, the Financial Commission, an independent external dispute resolution (EDR) organization for the foreign exchange (forex) industry, announced that Trade99 is its newest approved member.
Trade99 provides a leveraged cryptocurrency-based asset trading platform. As an A-category member of the agency, which took effect on June 4, 2019, customers of the firm now have access to the Financial Commission’s protection services.
The EDR organization providers brokerages and their clients with a third party mediation platform that helps to resolve issues when the separate parties are unable to come to an agreement themselves.
One of the agency’s services includes protection for up to €20,000 per the submitted complaint, which is backed by its compensation fund. In its own words, the Financial Commission provides a “simpler, swifter resolution process” than going through the typical regulatory channels.
“Trade99 joins a diverse range of brokerages and independent services providers (ISPs) that utilize the services of the Financial Commission and as part of their commitment to their clients while upholding membership requirements,” the statement said.
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Trade99 Joins a Community of FX and Crypto Brokers
Members of the Financial Commission include forex, contract-for-difference (CFD) brokers, as well as companies operating in the cryptocurrency space. As Finance Magnates reported, earlier this year in March, the agency approved DealFX, an online brokerage, as an A-category member.
Recently, the organization also launched a percent allocation management module (PAMM) accreditation scheme. According to the statement released at the time, the new scheme will certify the PAMMs offered by different brokers.
More popular amongst offshore brokers, PAMMs allow traders to allocate a certain amount of cash to investment managers.
Managers then invest those funds and, if they make a profit, they take a commission and payout – in proportion to the amount that they put in – to the investors that gave them money.
The purpose of such a system is to allow inexperienced traders to invest funds without trading their money themselves.