The Financial Commission’s board has adopted resolutions approving a new applicant to join the self-regulator’s member roster, which is made up of online brokerages operating in FX, derivatives and cryptocurrency markets. This round of approved applicants includes CapitalXtend.
Following the acceptance of its application by FinaCom PLC, CapitalXtend has obtained membership status which means that its traders can be eligible for compensation of up to €20,000 per submitted claim and have access to all dispute resolution services offered by the commission.
CapitalXtend is a multi-asset brokerage firm that offers trading of Forex, CFDs, indices, commodities, equities, and cryptocurrencies. The company operates as an offshore provider of financial services based out of Vincent and the Grenadines. It is not licensed by any financial regulator, and it does not claim any regulatory status in any jurisdiction.
FinaCom is an independent international service that offers the resolution of disputes to resolve trader-broker conflicts. In addition to a more streamlined and swift resolution process, relative to traditional channels of arbitration, all clients of members of the Financial Commission are protected by the Compensation Fund, which acts as an insurance policy.
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According to its latest annual report, the self-regulator made progress across some of its key business drivers. Specifically, the number of new complaints rose 7 percent year-over-year as a record $7.4 million sought by traders in 2019, up from $3,184,932 in 2018.
Likewise, the number of resolved complaints in ‘clients favor’ increased 17 percent to 179, up from 153 the previous year. The commission also ruled in favor of its broker members in 451 cases it assessed, up from 373 in 2018.
Furthermore, for approved members, the Financial Commission introduces many services intended to allow brokers to spot and halt fraudulent transactions. This includes its DisputeWatch tool which lets the broker search its community registry to see if a client has any dispute records, and sends alerts regarding suspicious clients that have the potential to abuse a company.