In a significant development for the financial services industry, JDR Securities has officially become an approved member of the Financial Commission (FinCom). This move signifies a growing trend within the FX and CFDs sector, with more online brokerages embracing external dispute resolution services.

According to a statement shared with Finance Magnates, as of August 21, 2023, JDR Securities assumed its status as an Approved Broker Member of FinCom. This step reportedly followed a review and approval of the company’s membership application by the commission.

JDR Securities and FinCom

JDR Securities offers an array of over-the-counter CFDs products, including forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, commodities, and indices, according to the information on its website. The broker’s operations span three brands: JDR Securities (New Zealand), JDR Securities Limited (St. Vincent and the Grenadines), and JDR Tech Pty Ltd.

By joining this self-regulatory organization, JDR Securities offers its clients access to an array of benefits, the company mentioned. This includes the provision of protection for up to €20,000 per submitted complaint, supported by the Financial Commission’s compensation fund.

More than a week ago, FinCom granted membership to the London-based online brokerage firm EBC Financial Group. The recognition was made as the commission continues to grow its network of brokers and independent service providers, currently standing at 47.

FinCom’s Expanding Membership

EBC Financial Group Limited, an online brokerage company, operates under the regulatory oversight of the Financial Conduct Authority (FCA) in the United Kingdom. Another entity of the group, EBC Global Pty Ltd, is regulated by the Australian Securities and Investments Commission (ASIC). It maintains a robust international presence, with offices spanning major cities such as London, Tokyo, Sydney, Singapore, Hong Kong, Kuala Lumpur, and Bangkok.

FinCom mediates disputes between brokerages and their clients when they cannot reach a direct resolution. For the companies engaging in CFDs, forex, and cryptocurrency markets, the commission presents an alternative to the traditional paths of arbitration of local court systems.

While FinCom endeavors to strengthen its industry’s integrity, it has encountered instances where brokers allegedly fell short of compliance to the regulatory guidelines. Notable examples include LordFX, Gann Markets, and BalansFX, which faced suspension for the commission due to reported breaches.

Meanwhile, FinCom uncovered an alleged fraudulent website named Crypto Exchange Association at the beginning of the month. According to the agency, the website allegedly duplicated the details of FinCom’s broker members and emulated the private regulators’ dispute resolution services.