Bold Prime, a MetaTrader4 contract for difference (CFD) service provider, is now a member of the Financial Commission (FinCom), a forex industry-focused external dispute resolution (EDR) organization.
Bold Prime’s membership took effect on August 17th after FinCom approved its membership application.
With the membership, Bold Prime and its customers can now access a broad range of service and membership benefits under FinCom.
This, among others, includes the ability to enjoy protection for up to €20,000 from the EDR organization’s Compensation Fund.
“Bold Prime joins a diverse range of brokerages and independent service providers (ISPs) that utilize the services of the Financial Commission as part of their commitment to their clients while upholding membership requirements,” FinCom said in a press statement shared with Finance Magnates.
FinCom and External Dispute Resolution
As an independent EDR body dedicated primarily to the forex industry, FinCom provides third-party mediation services to member brokerages and their customers.
The body's goal is to help forex brokers resolve complaints in situations where parties involved in a dispute or case are unable to directly come to an agreement.
“For approved members and their clients participating in CFDs, foreign exchange (forex) and cryptocurrency markets, the Financial Commission helps facilitate a simpler, swifter resolution process than through typical regulatory channels, such as arbitration or local court systems,” the organization said in the press statement.
To enforce the rules of the organization, FinCom has expelled at least two brokers this year.
Earlier this month, the self-regulatory organization expelled LordFX, an online forex broker, from its organization for violating its membership rules and guidelines.
Additionally, in April, the EDR body expunged EGMarkets, a financial trading services provider, from its organization, citing “repeated violations of the membership Rules and Guidelines specific to the payment of membership dues.”
On the contrary, GANN Markets, a forex and CFD broker, recently withdrew its membership from FinCom. FinCom did not state the reason for the withdrawal.
Since the start of 2022, FinCom has approved the membership application of at least three forex and CFD brokers.
The brokerage firms are Pepperstone, Agra Markets and Inveslo.
