Alpari and FXTM renounce their Financial Commission membership
The Financial Commission today announced that FX brokers Alpari and FXTM have renounced their membership status as a result of their voluntary withdrawal.
This is not a surprise as ForexTime Limited, the CySEC-regulated arm of Andrey Dashin’s FXTM brand, renounced its Cyprus Investment Firm (CIF) license and ceased all operations under the Cypriot entity as of December 31, 2023.
Exinity, which was founded in 2020 by Andrey Dashin, the owner of brokerage companies Alpari and FXTM, ceased its services to retail investors in Europe in February 2021. The decision to suspend its retail business in the EEA region was made as part of FXTM’s internal strategy to focus on other markets and prioritize the growth of its B2B operations.
This move aligns with similar decisions made by other forex brokers who have opted to close their retail business in the EU/EEA, including the UK, due to internal strategic considerations.
The membership of Alpari and FXTM was voluntarily withdrawn from the Financial Commission effective January 27, 2024, according to a FinaCom statement.
As such, the commission noted that it will not be able to process any new complaints from their respective clients, following its expulsion from its roster as of the date of this announcement and moving forward, or until membership is approved again.
Alpari and FXTM had been members of the Financial Commission for nearly a decade. Traders of a company with this membership status can be eligible for compensation of up to €20,000 per complaint, as well as having access to all dispute resolution services offered by the Commission. All clients of member companies are protected by the Compensation Fund, which acts as an insurance policy.
In cases when complaints are filed against a member firm, the Financial Commission uses a proven method to process complaints and a decision is delivered by the Dispute Resolution Committee (DRC). However, the Financial Commission cannot process complaints against non-members, and no further action is taken.
The Financial Commission has been actively expanding its list of members in recent months. In addition to providing dispute resolution and certification services to the participants of the Forex and derivatives markets, the Financial Commission extends its coverage to the crypto community and blockchain startups.