The Financial Commission (FinaCom), a Hong Kong-based external dispute resolution (EDR) organization, said on Thursday it has approved two new members – offshore forex brokers MaxiMarkets and Umarkets. The two entities have an active member status effective from 20 June, 2016.
FinaCom has as members forex and binary option brokers and independent service providers (ISP). In addition it certifies the technology solutions of members and candidate members. Entities fall in one of two membership categories, depending on the amount of compensation to which their clients are entitled. MaxiMarkets and Umarkets are both A-category members, which means that their clients could receive up to $10,000 under the FinaCom compensation scheme in case of dispute.
Both brokers are part of Maxi Services. Umarkets holds a license by the International Financial Services Commission (IFSC) of Belize, while Maxi Markets seems to be unregulated. Both brokers are actively operating in Russia. Maxi Services intends to expand through the Umarkets brand into the Latin America and Asian markets, according to the broker’s website.
In addition to forex, the two brokers offer trading in other instruments, including precious metals, oil, commodities, and indices. Both brokers service retail traders, but Umarkets also works with institutional clients.
The FinaCom, set up in 2013, is an EDR organization which acts as a neutral third party, or a mediator, in disputes in the forex and binary options markets between its members and their clients. The outcome of a dispute is decided by FinaCom’s Dispute Resolution Committee, which consists of industry professionals and executives of leading brokers. It has been gradually adding new members and improving its services. Full 10% of the membership fees are used for the financing of the FinaCom compensation fund.
A-category membership, which allows traders to receive up to $10,000 under the FinaCom compensation scheme in case of dispute, includes Alpari, A-Markets, Forex Club, FXOpen, Ibinex, Olymp Trade, RoboForex, Starfish FX, and now MaxiMarkets and Umarkets. B-category membership, which includes brokers EQMarkets, EQTrades, Grand Capital, HDForex, MTrading, and NPBFX, ensures compensation of up to $5,000 of traders’ investments.