According to yesterday’s announcement, AxiTrader Limited has been granted an A-Category Membership Status by the Financial Commission (FinaCom). The move allowed AxiTrader to join a group of other online brokerages that operate in derivatives, FX, and even cryptocurrency market.
Who are FinaCom and AxiTrader?
FinaCom is a completely independent, international service which helps when it comes to resolving various conflicts between brokers and traders. It uses a special Compensation Fund, which is being used as an insurance policy and protects all of its clients, and their members.
As for AxiTrader itself, this is a business name used by the company AxiCorp Financial Services Pty Ltd. At the same time, the company represents a larger group, which is regulated by Australia’s Securities & Investment Commission, as well as by the UK’s Financial Conduct Authority. Now, after FinaCom accepted its application, the company has received A-category membership status, as mentioned.
Receiving this status means that the company’s traders will receive a significantly larger compensation (€20,000) per claim. Further, they would also receive access to the dispute resolution services that the commission itself offers.
FinaCom adds new services to the offering
Apart from expanding the list of its members, the FinaCom also made several other changes, too. For example, it recently started adding some new services, which will allow broker members to spot fraudulent transactions. If spotted, all such transactions will be stopped, as an additional feature of the new services.
In addition, this will also include a new tool called DisputeWatch. The tool will allow brokers to investigate clients and see if there are any dispute records connected to the specific client. If any clients appear to be abusing the system, or if they are suspicious in some other way, the company will receive an alert. This will allow them to know who should not be allowed to enjoy their services, and will eventually lead to the creation of a healthier ecosystem.
As for DisputeWatch, the tool can do this due to the fact that other firms will be able to share information regarding their own disputes with the tool. This will allow all of the firms to protect themselves, as well as help one another. It is also believed that sharing such data will help prevent, or at least reduce various scams and frauds.
The service has already added numerous FX brokers to its list of members, including One Financial Markets, USGFX, CAPXM, AvaTrade, Amana Capital, ADS Securities, Pepperstone, GKFX, and IC Markets.
In addition, FinaCom also created an entirely new tool that investors can use for considering various investment opportunities. The tool is known as the Blockchain Warning List, and it will provide investors with information about the behavior of any digital asset providers that might be considered damaging. This already includes some cryptocurrency wallets and exchanges, which might be conducting illegal activities. The company’s information regarding this comes from the complaints of the exchanges’ customers, as well as other reports.