Compensation Fund

Finance & Liquidity Commission solves the issues if there are requests from complainants. The Forex brokers must acquire membership with FinLC. When the final judgment on the problem is accepted, the money from the fund might be applied. Therefore, it executes the functions of the insurance fund for clients who suffer losses due to unfair actions.

The entire procedure of issuing money to the complainant, in whose favor the issue is resolved, should take no longer than 90 days. The compensation cannot be issued without the personal information of a trader, with which the financial commission board can verify the identity of the customer.

When there is an excessive number of clients, in whose favor the resolution decisions were taken, the compensation fund might lack money. If this happens, FinLC becomes responsible for supplying an equal share of the currently available amounts to all unsatisfied customers.

Which sources finance the fund?

Every forex broker that has membership with the FinLC institution has to pay a monthly membership fee, which is determined by the rules and guidelines of the organization. The funds, received from these monthly fees paid by members, are directed to cover the operational needs of the institution. 10% of the entire amount is allocated to a special separate bank account, where the compensation fund is later formed.

The major goal of Finance & Liquidity Commission is to make sure that the decision-making process is completely independent. That’s why we don’t look to other sources to finance the compensation fund. All the funds come from fees paid by every member monthly.

Who is covered?

To make sure you understand how the compensation system actually works, we need to explain the key points of the coverage policy related to the cases when the fund might be applied. Here are the following:

• the funds issued from this amount aren’t supposed to cover all the losses suffered by a client during the process of trading with a forex broker;
• only those individuals who received the positive decision from FinLC can claim the compensation from this fund;
• if the trader suffered losses because he or she was engaged in self-directed trading, the compensation fund won’t cover them;
• according to the guidelines of Finance & Liquidity Commission, the organization cannot compensate for the losses of clients who suffered because of cryptocurrency trading.

What is the maximum coverage?

The amount that might be covered with funds from the compensation fund depends on many aspects of the dispute. In general, the financial commission considers all the requests of clients, no matter what the monetary values of their issues are.

While there are no limitations on the minimum monetary value of the issue, there are limitations on the maximum coverage. The compensation fund cannot cover more than €30,000 per client.

Why you can trust our Compensation Fund

• All the money collected from fees of the Finance & Liquidity Commission members is stored in the segregated accounts of respectable European banks. Therefore, they cannot be accessed for purposed other than covering the losses of traders who work with our members;
• We guarantee that you will receive compensation from this fund if the broker rejects to provide it from its reserves. Even if the fund won’t have enough money on its balance, a share of the compensation will be supplied;
• We have strict terms within which the compensation should be supplied to the clients who suffered losses. Our guidelines define that this procedure should last no longer than 90 days.

Why You Should Work With Us?