FXTM withdraws from the Financial Commission and ceases EU retail operations, impacting client protections.
In recent forex broker news, the well-known FXTM forex broker left the Financial Commission after it closed its EU/EEA branch. This new step came right after FXTM's withdrawal of its CIF license, which was also governed by CySEC and expired at the end of 2023.
Exinity, owned by Andrey Dashin, who is the owner of FXTM forex broker, paused its services to retail customers in Europe in February of 2021 as it was part of Exinity's strategy to focus on B2B operations and to explore other markets.
The company's decision to pull out of the Financial Commission indicates a similar trend among forex brokers that have revoked their market access to the EU/EEA due to internal strategic considerations.
As of January 27, 2024, this low-spread broker has withdrawn from the Financial Commission, which implies that starting with this date, the broker cannot answer any new complaints.
Before the change, FXTM's membership entitled its clients to arbitration free of charge up to €20,000 per complaint, as well as the use of the Commission services in resolving the disputes, all of which was also insured by the Compensation Fund.
The Financial Commission continuously grows its membership, branching out its services to crypto and blockchain startups. Yet, the withdrawal of this high-leverage broker underscores shifts within the forex industry and shows the broker's changing strategies.
As they move forward, the clients of this multi-asset broker who have withdrawn their funds may need to explore other alternatives for dispute resolution and reimbursements.