The Financial Commission (FinCom), the independent external dispute resolution (EDR) body for the forex industry, has expelled retail FX broker BalansFX from its organization. The mediator announced the development on Monday, attributing the decision to the brokerage's numerous failures to comply with its rules and guidelines.

BalansFX’s membership of FinCom afforded the brokerage’s clients deposit protection of up to €20,000 for each complaint they filed, among other membership benefits. However, with BalansFX’s membership now cancelled, these benefits are no longer accessible, FinCom said.

“As a result of the expulsion, the Financial Commission will not be able to reimburse using the organization’s Compensation Fund since clients of approved members can only use the compensation fund and is subject to the ruling of our Dispute Resolution Committee,” FinCom explained in a statement.

BalansFX Joins FinCom’s Expulsion List

BalansFX’s application to join FinCom was approved in July 2020, with the brokerage becoming the 49th company to join the ranks of the self-regulatory organization. The firm offers services for trading in FX, indices, CFDs, and commodities.

According to FinCom, BalansFX has operated in European countries since 2011 and entered the Turkish financial markets in 2018. The brokerage was founded in London through collaboration between top industry investors.

BalansFX is only one of several members FinCom pushed out of its organization in recent months. Forex and contracts for difference brokers recently expelled include firms such as Bold Prime, Fiber Markets and LordFX. On the other hand, FinCom welcomed new members, such as ThreeTrader, TMGM and Pepperstone in recent months.

FinCom Warns Traders against TresorFX

Meanwhile, FinCom this week added TresorFX to its warning list, urging traders and investors to avoid the company’s website. TresorFX is a broker and an online investment management advisory platform targeted at forex traders.

The EDR organization said it took the decision based on complaints from traders. However, it did not disclose the specific complaints laid.

“Upon reviewing the submitted information from potential customers of this broker, the Financial Commission has determined that the indicated company and associated website may be used to scam and defraud traders and investors,” FinCom explained. “As such, the Commission does not recommend doing business with this entity, either individual purporting to represent this broker on social media and in private messages on popular messaging apps.”