The Euro Trade Commission insurance fund was created to compensate traders for losses when the conditions of the contract were not met by the broker.
Euro Trade Commission insurance fund and principle of operation?
A separate bank account stores funds contributed by brokers. These funds are used if the broker does not fulfill the Euro Trade Commission decision and acts as insurance for clients whose brokers are members of the Euro Trade Commission.
Each month, brokers make contributions to the Euro Trade Commission and 15% of these contributions are transferred about the insurance fund.
Who does it apply to?
Applies to all customers of companies that are members of the Euro Trade Commission. An important point is understanding the use of the fund, the insurance fund will be involved only if the broker refuses to comply with the commission’s decision.
What is the maximum insurance fund coverage?
If the company is a member of the Euro Trade Commission, then the insurance fund will cover decisions of up to € 10,000 per client.
* Euro Trade Commission is obliged to compensate the client within 90 days from the date of the decision of the Euro Trade Commission to change the status of a member company. During this time, the Euro Trade Commission will take all possible steps to provide compensation to the client directly from the member company and will also confirm the client’s personal data.
** In the event of a shortage of funds due to a large number of unmet claims against a member company, the fund’s current balance will be evenly distributed among all claimants.