CFTC adds 21 unregulated Forex and Binary Options brokers to RED list that illegally target US traders

The Commodity Futures Trading Commission (CFTC) informed that it has added 21 new names to the Registration Deficient List (RED List). These 21 new additions bring the total number of foreign entities on the RED List to 125.

The RED List, launched in September 2015 identifies unregistered foreign entities that the CFTC has reason to believe are soliciting and accepting funds from U.S. residents at a retail level for, among other things, trading in binary options or foreign currency (forex) and are required to register with the CFTC but, are not registered.

Registration with the CFTC is no guarantee against fraud or mismanagement by an otherwise unscrupulous firm; however, registration does bring a higher level of security and accountability to the public. For example, registration enables the CFTC to examine whether firms meet minimum financial standards as well as disclosure, reporting, and recordkeeping requirements under the Commodity Exchange Act.

Additional entities have been added to the RED List in April 2016 and April 2017. The RED List complements registration information available to the public on the National Futures Association website.

The 21 new foreign entities added to the RED List are:

See the complete list at RED List.

See CFTC’s Binary Options Customer Fraud Advisory

The CFTC has issued a Consumer Alert to warn about fraudulent schemes involving binary options and their trading platforms.  The Alert warns customers that the perpetrators of these unlawful schemes typically refuse to credit customer accounts, deny fund reimbursement, commit identity theft, and manipulate software to generate losing trades.