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Screenshot of a breaking news alert e-mail from Q2 2017
As part of its ongoing efforts to help protect Americans from fraud, the U.S. Commodity Futures Trading Commission (CFTC) has announced the addition of 23 new names to the RED List (see below).
Started in September 2015, the CFTC RED List – standing for “Registration Deficient” – contains the names of unregistered foreign entities that the CFTC has reason to believe are illegally soliciting and accepting funds from US residents at a retail level for trading in foreign currency (forex) or binary options. These brokers are required to register with the CFTC but, in fact, are not registered.
These 23 new additions bring the total number of foreign brokers on the RED List to over 40.
The CFTC also reminded traders that registration is still no guarantee against fraud or mismanagement by an otherwise unscrupulous firm. However, it 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 record keeping requirements.
The CFTC publicizes the existence of the RED list to other government regulators, the media, consumer groups, industry participants, self-regulatory organizations, exchanges, and industry associations.
The CFTC’s compilation of its RED List follows similar action taken by other governmental regulators such as in Canada, which have reason to believe that certain unregulated brokers are targeting traders in their jurisdiction.
The 23 foreign entities added to the RED List are:
- Banc de Options
- Barclays Broker
- Binary Book
- Binary Das
- Binary Int’l
- BTG Option
- Diamond Managed Forex
- Forex Broker Inc.
- Forex CBR
- Forex Investment Services
- Golden Tangent Holdings
- Ivory Options
- Land FX
- NRG Binary
- Paam-Maam Forex Fund Management
- Profit Forex Corp
- Titan Trade
- UK Options
The complete CFTC RED List can be found at: www.SmartCheck.gov/REDList.