CFTC Adds ‎‏21‏‎ New Forex and Binary Options Brands to its ‘RED List’‎

The US Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) today updated its caution list, the ‘RED List’, in which it warns the public against unauthorized FX and binary options firms that are illegally conducting financial services targeting the country’s residents.

The CFTC added 21 new names to the list, bringing the total number of backlisted entities to over 125.

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Short for ‘Registration Deficient List’, the RED list follows the example of other regulators abroad, such as the AMF (Autorité des marchés financiers) in France, which allows investors to identify unregistered foreign entities that may be engaged in illegal practices.

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The US regulator’s list includes Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and binary options brokers that appear to be soliciting and/or accepting funds from US residents without having obtained CFTC registration, providing more protection and transparency for investors.

According to the CFTC, many of these foreign entities are acting in a capacity requiring them to be registered with the CFTC. Registration allows the agency to provide greater security and oversight of the industry by examining whether firms meet minimum financial standards as well as disclosure, reporting and recordkeeping requirements.

However, the press release emphasized that registration is no guarantee against fraud or mismanagement by an unethical firm, although it does help bring a higher level of security and accountability to the industry.

The following brands have been added to the RED List:

1. Astercap Ltd.
2. Fundix Inc.
3. Broker Official
4. Global Consulting Group
5. Axetrades
6. Goldex Technology Limited
7. B&K Investment
8. K2 Investing
9. Binary Mate
10. Markets The World
11. Binary Options Ltd.
12. Options Robot
13. Binary Options Robot
14. Signals Binary
15. Capital City Markets
16. Suomen Kerran LP d/b/a/ Finministry
17. DineroLibre
18. Trade24 Global Ltd.
19. Finance Group Corp.
20. UTC Broker
21. Forward Option