CFTC adds 71 foreign forex, binary options brokers to RED warning list

Do not invest more money than you can afford to lose.

The US Commodity Futures Trading Commission (CFTC) has added 71 foreign forex and binary options to its RED list. The RED list was started in September 2015 and stands for “Registration Deficient”. Now it includes more than 100 foreign entities who have no license to operate on the US market, but have been soliciting US residents.

The majority of the new entries on the list are of binary options broker, most of them unregulated. Some of them, like uTrader, have already turned up on the warning lists of other regulators.

There are, however, some properly regulated forex brokers, like FXGM, which holds a license from the CySEC, or AxiTrader, which is regulated by Australia’s Securities and Investment Commission and UK’s FCA.

As per US legislation, though, all financial services providers operating in the US need to be registered and regulated by the relevant authorities. Besides, the CFTC notes that either way, registration is no guarantee against fraud, but does bring a higher level of security and accountability to the public.

Here are the new additions to CFTC’s RED List:

Financial regulation in the US is very strict and is enforced by the CFTC, the National Futures Association (NFA) and several other watchdogs and self-regulation organizations. The CFTC is particularly hard on foreign binary options brokers and imposes massive penalties for soliciting US citizens. The US law permits only trading in exchange-traded binary options.