CFTC Slams 20 Forex Brands with Regulatory Warnings

Source: Finance Magnates 2020-08-25

The US Commodity Futures Trading Commission (CFTC) 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 20 new names to the list, bringing the total number of backlisted entities to 168.

The CFTC has been active recently in its cleanup of the forex space with charges being brought against a dozen of brokers and trading apps. Just last week, the agency hit OANDA Corporation with a $500,000 fine for failing to adhere to certain regulations, including that it failed to meet minimum capital requirements.

Earlier in June, Gain Capital UK was ordered to pay a civil penalty of $250,000 over allegations it signed up US investors to its FX trading platform. It has also agreed to disgorge $241,671, as well as to “cease and desist” from any futures breaches.

Today’s warning is also another action within the US regulators’ crackdown on binary options operatives after a series of cases uncovered massive fraud in the shady industry.

The RED list

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.

The US regulator’s list includes forex 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:

Allegra Markets
IDB Traders/Baltic Concert LLP
Capital 245
MM Financial Experts
Coinexx
Omega Crypto
Crown Finance
Omega Capitals
EagleFX
Platin CFD
Easy Line Pro
Richmond FG
F1 Trade
Top Option 360
FX Dealer
Trade GF
FXVIP
Turnkey Forex
Global Capital Options
VIP Businesses
Grand Tradefx
Wellington INV/Bali Limited LTD

U.S. Commodity Futures Trading Commission

investment

United States

forex trading

United Kingdom

CFTC Slams 20 Forex Brands with Regulatory Warnings

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