CFTC Slams 20 Forex Brands with Regulatory Warnings
- The CFTC has been active recently in its cleanup of the forex space with charges being brought against a dozen of brokers.
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 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 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 Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. It has also agreed to disgorge $241,671 and 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
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 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 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 Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. It has also agreed to disgorge $241,671 and 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