US Regulator updates brokers warning list: 21 Illegal Brokers


Don’t mess with CFTC! US Regulator updates brokers warning list, adding as much as 21 new names to its Registration Deficient List (RED List). What are the names you need to be wary of?

18 December, AtoZForex One of the key US financial regulators, the Commodity Futures Trading Commission’s (CFTC) mission is to safeguard the US investors from financial fraud. In its latest attempt to protect the investor community, the US watchdog has added 21 new names to its Registration Deficient List (RED List).

US Regulator updates brokers warning list

The CFTC has informed the public today that it has added 21 new names to its RED list. The latest addition of 21 new firms marks the total amount of foreign entities at 125. The US CFTC RED list has been launched back in September 2015. The key purpose of the list is to identify the unregistered foreign entities that are soliciting and accepting funds from the US investors.

These firms usually offer their services to retail investors. They also provide an opportunity to trade Binary Options or to trade on the foreign exchange. As a note, the CFTC reminds that all entities are required to register with the CFTC. Yet, the US financial markets supervisor further adds:

“Registration with the CFTC is no guarantee against fraud or mismanagement by an otherwise unscrupulous firm; however, registration 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 recordkeeping requirements under the Commodity Exchange Act.”

CFTC Unmasks 21 Illegal Brokers

The CFTC has added new entities to the RED list back in April 2016 and April 2017. In addition, the CFTC RED List is completing the registration data that is available to the public on the National Futures Association website.  Please see the 21 newly added names that made it to the CFTC RED List.

US Regulator updates brokers warning list

You can find the complete RED List here.

The CFTC further states that it shares the RED List with “other government regulators, the media, consumer groups, industry participants, self-regulatory organizations, exchanges, and industry associations.”

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