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CFTC’s RED List
Binary Options fraud is on the rise in recent years as regulators and government agencies continue to receive hundreds of complaints with damages totaling in the millions of dollars in the United States alone. The U.S. Commodity Futures Trading Commission (“CFTC”) has issued a Fraud Advisory concerning Binary Options due to the increased number of victims of these schemes. The CFTC, as part of its efforts to reduce this fraudulent activity, maintains a list of foreign entities that illegally solicit U.S. residents to trade binary options and forex without being registered with the CFTC as required by securities laws. This allows investors to protect themselves against this type of illegal activity.
CFTC and Designated Contract Markets
It is illegal for entities to solicit, accept offers, offer to or enter into commodity options transactions with US persons, unless those options transactions are conducted on a designated contract market. This includes contracts for foreign currencies and metals just to name a few. To determine whether an entity/platform is a designated contract market, you can check the CFTC’s website.
While some binary options are listed and traded on registered exchanges, the majority of binary options trade via Internet-based trading platforms that do not necessarily comply with U.S. regulatory requirements. This means that in addition to the risks associated with the purchase or sale of binary options, there is a higher risk of fraud based upon the unregulated online trading platforms they use.
The internet-based trading platforms typically used for trading binary options allow perpetrators of binary option fraud to find their victims on the internet. These websites are usually operated by individuals overseas and these companies go to great lengths to get investors. Once an investor sends money to the platform it is unlikely that he/she will ever see that money back from the fraudsters.
The individuals operating these platforms usually find a way to keep the investor’s money. Whether by changing the terms of the binary option so as to make it a “losing” bet or by simply placing a freeze on the account when the investor tries to make a withdrawal, the only thing that is certain is that investors will not be getting that money back from the fraudsters.
Due to the overseas operations of most of these trading platforms, bringing the criminals to justice and getting investor funds back is usually very difficult. However, our law firm looks at all potential responsible parties for recovery.
CFTC’s RED List
The CFTC has created a list of foreign entities that illegally solicit U.S. resident to trade in binary options and forex. It is called the “RED List” which stands for “Registration Deficient.” These entities are required to be registered with the CFTC in order to solicit and accept funds from U.S. retail investors for trading in binary options and forex.
The RED List can be found at: www.SmartCheck.gov/REDList.
| 1Billion Forex | Byrix Financial Investments | Ihoptions | Profitable Forex Advisors |
| 2 Options | Capital Bank Markets | Inside Option | RealForex.com |
| 33Option | Capital Trade House | Instant Options | Regal Options |
| AAFX Trading | Cherry Trade | Int’l Brokers Assn Mkts | RidgeWood Securities |
| Advanced Options | Copyprofitshare.com | Ivory Option | Royal Binary |
| Allgo Trading | CT Option | Janus Options | Safe Options |
| Anthony, John | Diamond Managed Forex | Land-FX | Scion Forex |
| AOS Holding | Eagle Gate | Lbinary | Spot Fn |
| ASK Options | Empire Options | London Binary Option | Starling Capital |
| Azbinary | Finpari | Market Options | Stichting WST Capital |
| Banc de Options | FinPro Trading | MarketsWorld | Tall Options |
| Barclays Broker | Forex Broker Inc. | MercerFX | Tallinex |
| Barkley Capital | Forex CBR | MFX Brokers | Titan Trade |
| Bartle Investment Group | Forex Goptions.com | Morton Finance | Trade Quicker |
| BeeOptions | Forex Investment Services | NRG Binary | Trader’sway |
| Big Option | Forex Ltd. | Omega Options | Trades Capital |
| Binary Book | Forex Ukraine | Option Giants | TradeThunder |
| Binary Das | Forex-metal.com | Option King | TradeWiseFX |
| Binary Int’l | FX Choice.com | Option-World | UK Options |
| BinaryRoom365 | FX Moneyworld | Optionprime.com | uTrader |
| Binex Markets | FXT Swiss | Options24hours | Vision Binary |
| BitVC | FXUmarkets | Optionsxo | Weathika |
| Bloombex Options | GFM Trader | Oracle Stone | Win Forex Trade |
| BoursoPro | Glenridge Capital GMR | Pamm-Mam Forex Fund Management | WinOptions |
| BoursoTrade | Golden Tangent Holdings | Planet Option | Wynn Finance |
| BTG Option | GT Options | Profit Forex | YesOption |
Have you been a victim of Binary Option Fraud?
The Silver Law Group can help you bring a claim against all of the responsible parties to help you recover your losses. If an investor suffers losses as a result of binary option fraud they may still be able recover their losses from those that facilitate the fraud. Contact the Silver Law Group today at ssilver@silverlaw.com or call us toll free at (855) 755-4799. You can also fill out the form on this page and one of our attorneys will contact you.