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CFTC Warns US Traders About Unregistered Foreign Companies

September 9, 2015 by

CFTC is doing its best to protect US traders from the foreign companies that are soliciting American traders without obtaining a proper registration. Today, the US regulatory watchdog launched the RED List of Forex/binary brokers on its SmartCheck platform.

The list consists of 19 companies as of today. The majority of them (15) are various binary brokers. Three are Forex brokers: Forex-Metal, FX Choice, and Trader’s Way. And one is the account management site (Scion Forex).

CFTC's SmartCheck

Tim Massad, the current Chairman of the Commodity Futures Trading Commission, said that the aim of the list is protect traders from the ‘bad actors’. If a company is not registered, there is not much CFTC or NFA can do with the company in case it turns scam on its customers. On the other hand, complying to US regulatory rules is very difficult and results in trading conditions that can be seen as less desirable by many Forex traders.

If you are a US trader, will CFTC warnings stop you from registering with a foreign FX company? Do you believe in CFTC’s protection of retail Forex traders? Please let us know via the commentary form below.

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