Reports of Binary Options and Forex fraud are reaching all-time highs as regulators and government agencies like the U.S Commodity Futures Trading Commission (“CFTC”) continue to receive hundreds of complaints every month.
With damages from Binary Options fraud totaling in the millions of dollars in the United States alone, Investors should be extra cautious when investing. Recently the CFTC issued a Fraud Advisory concerning Binary Options due to the increased number of victims and damages 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.
While some binary options are listed and traded on legitimate and registered exchanges, much of binary options trade via offshore Internet-based trading platforms that by and large do not comply with U.S. regulatory financial requirements. This means that in addition to the general risks associated with the purchase or sale of binary options, there may be a higher risk of financial and investment fraud based upon the unregulated online trading platforms in use.
Earlier this year, the CFTC amended its “RED” list (Registration Deficient) as part of its ongoing efforts to curb fraud and enhance investor protection. As part of the addition, 71 deficient and foreign registered entities where added to the RED list. CFTC registration facilitates accountability to the public and allows the CFTC to closely examine the financial records and conduct of registered firms. It is important to understand, however, that CFTC registration is not a guarantee against fraud, mismanagement or investments losses.
Binary Option websites are usually operated by individuals overseas and outside the CFTC’s jurisdiction thus making fraud potentially more likely.
The Law Firm of David Chase represents nationwide victims of investment fraud, including binary option fraud, and is investigating potential avenues of the recovery of investment losses.
The 71 foreign entities added to the RED List are:
| 10Markets | Eagle Gate | Omega Options |
| 1Billion Forex | eXbino | Option Giants |
| 33Option | Finpari | Option King |
| AAFX Trading | FinPro Trading | Options24hours |
| Advanced Options | Forex Ltd. | Oracle Stone |
| Allgo Trading | Forex Ukraine | Planet Option |
| Anthony, John | FX Moneyworld | Price Markets Brokerage |
| AOS Holding | FXGM | Profitable Forex Advisors |
| ASK Options | FXT Swiss | Rbinary |
| AXI Trader | FXUmarkets | Safe Options |
| Azbinary | GFM Trader | Starling Capital |
| Barkley Capital | Glenridge Capital GMR | Stichting WST Capital |
| Bartle Investment Group | Forex Goptions.com | Tall Options |
| BinaryRoom365 | Iforex | Trades Capital |
| Binex Markets | Inside Option | TradeThunder |
| BitVC | Instant Options | TradeWiseFX |
| BoursoPro | Int’l Brokers Assn Mkts | uTrader |
| BoursoTrade | GT Options | Vision Binary |
| Byrix Financial Investments | Janus Options | Weathika |
| Capital Bank Markets | London Binary Option | WinOptions |
| Capital Trade House | Market Options | Wynn Finance |
| Cherry Trade | MarketsWorld | |
| Copyprofitshare.com | MercerFX | |
| CT Option | MFX Brokers | |
| Empire Options | Morton Finance |
If you have questions about your ability to recover your investment losses, please contact David Chase for a consultation at david@davidchaselaw.com or toll-free at (800) 760-0912.
