The Commodity Futures Trading Commission (CFTC) has warned the public about brokers that are offering their services without being registered.
The RED list of the CFTC contains investment services providers that are providing their services to the residents of the United States of America without being registered and therefore allowed to do so. The CFTC advises caution when dealing with these companies.
The newest additions to the RED lists are:
- Allegra Markets
- IDB Traders/Baltic Concert LLP
- Capital 245
- MM Financial Experts
- Omega Crypto
- Crown Finance
- Omega Capitals
- Platin CFD
- Easy Line Pro
- Richmond FG
- F1 Trade
- Top Option 360
- FX Dealer
- Trade GF
- Turnkey Forex
- Global Capital Options
- VIP Businesses
- Grand Tradefx
- Wellington INV/Bali Limited LTD
All these binary options and Forex brokers are located outside the United States. Most often they are located in exotic locations where there is no or very little financial regulation. We have found that some of these brokers provide fake addresses.
It is important to know that with unregulated brokers you cannot be sure who are you dealing with. These companies are not under control of independent authorities and they basically can do what they want. The percentage of scams is much higher among unregulated companies than among the one that are licensed.
And since deposits are not protected in any way with unregulated brokers, it is easy to lose money with them.
You have to understand the risks and prepare a good strategy before trading with real money.