CFTC slams 14 forex, binary option brands over false registration claims

abdelaziz Fathi

The Commodity Futures Trading Commission (CFTC) has come down hard on 14 FX and binary options platforms for falsely claiming registrations with the US regulators.

According to the CFTC, many of these foreign entities are acting in a capacity requiring them to be registered with a federal agency. Registration allows the watchdog to provide greater security and oversight of the industry by examining whether firms meet minimum financial standards as well as disclosure, reporting, and recordkeeping requirements.

The US derivatives regulator identified 12 binary option brands that fraudulently touted to retail investors that they sell regulated products based out of New York. However, none of these entities have ever registered as a futures commission merchant (FCM), the agency said.

According to the regulatory manifest, the following brands have published misleading claims of having CFTC registration:

  1. Tradingforexpay
  2. Cryptofxtrader
  3. Bitfxprofit
  4. Globalnationfx
  5. BinanceFxTrade
  6. MaxForexOption
  7. ProCryptoMinners
  8. ProFX-Capitals
  9. Smarter Signals
  10. Prime Expert Trade
  11. Star Fx Pro
  12. Excotradeoptions

Additionally, the CFTC’s complaint further charges Climax Capital FX and of offering financial services in the US without being authorized to do so. Both companies fraudulently sought clients by lying about their respective market position and investment licenses. In particular, their websites referenced CFTC registration or National Futures Association (NFA) membership.

To cover up their fraud, Climax Capital FX says it maintains offices in Walsall and Houston, while is allegedly located in Arkansas. The regulatory body, however, states that the companies’ US addresses are invalid, although they may be using the details of legitimate entities to mislead investors.

“In these two complaints, the false claims are similar. Each complaint alleges that each entity falsely claimed that it “is a registered FCM and RFED with the CFTC and member of the [NFA]” and provided the same NFA ID number. As alleged in the complaints, these entities have never been registered with NFA in any capacity, and according to an NFA database, the NFA ID number identifies an individual who was once registered with the CFTC but has been deceased since 2009,” the statement reads.

Right now, the CFTC is aiming for trading and registration bans and injunctions against further violations of its regulations and federal commodities laws.

The CFTC has been active recently in its cleanup of the forex space with charges being brought against a dozen of brokers and trading apps. The crackdown was even extended to regulated platforms, having hit OANDA Corporation with a $500,000 fine for failing to adhere to certain regulations, including that it failed to meet minimum capital requirements.

Gain Capital UK was also ordered to pay a civil penalty of $250,000 over allegations it signed up US investors to its FX trading platform.


Read this next

Executive Moves

Scope Markets promotes James Hughes to head of marketing

Belize-based FX and CFDs brokerage Scope Markets has promoted James Hughes, who until recently was its head of brand, to take on an expanded role as the company’s global head of marketing.

Retail FX

Fraudsters clone Financial Commission’s website, two ex-members under suspicion

The Financial Commission, an industry-specific dispute resolution service that caters to the financial services industry, today announced that it believes a clone website has been impersonating its membership roster.

Retail FX

CMC Markets warns of operational challenges in Q1

CMC Markets PLC (LSE:CMCX) said in a trading update for the fiscal year 2023 that February and March posed a more challenging environment with lower equity volumes and a higher proportion of lower margin institutional trading activity.


Why Is Digital PR So Important for Financial Service Providers? Buzz Dealer’s CEO Uri Samet with the Answers

Digital PR is all about spreading your message faster, wider, and stronger in the online world, through proper SEO, link-building, and organic and paid social media work.

Inside View

Why And How Are Virtual Cards Disrupting The Finance Industry

Virtual cards have the potential to revolutionize the finance industry by providing faster and more secure payments, wider acceptance, and eco-friendliness.


Sweat Economy’s Oleg Fomenko on upcoming launch of Move-to-Earn app in the US

With the crypto winter’s biggest hurdles seemingly behind us as the prices of Bitcoin et al. climb the charts again, the Web3 economy is preparing for the next phase.

Industry News

OptionMetrics acquires Woodseer to add dividend forecast data for equities

“The addition of Woodseer’s product suite will enhance our ability to serve financial market stakeholders and academic institutions in their analysis of equity market performance and risk.”

Digital Assets

Metacade raises over $14.7M as presale set to close in 72 hours

Metacade, one of the most exciting GameFi ventures of 2023, has now raised over $14.7m as the presale goes into its final hours. With over 90% sold, the project expects to sell out ahead of their scheduled closing time, set for Friday 31st March at 23:59 Pacific Time. 

Digital Assets

Coinme launches Circle’s USDC on Stellar network

“By enabling USDC on Stellar in the Coinme wallet, anyone with cash can now utilize the Stellar blockchain to access a fully-backed dollar digital currency. People can now swap their cash for USDC on Stellar and send it in seconds for the cost of a penny.”