Today, a substantial number of binary options are traded through online trading platforms. These web sites often do not comply with U.S. regulatory requirements. In fact, the increase in the number of these platforms has led to an increase in binary-option related fraud complaints to the CFTC.

Complaints include scams in which binary options trading firms claim they deposited money in an investor's account but did not. They might deny requests to return funds or even require hidden fees to return assets. Many online binary options trading platforms overstate the average return on investment or even manipulate past charts to make investing appear more promising than it really is. Some binary options trading platforms may offer a bonus for opening or adding to an account. The bonus is a monetary amount added to the deposit under the condition that the investor subsequently makes a specific minimum amount of trades before withdrawing any funds.

Binary options are an...

You just realized you were scammed. That trade or investment you made was a fraud. Now what do you do?

The sooner you take action, the better you can protect yourself and help others. Getting all of your stolen money back may prove difficult, but recovery is about more than just regaining your losses. These six steps can help you guard against further theft, report the fraud, and start the recovery process. They are for informational and educational purposes only and should not be considered legal or investment advice or a comprehensive list of solutions. You can also conduct these steps on your own at little or no cost. However, if you feel you need legal help, consult an attorney.

Your first steps should focus on stopping further losses and gathering the information you have about the scheme and the perpetrators while it is still fresh. Then, report the crime as soon as possible. The sooner you report, even if you think the matter is insignificant, the easier...

List of Foreign Entities That Have Been Identified as Acting in a Capacity That Appears to Require Registration but Are Not Appropriately Registered With the Commission

The CFTC frequently receives investigative leads and questions from the public about foreign entities that solicit and/or accept funds from U.S. residents at a retail level. For example these leads and questions can relate to, among other things, foreign entities that engage in foreign currency (“Forex”) in a capacity similar to Retail Foreign Exchange Dealers (“RFEDs”), Introducing Brokers, Commodity Trading Advisors or Commodity Pool Operators and binary options. Many of these foreign entities are acting in a capacity that requires them to be registered with the CFTC.

If a foreign entity is registered with the commission, then it is subject to CFTC regulations and oversight that apply to registrants. Generally, foreign entities that solicit you to trade are required to...

The advertisements seem too good to pass up. They tout high returns coupled with low risks from investments in foreign currency (forex) contracts. Sometimes they even offer lucrative employment opportunities in forex trading.

Washington, D.C. — The Commodity Futures Trading Commission today announced that LabCFTC will present Empower Innovation 2020, a series of interactive virtual events throughout the fall. The three-part series will facilitate a dialogue among innovators, regulators, market participants, and the public around cutting-edge fintech innovation. In light of the COVID-19 (coronavirus) pandemic, the Empower Innovation 2020 series will be held in lieu of the 2020 Fintech Forward conference.

LabCFTC will also announce the winner of Project Streetlamp, the competition LabCFTC launched in April under the Science Prize Competition Act, at the November Empower Innovation 2020 event. [See CFTC Press Release No. 8154-20]

“Encouraging innovation and enhancing the regulatory experience for market participants is essential to what we do at the CFTC,” said CFTC Chairman Heath P. Tarbert. “As our markets adapt in the wake of COVID-19, so too must we innovate and adapt. I am...

You just realized you were scammed. That trade or investment you made was a fraud. Now what do you do?

The sooner you take action, the better you can protect yourself and help others. Getting all of your stolen money back may prove difficult, but recovery is about more than just regaining your losses. These six steps can help you guard against further theft, report the fraud, and start the recovery process. They are for informational and educational purposes only and should not be considered legal or investment advice or a comprehensive list of solutions. You can also conduct these steps on your own at little or no cost. However, if you feel you need legal help, consult an attorney.

Your first steps should focus on stopping further losses and gathering the information you have about the scheme and the perpetrators while it is still fresh. Then, report the crime as soon as possible. The sooner you report, even if you think the matter is insignificant, the easier...

The advertisements seem too good to pass up. They tout high returns coupled with low risks from investments in foreign currency (forex) contracts. Sometimes they even offer lucrative employment opportunities in forex trading.

The Forex market is volatile and carries substantial risks. It is not the place to put any money that you cannot afford to lose, such as retirement funds, as you can lose most or all it very quickly. The CFTC has witnessed a sharp rise in Forex trading scams in recent years and wants to advise you on how to identify potential fraud.

You just realized you were scammed. That trade or investment you made was a fraud. Now what do you do?

The sooner you take action, the better you can protect yourself and help others. Getting all of your stolen money back may prove difficult, but recovery is about more than just regaining your losses. These six steps can help you guard against further theft, report the fraud, and start the recovery process. They are for informational and educational purposes only and should not be considered legal or investment advice or a comprehensive list of solutions. You can also conduct these steps on your own at little or no cost. However, if you feel you need legal help, consult an attorney.

Your first steps should focus on stopping further losses and gathering the information you have about the scheme and the perpetrators while it is still fresh. Then, report the crime as soon as possible. The sooner you report, even if you think the matter is insignificant, the easier...

Washington, D.C. — The Commodity Futures Trading Commission today announced that LabCFTC will present Empower Innovation 2020, a series of interactive virtual events throughout the fall. The three-part series will facilitate a dialogue among innovators, regulators, market participants, and the public around cutting-edge fintech innovation. In light of the COVID-19 (coronavirus) pandemic, the Empower Innovation 2020 series will be held in lieu of the 2020 Fintech Forward conference.

LabCFTC will also announce the winner of Project Streetlamp, the competition LabCFTC launched in April under the Science Prize Competition Act, at the November Empower Innovation 2020 event. [See CFTC Press Release No. 8154-20]

“Encouraging innovation and enhancing the regulatory experience for market participants is essential to what we do at the CFTC,” said CFTC Chairman Heath P. Tarbert. “As our markets adapt in the wake of COVID-19, so too must we innovate and adapt. I am...

Washington, D.C. — The Commodity Futures Trading Commission today announced an award of approximately $9 million to a whistleblower whose specific, credible, and timely tip led the Commission to open an investigation and ultimately bring a successful enforcement action. This award is one of the five largest granted in the history of the CFTC Whistleblower Program.

“We recognize that often whistleblowers come forward to report misconduct at great personal and professional risk,” said CFTC Director of Enforcement James McDonald.  “Cases like this serve as a reminder that the Whistleblower Program can reward that courage in a very real way, helping to soften the blow of any adverse consequences those whistleblowers might face.”

“Whistleblowers like the individual receiving the award today provide a valuable public service,” added Whistleblower Office Director Christopher Ehrman. “We encourage others to come forward with information regarding possible...

You just realized you were scammed. That trade or investment you made was a fraud. Now what do you do?

The sooner you take action, the better you can protect yourself and help others. Getting all of your stolen money back may prove difficult, but recovery is about more than just regaining your losses. These six steps can help you guard against further theft, report the fraud, and start the recovery process. They are for informational and educational purposes only and should not be considered legal or investment advice or a comprehensive list of solutions. You can also conduct these steps on your own at little or no cost. However, if you feel you need legal help, consult an attorney.

Your first steps should focus on stopping further losses and gathering the information you have about the scheme and the perpetrators while it is still fresh. Then, report the crime as soon as possible. The sooner you report, even if you think the matter is insignificant, the easier...

Off-exchange foreign currency trading, also called forex, is very risky. Beyond the general volatility between currency prices that any trader could face, fraud is prevalent in the market. In 2010, the then Chairman of the Commodity Futures Trading Commission (CFTC), Gary Gensler, deemed forex the largest area of retail fraud the CFTC oversaw. As technology has evolved, so have scams. Promoters once lured investors with the right to "control" a large amount of foreign currency with an initial payment of only a fraction of the cost. Today's fraudsters often steal investors' money using promises of fool-proof automated trading systems or "robots," claiming that their systems can earn you vast wealth even while you sleep.

Before working with any person or firm to trade in commodity futures, commodity pools, options, forex, or other derivatives, verify that the entity is properly registered with the CFTC.  The Commodity Exchange Act requires certain firms and individuals to be registered with the CFTC.  Registration and examination of intermediaries is conducted on behalf of the CFTC by the National Futures Association (NFA) under the supervision of the CFTC.

The mission of the Commodity Futures Trading Commission’s (“CFTC”) is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation. As part of this mission, the CFTC regulates a variety of individuals and organizations. These include futures commission merchants, commodity pool operators, commodity trading advisors, retail foreign exchange dealers, introducing brokers, designated contract markets, foreign boards of trade, swap dealers, and other entities and individuals. To promote market integrity, the CFTC surveils the derivatives markets for various abuses, and holds wrongdoers accountable.

Increasingly, fraudsters use a variety of social engineering, fake profiling, and manipulative techniques to ensnare their victims. Fraud tactics regularly employ common keywords and phrases. With this information, there is an opportunity to utilize modern technology as a tool to augment traditional, manual efforts and to identify bad...

Washington, D.C. — The Commodity Futures Trading Commission at its open meeting today approved a final rule on the cross-border application of certain swap provisions under the Commodity Exchange Act (CEA). This completes another principal rulemaking implementing the Dodd-Frank Act, which was enacted 10 years ago this week. Just yesterday, the Commission approved a final rule on capital requirements for swap dealers and major swap participants, closing out all required rulemakings under Section 731 of the Act. [See CFTC Press Release No. 8210-20] The Commission today also approved an Amendment Order regarding European Union trading facilities.

Final Rule: Cross-Border Application of the Registration Thresholds and Certain Requirements Applicable to Swap Dealers and Major Swap Participants

On a 3-2 vote, the Commission adopted a final rule that addresses the cross-border application of the swap dealer (SD) and major swap participant (MSP) registration thresholds...

You just realized you were scammed. That trade or investment you made was a fraud. Now what do you do?

The sooner you take action, the better you can protect yourself and help others. Getting all of your stolen money back may prove difficult, but recovery is about more than just regaining your losses. These six steps can help you guard against further theft, report the fraud, and start the recovery process. They are for informational and educational purposes only and should not be considered legal or investment advice or a comprehensive list of solutions. You can also conduct these steps on your own at little or no cost. However, if you feel you need legal help, consult an attorney.

Your first steps should focus on stopping further losses and gathering the information you have about the scheme and the perpetrators while it is still fresh. Then, report the crime as soon as possible. The sooner you report, even if you think the matter is insignificant, the easier...