Check Registration Before You Trade: What the CFTC Says

Registration is one of the few facts about a firm that you can check yourself, outside the firm's own website. This page summarises a CFTC page on registration checks in the United States. The page does not mention binary options, and this page does not assess any firm or tell you where any firm is registered.

Why Registration Matters

The CFTC page, which shows no date, states: "The Commodity Exchange Act requires certain firms and individuals to be registered with the CFTC." Whether a given firm needs to be registered depends on what it does and where, a question for the regulator, not for this site.

What to Do If a Firm Cannot Be Found

The CFTC says: "If the firm or person cannot be found in the NFA BASIC database, ask them why." Asking is a first step, and a vague or evasive answer is information in itself. The CFTC adds: "Don't believe claims you cannot independently verify, and don't spend money on advice from unregistered advisors or brokers."

Claims of Exemption

Another US regulator, FINRA, warns that scammers might claim an investment is exempt from registration, which raises the risks immensely; see pressure and secrecy red flags.

Using This With Other Checks

Registration in one country says little about whether a firm may serve customers in another. For the United States position on binary options, see our guide to binary options in the United States. For checking steps in general, read how to check whether a broker is regulated, binary options regulator list by country and unregulated binary options brokers: risks regulators describe.

Frequently Asked Questions

Who must be registered with the CFTC?

The CFTC states: "The Commodity Exchange Act requires certain firms and individuals to be registered with the CFTC."

What does the CFTC suggest if a firm is not in the database?

The CFTC says: "If the firm or person cannot be found in the NFA BASIC database, ask them why."

Should I trust claims I cannot check?

The CFTC advises: "Don't believe claims you cannot independently verify, and don't spend money on advice from unregistered advisors or brokers."

Does this page address whether an individual could face liability?

This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.

Sources and Official References

• CFTC: Be Smart: Check Registration & Backgrounds Before You Trade (no date shown on the page)

This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.