Financial Conduct Authority (FCA)
Protect yourself from scams
The FCA says almost all financial services firms in the UK must be authorised or registered by it, and tells people to check a firm's details on its Firm Checker.
The FCA in the United Kingdom and the CFTC in the United States each tell people to check that a firm is authorised or registered before dealing with it. This guide summarises what the FCA's Firm Checker pages and the CFTC's registration page say, and what the 2013 SEC and CFTC alert advises for binary options platforms.
What Regulators Tell You to Check
Financial regulatory authorities instruct members of the public to examine official registers before engaging with financial firms. The CFTC urges people to confirm that a firm or person is registered with the CFTC before trading, and recommends searching the NFA BASIC database. The CFTC notes that registration and a clean disciplinary record will not protect you from fraud, but most scams involve unregistered entities, people and products.
In a 2013 alert published on 6 June 2013, the SEC and CFTC outlined specific verification checks for binary options trading platforms. The alert directs investors: "Check to see if the binary options trading platform is a designated contract market." The alert also instructs: "Check to see if the binary options trading platform itself is registered as an exchange." In addition, the alert's checks include whether the platform has registered the offer and sale of the product with the SEC.
Other countries have their own registers; see the regulator named on the relevant country guide in our country-by-country legal guides. You can also review common red flags in our guide to binary options scam warning signs.
United Kingdom: FCA Firm Checker
The FCA guidance page "Protect yourself from scams", first published on 8 August 2017 and last updated on 19 January 2026, states: "Almost all financial services firms in the UK must be authorised or registered by us." On its warning list page, first published on 2 April 2016 and last updated on 30 June 2026, the FCA also states: "Almost all financial firms in the UK must be authorised or registered by us."
The FCA explains that you can use the FCA Firm Checker to find out whether a firm is authorised and has permission for the service it is offering you. Investors should check that the firm reference number (FRN) and contact details they were given match the details on the FCA Firm Checker. The FCA warns: "Remember, some firms pretend to be authorised firms, so always use the contact details on the Firm Checker." The FCA also notes: "Unauthorised firms often change their names, and we may not be aware of it yet."
In addition, under its permanent retail product intervention confirmed on 29 March 2019, the FCA stated: "As the sale of binary options to retail consumers is now prohibited, any firm offering binary options services to retail consumers is likely to be a scam." Detailed information on UK legal restrictions can be reviewed in our guide to binary options in the United Kingdom.
United States: CFTC and NFA BASIC
The CFTC page "Be Smart: Check Registration & Backgrounds Before You Trade" carries no date in the text we reviewed. The CFTC states: "Some firms or individuals may be exempt from registration or may not be regulated by the CFTC." The CFTC adds: "In some cases, such persons appear in the NFA BASIC database with an indication of the basis for the exemption."
For more on the United States, see our guide to binary options in the United States.
If You Cannot Find the Firm
If a firm does not appear on the relevant register, treat that as a reason to stop and check further before sending money.
The FCA states that if you cannot find a firm on the Firm Checker, the FCA gives the phone number 0800 111 6768. In the United States, the CFTC advises: "If the firm or person cannot be found in the NFA BASIC database, ask them why." If you believe an unauthorised firm or fraudulent scheme has approached you, see our walkthrough on how to report a binary options scam.
Frequently Asked Questions
Does registration guarantee that a firm is safe from fraud?
The CFTC explains that registration and a clean disciplinary record will not protect you from fraud, but points out that most scams involve unregistered entities, people and products.
How does the FCA suggest verifying UK firm contact details?
The FCA states that you should check that the firm reference number (FRN) and contact details given match the FCA Firm Checker, and advises: "Remember, some firms pretend to be authorised firms, so always use the contact details on the Firm Checker."
What should you do if an entity cannot be found on the NFA BASIC database?
The CFTC advises: "If the firm or person cannot be found in the NFA BASIC database, ask them why."
Does regulatory guidance address individual 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
- FCA: Protect yourself from scams (first published 08/08/2017; last updated 19/01/2026)
- FCA: Warning List of unauthorised firms (first published 02/04/2016; last updated 30/06/2026)
- FCA: Statement on permanent ban on binary options to retail consumers (29/03/2019)
- CFTC: Be Smart: Check Registration & Backgrounds Before You Trade (no date in the text reviewed)
- SEC/CFTC: Investor Alert: Binary Options and Fraud (6 June 2013)
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.
This page summarises what the regulators' published guidance says. It does not address whether an individual could face liability. Seek independent legal advice.