Commodity Futures Trading Commission (CFTC)
Avoid Unregistered Binary Options Trading Platforms
The CFTC says a binary options platform doing business in the United States and soliciting money from U.S. residents that is not registered with the CFTC or SEC is likely fraudulent.
Regulators in several countries describe firms that are not registered or authorised as a risk in their own right. This page summarises what the CFTC, Japan's FSA, the FCA, ASIC and the Canadian Securities Administrators say, without naming any firm.
United States: CFTC
In published advisory materials, the Commodity Futures Trading Commission (CFTC) addresses unregistered binary options trading platforms. The CFTC pages carry no date in the text reviewed. In its guidance on off-exchange trades, the CFTC explains that many offshore companies engaged in commodity binary options transactions are not registered with the CFTC, and the page tells investors to avoid them.
On platform oversight, the CFTC states that a binary options platform doing business in the United States and soliciting money from U.S. residents that is not registered with the CFTC or SEC is likely fraudulent. The agency explains: "Registration is not a guarantee against fraud, but it can help you weed out those operating outside of U.S. law." Furthermore, the CFTC notes 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. For more details on the American regulatory framework, see our guide to binary options in the United States.
Japan: FSA
The Financial Services Agency of Japan (FSA) published guidance on binary options trading on 28 February 2020, updated on 28 June 2024. The FSA states that carrying on binary options trading as a business with investors resident in Japan requires registration as a financial instruments business, and carrying on financial instruments business without registration under the Financial Instruments and Exchange Act is illegal.
The Japanese authority explicitly highlights cross-border activity, stating that even a firm holding a financial instruments licence overseas is prohibited from carrying on financial instruments business with persons resident in Japan without registration in Japan. The FSA warns that if you trade with an unregistered firm, pursuing that firm is extremely difficult even if trouble arises. The FSA, together with Local Finance Bureaus, publishes lists of entities it has warned for operating without registration. Read more about the Japanese framework in our guide to binary options in Japan.
United Kingdom: FCA
In the United Kingdom, following its permanent restriction confirmed on 29 March 2019, the Financial Conduct Authority (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."
The FCA also alerts consumers to deceptive impersonation tactics. The regulator states: "Remember, some firms pretend to be authorised firms, so always use the contact details on the Firm Checker." In addition, regarding firms operating without permission, the FCA notes: "Unauthorised firms often change their names, and we may not be aware of it yet." For steps on verifying UK credentials, see how to check whether a broker is regulated and our guide to binary options in the United Kingdom.
Australia and Canada
In Australia, where ASIC prohibited the issue and distribution of binary options to retail clients effective 3 May 2021, the regulator stressed strict enforcement consequences: "Civil and criminal penalties apply to contraventions of the product intervention order." Learn more in our guide to binary options in Australia.
In Canada, the Canadian Securities Administrators (CSA) issued a statement on 26 April 2017 regarding regulatory oversight: "Registration helps protect investors because regulators will only register firms and individuals that are properly qualified." The CSA confirmed: "There are no registered individuals or firms permitted to trade binary options in Canada." For full provincial context, consult our guide to binary options in Canada.
Step-by-step checking guidance is in how to check whether a broker is regulated.
Frequently Asked Questions
Does CFTC registration guarantee a firm is safe?
The CFTC explains: "Registration is not a guarantee against fraud, but it can help you weed out those operating outside of U.S. law." The regulator also points out that while registration and a clean disciplinary record will not protect you from fraud, most scams involve unregistered entities, people and products.
What does Japan's FSA say about firms licensed overseas?
The FSA states that even a firm holding a financial instruments licence overseas is prohibited from carrying on financial instruments business with persons resident in Japan without registration in Japan, and warns that pursuing an unregistered firm is extremely difficult even if trouble arises.
What does the FCA say about firms offering binary options to UK retail consumers?
Under its permanent retail prohibition, the FCA states: "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."
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: Beware of Off-Exchange Binary Options Trades (no date in the text reviewed)
- CFTC: Avoid Unregistered Binary Options Trading Platforms (no date in the text reviewed)
- CFTC: Be Smart: Check Registration & Backgrounds Before You Trade (no date in the text reviewed)
- FSA: Notice on binary options trading (28 February 2020, updated 28 June 2024)
- FCA: Statement on permanent ban on binary options to retail consumers (29 March 2019)
- 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)
- ASIC: ASIC bans the sale of binary options to retail clients (media release 21-064MR)
- CSA: Canadian Securities Administrators statement (26 April 2017)
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.