NFA registered Forex brokers

 

The National Futures Association (NFA) is a self-regulatory organization reporting to the U.S. Commodity Futures Trading Commission (CFTC). The NFA focuses on overseeing and regulating the U.S. futures industry, and many forex brokers, such as FXCM, Forex.com and Oanda choose to register with it for their U.S. operations.

 

NFA’s main scopes of operations are fraud and abuse prevention, handling dispute resolution and drafting regulatory frameworks. NFA-registered brokers are obliged to maintain a net capital of at least $20 million to guarantee customers’ positions, which makes them extra safe to invest with.

 

 

Brokers that are registered with the NFA have to comply with an extensive set of rules. Unfortunately these rules are often limiting from traders' prospective but there is no way aroud them. 

 

The most important NFA rules concern trading strategies, leverage and hedging:

 

 

- The FIFO Rule: The FIFO (first in, first out) policy requires traders to close their oldest trades first whenever they have more than one position open on the same currency pair. Brokers who are not registered in the USA or with the NFA are not obliged to obey the FIFO rule.

 

- Hedging is also not allowed in the USA and NFA-authorized brokers are to prevent it.

 

- The third major difference between U.S. brokers and the ones registered in other parts of the world is the leverage requirement. NFA mandates brokers to offer a leverage of up to 1:50, whereas European and other brokers can offer you leverage as high as they want (some brokers would go as high as 1:2000).

 

 

Below is a list of NFA/CFTC registered forex brokers. 

 



NFA registered Forex brokers

Broker Regulated Min.deposit Leverage Spread Promotion Review
$1 1:50 0.9 N/A Review
$50 1:200 (1:50 in US) 1.1 Review
$2000 1:50 Review
$10 000 1:50 1 Review
Forex

Related News

FXCM gets $7 mln fine from CFTC, sells US business to Gain Capital

Feb 07 2017 08:31:03 Jonathan Smith in Brokers

In a surprising twist of regulatory fate, FXCM – the largest US retail forex broker – got banned from doing business there and was fined $7 million by the CFTC, all in the fateful afternoon of February 6, 2017. The reason: misleading customers and regulators. Read more

US forex traders to have greater transparency with respect to execution data

Jan 06 2017 08:34:24 Jonathan Smith in Market

The National Futures Association (NFA), the self-regulatory organization overseeing the activities of the US forex brokers, said its new rules on disclosure of transaction data have been approved by the Commodity Futures Trading Commission (CFTC) and will come into effect as of March 31, 2017... Read more

NFA orders US forex brokers to raise margin requirements for GBPUSD

Nov 07 2016 15:27:54 Stanimir Zhelev in Market

The US National Futures Association (NFA), the self-regulatory organization overseeing the activities of the US forex brokers, said it is raising the required minimum security deposit for transactions with the GBP from 2% to 5%. Read more

NFA fines FXDD $500,000 for inadequate anti-money laundering program

Dec 13 2014 12:05:11 Stanimir Zhelev in Brokers

National Futures Association (NFA) has fined New York firm FXDirectDealer LLC $500,000 for inadequate anti-money laundering program and failure to supervise. The fine comes seven months after FXDD US retail forex acccounts were acquired by FXCM. Read more

ILQ to compensate its US clients over forex hedging

Aug 14 2014 08:46:48 Yassen Vassilev in Brokers

Institutional Liquidity (ILQ) LLC, an ex-US forex broker, which terminated operations in April 2014, has agreed with NFA to compensate all their former US clients who have suffered losses due to hedging. Hedging is prohibited in US. Read more

Forex