Commodity Futures Trading Commission (CFTC)
The Commodity Futures Trading Commission (CFTC) is the primary regulatory body overseeing futures, options, and forex markets in the United States. Established in 1974, the CFTC's mandate is to foster transparent, competitive, and financially sound markets while protecting investors against fraud, manipulation, and abusive practices.
The CFTC ensures strong protections for U.S. forex traders through strict rules and compliance standards. Choosing a CFTC-regulated broker means you’re trading under one of the most robust regulatory frameworks in the world.
- 50:1 for major currency pairs
- 20:1 for minor currency pairs
These limits are strictly enforced to reduce risk exposure for retail traders.
The CFTC is responsible for:
- Overseeing forex trading activities within the U.S.
- Enforcing compliance with trading laws and ethical standards.
- Preventing fraudulent, deceptive, and manipulative practices.
- Protecting retail investors and ensuring financial stability.
- Visit the NFA BASIC Search Tool.
- Enter the broker's name or registration number.
- Confirm their status, registration type, and disciplinary history.
- Capital Requirements: Must maintain minimum net capital (currently $20 million for forex dealers).
- Segregation of Client Funds: Funds must be held in segregated accounts.
- Mandatory Membership: All brokers must be registered with both the CFTC and NFA.
- Strict Reporting Requirements: Regular audits and financial reports.
- Restrictions on Bonuses and Promotions: To protect consumers from misleading incentives.
Advantages
- High standards of investor protection.
- Strict enforcement of trading laws.
- Segregation of client funds.
- Limited leverage for retail traders to reduce risk.
Limitations
- Limited number of forex brokers operate under CFTC rules.
- Strict leverage rules may reduce trading flexibility.
- No hedging allowed (FIFO rule applies).
Country
United States
Established
1974
Contact
+1 866 366 2382
Complaint bodies
Commodity Futures Trading Commission (CFTC), National Futures Association (NFA)
Hotline
+1 866 366 2382
Complaint email
Last updated on: March 25, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.