National Futures Association (NFA)
The National Futures Association (NFA) is a self-regulatory organization (SRO) for the U.S. derivatives industry, including futures, options, and retail off-exchange forex. Working closely with the Commodity Futures Trading Commission (CFTC), the NFA ensures fair practices, financial transparency, and investor protection in the U.S. forex market.
The NFA ensures a highly secure trading environment for U.S. forex traders through consistent monitoring, compliance enforcement, and public transparency. When choosing a forex broker in the U.S., always verify their NFA membership for peace of mind.
(As set in coordination with CFTC):
- 50:1 for major currency pairs
- 20:1 for minor and exotic pairs
The NFA’s responsibilities include:
- Registering and monitoring U.S. forex brokers.
- Conducting audits and enforcing compliance.
- Providing public access to broker information via the BASIC tool.
- Issuing fines, bans, or suspensions for violations.
- Visit the NFA BASIC Portal.
- Enter the broker’s name or NFA ID.
- Review membership status, registration type, and disciplinary history.
- Minimum Capital Requirements: $20 million for forex dealer members (FDMs).
- Daily Financial Reporting: Regular reports and position disclosures.
- Segregation of Client Funds: Client capital must be held in segregated accounts.
- Transparent Disclosures: All fees, risks, and terms must be clearly presented to clients.
- Ad Compliance: Marketing materials must be reviewed for accuracy and fairness.
Advantages
- High regulatory and operational standards.
- Comprehensive public database for broker verification.
- Strict enforcement and disciplinary actions.
- Coordination with CFTC ensures double-layered regulation.
Limitations
- Limited broker options in the U.S. market.
- Strict marketing, leverage, and hedging rules.
- FIFO (First In, First Out) rule applies.
Country
United States
Established
1982
Contact
+1 312 781 1300
Complaint bodies
National Futures Association (NFA), Commodity Futures Trading Commission (CFTC)
Hotline
+1 800 621 3570
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.