NFA&CFTC Registered (US) Forex Brokers
About NFA & CFTC
- National Futures Association (NFA) is the self-regulatory organization(non-profit, founded in 1982) for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency (forex) and OTC derivatives (swaps). NFA’s mission is to safeguard market integrity and protect investors. NFA is financed exclusively from membership dues and assessment fees.
- Commodity Futures Trading Commission (CFTC) is the US government agency (founded in 1975) that protect market participants and the public from fraud, manipulation, abusive practices and systemic risk related to derivatives – both futures and swaps.
- NFA’s activities are overseen by CFTC.
NFA membership is mandatory for all forex brokers(including introducing brokers) in US.
NFA regulated brokers:
- Must follow strict rules set by NFA to ensures the safety of clients’ assets.
- Must have net capital of no less than $15 000 000 to guarantee client’s positions. This minimum raises to $20 000 000 starting from May 19th, 2009.
- Must report their account balances to NFA weekly.
- Must have comprehensive yearly audits.
Background Affiliation Status Information Center (BASIC) http://www.nfa.futures.org/basicnet/
Some NFA/CFTC rules
- Non-US brokers or brokers that are not registered in NFA are not allowed to accept US citizens as clients.(They can accept non-US citizens that live in US)
- Maximum leverage of a US forex broker can offer should be 50:1 on major currencies and 20:1 on minors since October 18th, 2010.
- US Forex brokers are not allowed to offer leveraged commodities and precious metal trading (including Gold & Silver) to retail clients.So they can only offer those on a 1:1 non-leveraged basis(requires substantially more margin).(Since July 15th, 2011, enforced by CFTC)
US Forex brokers with high leverage
US brokers usually offer a higher leverage to international clients with non-US accounts. They usually have international branches.
Brokers for US Traders:
Note: We don’t include IBs(introducing brokers) in the table.
|Broker||Type||Regulation||US clients||Mini account||Minimal Lot||Spreads||Lowest spreads EURUSD|
|Interactive Brokers(Visit)||ECN/STP||NFA, CFTC, FSA UK, IIROC, NYSE, FINRA, SIPC||yes||no||0.25||variable||>0.5|
|FXCM(Visit)||ECN/STP & DMA/STP||NFA, CFTC, FSA UK, ASIC||yes||$50||0.01||variable||>1.5 – Mini1 – Standard|
|OANDA(Visit)||MM||NFA, CFTC, FSA UK, FSA Dubai, IIROC, MAS Singapore||yes||$1||0.001 or less||variable||>0.9|
|FOREX.com(Visit)||MM||NFA, CFTC, FSA UK||yes||$250||0.01||variable||>1 – 1.5|
|MB Trading(Visit)||ECN/STP||NFA, CFTC, FINRA, SIPC, FSA UK||yes||$400||0.01||variable||>0.1 – 0.8|
Read More: All Forex brokers that accept US Clients