Best NFA Regulated Forex Brokers 2019

The fierce competition in the online trading industry has created space for many brokers. Regulation reduces the fears of having to deal with a non-compliant broker and reinsures the trader that the brokerage house operates a legitimate business.

Different jurisdictions have different rules. For example, regulating financial services in Australia is different than in Europe or in the United States. Therefore, when picking the broker to trade with, make sure you understand who the regulator is and what rules the broker must follow.

List of the Best Forex brokers, who are registered with NFA:

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 66-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Broker Type Regulation Minimum deposit Maximum leverage Minimal lot size Spreads EUR/USD
ATC Brokers ECN/STP, STP NFA, CFTC, FCA $5000 50 : 1 - Mini account
50 : 1 - Standard account
50 : 1 - ECN account
0.05 - Mini account
0.05 - Standard account
0.05 - ECN account
0.1 pips - Mini account
0.1 pips - Standard account
Forest Park FX DMA/STP, STP NFA, CFTC $1 50 : 1 - Mini account
50 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.2 pips - Mini account
0.2 pips - Standard account
FOREX.com ECN/STP, Market Maker CIMA, NFA, CFTC, FCA, IIROC, ASIC, FFA Japan, MAS, SFC of Hong Kong $250 200 : 1 - Mini account
200 : 1 - Standard account
200 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1.5 pips - Mini account
1.5 pips - Standard account
Fortress Capital STP NFA, CFTC $1 50 : 1 - Mini account
50 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.6 pips - Mini account
0.6 pips - Standard account
Interactive Brokers ECN/STP NFA, CFTC, FCA, IIROC, NYSE, FINRA, SIPC $3000 50 : 1 - Mini account
50 : 1 - Standard account
50 : 1 - ECN account
0.25 - Mini account
0.25 - Standard account
0.25 - ECN account
MB Trading ECN/STP NFA, CFTC, FINRA, SIPC $400 50 : 1 - Mini account
50 : 1 - Standard account
50 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
0.1 pips - Mini account
0.1 pips - Standard account
0.1 pips - ECN account
OANDA Market Maker NFA, CFTC, FCA, IIROC, MAS $1 50 : 1 - Mini account
50 : 1 - Standard account
1.0E-5 - Mini account
1.0E-5 - Standard account
1.2 pips - Mini account
1.2 pips - Standard account
thinkorswim Market Maker NFA, SIPC, FINRA $1 50 : 1 - Mini account
50 : 1 - Standard account
0.1 - Mini account
0.1 - Standard account
2 pips - Mini account
2 pips - Standard account
TradeKing Market Maker NFA $500 50 : 1 - Mini account
50 : 1 - Standard account
0.1 - Mini account
1 - Standard account
1.7 pips - Mini account
1.7 pips - Standard account
TradeStation Securities DMA/STP NFA, CFTC, FINRA, FCA $2000 100 : 1 - Mini account
100 : 1 - Standard account
0.1 - Mini account
0.1 - Standard account
1.6 pips - Mini account
1.6 pips - Standard account
ATC Brokers
AxiTrader
Back Bay FX
Capital Market Services – CMS Forex
Cobra Trading
CompassFX
eToroUSA
FastBrokers
FIPFX GLOBAL
Forex.com – Gain Capital Group
Fortress Capital
Futures Online
FX Renew
FXCM
FXDD
HotspotFX
IG Markets
IKON Global Markets
Interactive Brokers
MB Trading
OANDA
Rosenthal Collins Group
Spot Trader FX
thinkorswim
TradersChoiceFX
TradeKing
TradeStation Securities
NFA Forex brokers

Did we miss any Forex broker, who is a member of NFA?

Please suggest by adding a comment below.

Who is the NFA?

The National Futures Association (NFA) supervises the derivatives industry in the US, retail foreign exchange trading as well as over-the-counter derivatives.

Put it simply, anyone operating a business on the foreign exchange market in the United States needs an NFA license. Therefore, membership is mandatory and comes with some severe restrictions.

The NFA’s mission is to provide innovative regulatory programs and services that ensure futures industry integrity, protect market participants and help its Members meet their regulatory responsibilities. NFA’s activities are overseen by the Commodity Futures Trading Commission (CFTC), the government agency responsible for regulating the U.S. futures industry.

NFA Regulation
Source: www.nfa.futures.org

What is an NFA Regulated Broker?

An NFA regulated broker must obey many rules and keep high standards to be able to operate on the competitive US markets. For instance, part of the regulated process, the broker must prove its financial stability.

NFA requires no less than $20 million in operating capital, making sure that the broker can cope with periods of high volatility and many redemptions (withdrawals). Brokers are required to segregate clients’ funds from their own operating capital.

The NFA license is a statement that the broker is attempting to operate a fully compliant business in the United States.

How a Broker Becomes NFA Regulated?

Becoming NFA regulated is a natural process if the broker meets the requirements. The registration process may start online and, once awarded a license, constant monitoring is the norm.

Brokers need to provide weekly financial reports regarding the cost of operation, account balances, accurate representation of facts, and so on. Even more, brokers must submit annual audit reports too.

How NFA Regulation Protects You?

  • Punishes illegal activities – there’s no room for fraud or illegal schemes, regulators operate to protect clients from such occurrences.
  • Segregated funds – deposits are held separately from operating capital
  • Professional, problem-solving attitude – conflicts rarely escalate to the point where NFA must intervene.
  • Safe trading environment – transparency is vital to building trust with your broker – NFA regulated entities try to create a safe environment for their clients.

When you trade with NFA broker, what does this mean to you as a trader?

  • Serious businesses with transparent financial operations – these are companies who became members of the National Futures Association.
  • NFA regulated brokers follow strict standards and procedures implemented by NFA, which ensures the safety of trader’s assets.
  • NFA regulated brokers cannot use the client’s funds to carry out their operation activities. They must back up all customer positions with their own capital or carry them over to the Interbank market. Thus NFA regulated brokers are companies with large and sufficient financial assets.
    (Nowadays, NFA registered brokers are required to have net capital of no less than $15 000 000 to guarantee their client’s positions. This minimum raises to $20 000 000 starting from May 19th, 2009).
  • At the end of each week, NFA registered Forex brokers report their account balances to the NFA. Each year these brokers are subject to comprehensive yearly audits.
  • Forex brokers registered with NFA also have licensed and specially trained staff.

And of course, when comparing a regulated and a non-regulated broker, the regulated broker always wins!

To check if your Forex broker is registered with NFA use Background Affiliation Status Information Center (BASIC)

For further information, check US Forex brokers list

Conclusion

While applying for an NFA license is easy, the process takes a long time and is quite expensive. For this reason, many brokers avoid NFA regulation by moving their operations to other jurisdictions or give up serving US customers altogether.

A broker regulated by the NFA maintains a professional attitude towards its customers and quickly finds a solution to any problems. If not, the NFA will look to intervene as a mediator and severely punishes illegal activities, if any.

 


FAQ’s

Is NFA the same with CFTC?

No. They are two distinct regulators for the US market but have many shared services.

Is hedging allowed with NFA regulated brokers?

No. In the United States, hedging is viewed as increasing the risk associated with trading.

Is it safe to deposit funds with an NFA regulated broker?

Yes. Funds’ safety is paramount to any regulator, one of the most stringent conditions for the broker to meet.

Is the FIFO rule enforced?

Yes. The First In First Out condition is mandatory under the NFA regulation.

 

 


For more regulated brokers by highly respected authorities see below:

 

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