How do I check Broker regulation on NFA?

A popular saying in the financial industry: American regulation, industry leader. Compared with the world, the investment industry in the United States is relatively mature and standardized, and after several financial crises, the United States still enjoys the reputation of the most stringent supervision of the foreign exchange industry. The NFA is one of the most heavily regulated financial regulators in the world.

National Futures Association (NFA), the National Futures Association (NFA) is a futures industry self-regulatory organization established in 1976 according to the provisions of Section 17 of the Commodity Exchange Act of the United States, is a non-profit membership organization. It is the non-commercial independent regulator of futures and foreign exchange trading in the United States.

So, how to check the regulation in NFA?

The detailed steps are as follows:

1. Find its license /ID number (preferred) or name on the dealer's website;

2. Type the name of the NFA ID or traders to search https://www.nfa.futures.org/basicnet/;

3. You will obtain information about the trader on the NFA website. At this point you should click "Activity Status", Check the "Firm has commodity interest customers (this includes futures, options, forex, or swaps) (the company has commodity equity customers (including futures, complete, forex and swaps) "and" Firm is soliciting customer (the company is soliciting customers) "are marked" Yes ".

4. After completing the above steps, don't forget to check the most important information - check that the information on the NFA is consistent with the information of the dealer you are working with, especially pay attention to the website and email address.

If the information is inconsistent, stay away from the dealer, as it may be an unauthorized company that may lose your funds.

Matters needing attention

The classification of Forex brokers in the United States is very detailed, respectively accepting institutional business and retail business Forex brokers. The institutional business is called Forex Dealing Members (FDMs). These companies only accept institutional clients and cannot engage in retail business. Companies that are allowed to operate in the Retail forex sector are called RFEDs (Retail Foreign Exchange Dealers), which is the required qualification to accept retail forex customers, and retail Forex brokers must have this, otherwise they are fake brokers under the NFA name.