Trading forex (currencies) in the United States (US) is popular among fx traders. Before any fx broker can accept US forex traders as clients, they must become registered as Retail Foreign Exchange Dealer (RFED) by the financial regulatory body, the Commodity Futures Trading Commission (CFTC) and also regulated by the National Futures Association (NFA) as a Futures Commission Merchant (FCM). The NFA website is nfa.futures.org. We recommend US residents also follow the CFTC on Twitter, @CFTC.
The CFTC is a federal regulatory agency that was established by Congress in 1974 with jurisdiction over the commodity futures (derivatives) markets. The same legislation authorized the creation of the registered futures associations, and in 1982 the NFA started as a self-regulatory organization for the US derivatives industry. For a historical breakdown here is a link to the NFA's webpage on Wikipedia.
Best US Forex Brokers List
To find the best forex broker in the US, we created a list of all CFTC-registered brokers, then ranked brokers by both trustworthiness, as well as their Overall ranking from the ForexBrokers.com 2018 Review. The result is our top forex brokers list for the US.
|CFTC Registered (USA)||Average Spread EUR/USD - Standard||Minimum Initial Deposit||Trust Score||Overall|
How to Verify CFTC Registration
To identify if a forex broker is CFTC-registered and regulated by the NFA, the first step is to identify the NFA ID number from the disclosure text at the bottom of the broker's US homepage. For example, here's the key disclosure text from FOREX.com's website.
FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826).
Next, look up the firm on the NFA website to validate the current status of the id number. Here is the official NFA page for FOREX.com.
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