🏦 Brokers·beginner

NFA (National Futures Association)

Also called: national futures association

The self-regulatory body for US futures and forex brokers — works alongside the CFTC to oversee the industry.

The National Futures Association is a self-regulatory organization that oversees futures, options, and forex brokers operating in the US. It works alongside the CFTC (the federal regulator) to handle day-to-day rule enforcement, dispute resolution, and member oversight. To legally offer forex to US retail clients, a broker must be an NFA member in addition to being CFTC-registered. The NFA maintains BASIC (Background Affiliation Status Information Center), a free public database where anyone can look up a broker's registration, disciplinary history, and financial information. It's a powerful due-diligence tool for US retail traders. NFA membership requires brokers to meet capital standards, submit to regular audits, participate in dispute arbitration, and follow strict marketing rules. Violations can result in fines, suspensions, or outright bans from the US market.

Real trade example

FXCM was fined $7 million by the NFA and CFTC in 2017 for defrauding clients by routing orders to a market maker that the firm had an undisclosed interest in. FXCM was subsequently banned from operating in the US — the NFA enforcement was swift and severe.

Related terms

CFTC (Commodity Futures Trading Commission)

beginner

The US government regulator for futures, options, and forex — enforces strict rules on retail forex brokers operating in the US.

Broker Regulation

beginner

The government or industry body that oversees a broker and enforces rules on capital requirements, disclosures, and client protection.

Broker

beginner

The company that gives you access to the forex market — the middleman between you and the currency you want to trade.

FCA (Financial Conduct Authority)

beginner

The UK's top-tier financial regulator — one of the strictest and most respected in the world for forex and CFD brokers.

ASIC (Australian Securities & Investments Commission)

beginner

Australia's top-tier financial regulator — oversees forex and CFD brokers with strict rules on leverage, disclosures, and client protection.

CySEC (Cyprus Securities and Exchange Commission)

intermediate

Cyprus's financial regulator — a common EU regulator for forex brokers that offers MiFID II passporting across Europe.

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