CFTC / NFA · United States
Commodity Futures Trading Commission / National Futures Association
Arguably the strictest retail FX regime anywhere. Capital requirements are so high that only a handful of firms serve US retail forex clients. FIFO and no-hedging rules, plus thin competition that can mean less competitive pricing, make it a tough market for US traders.
- Retail leverage
- Retail FX capped at 50:1 on major pairs and 20:1 on others. CFDs are not available to US retail clients.
- Compensation
- No investor compensation scheme covers retail forex accounts.
- Capital
- US$20 million minimum net capital for retail forex dealers.
- Supervision & substance
- Registration with the CFTC and NFA membership, extensive reporting, and NFA rules that require first-in, first-out (FIFO) closing and prohibit hedging the same pair.
- Stocks, futures & crypto
- Futures sit with the CFTC through futures commission merchants. Stocks are a separate world: the SEC and FINRA, with SIPC cover of up to US$500,000 for securities accounts. The CFTC treats bitcoin and ether as commodities and oversees regulated crypto futures; rules for spot crypto are still being built out.
- Trade-off
- Very limited broker choice, FIFO, and no hedging. Non-US brokers can only accept US residents who qualify as Eligible Contract Participants.
What it means for you: If you are a US resident, this is your regime. An offshore broker happily onboarding US retail clients is a red flag.
Common questions about CFTC / NFA
Is CFTC / NFA a good regulator for forex brokers?
In our view, CFTC / NFA is a top-tier regulator (Tier 1 · Top-tier onshore). Arguably the strictest retail FX regime anywhere. Capital requirements are so high that only a handful of firms serve US retail forex clients. FIFO and no-hedging rules, plus thin competition that can mean less competitive pricing, make it a tough market for US traders. If you are a US resident, this is your regime. An offshore broker happily onboarding US retail clients is a red flag.
What leverage can brokers regulated by CFTC / NFA offer retail clients?
Retail FX capped at 50:1 on major pairs and 20:1 on others. CFDs are not available to US retail clients.
Is there a compensation scheme if a broker regulated by CFTC / NFA fails?
No investor compensation scheme covers retail forex accounts.
Does CFTC / NFA regulate stocks, futures, or crypto?
Futures sit with the CFTC through futures commission merchants. Stocks are a separate world: the SEC and FINRA, with SIPC cover of up to US$500,000 for securities accounts. The CFTC treats bitcoin and ether as commodities and oversees regulated crypto futures; rules for spot crypto are still being built out.
A licence only protects you if your account is with the entity that holds it. Many broker groups hold several licences and onboard clients through an offshore entity. Check your client agreement, and verify the licence on the regulator's own register.
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Tiers and ratings are M1 Strategic's own assessment, based on public sources listed in our regulator guide. Rules change: always verify with the regulator directly. Not financial advice.