Best US forex brokers – List of forex brokers regulated by CFTC/NFA

Broker Country Rating Min. Deposit Website
US5/5$50Click for a special offerWebsite
US, UK, CA, SG, AU, JP4/5$1Read the review
UK4/5n/aRead the review
USA4/5$250Read the review
USA1/5N/ARead the review
US1/5N/ARead the review

The US forex market is probably the most heavily regulated one. US Forex brokers must be regulated by the National Futures Association (NFA) or the Commodity Futures Trading Commission (CFTC), and must meet strict requirements designed to protect local investors. Needless to say, the CFTC and NFA are quite strict in enforcing their regulations and guidelines. If a regulated company fails co comply with any of the legal requirements, the fines are pretty heavy.

First of all, they are subject to one of the highest capital requirements for financial services providers worldwide. US brokerages must maintain a net capital of at least $20 million to make sure that they are well-capitalized to protect investors from unfavorable events. By comparison, the minimum net capital requirement for Australian brokers is AUD 1 00 000, and for those in UK and Cyprus – EUR 730 000. The US market, however, does not tolerate small players.

Second, forex brokers in the USA are allowed to provide leverage up to 1:50 for majors and up to 1:20 for minor currencies. A number of financial regulators have introduced similar leverage caps due to the high risk of significant loss when using high leverage ratios, including those in Japan, Turkey and, most recently, the European financial authority, ESMA. However, many traders are tempted by the opportunity of quick profit on a small deposit, which higher leverage offers, and search for brokers that provide leverage up to 1:100 or more. On the other hand, the leverage restriction also results in lower trading volumes, and, respectively, smaller profit for the brokerages.

Another restriction US brokers are subjected to is the so called FIFO (first in, first out) rule. Simply put, this rule prevents traders from going long and short on the same pair at the same time. Where there are several open trades on the same pair and of the same size, a trader is required to close the oldest trades first. This also means that hedging is not allowed.

Similarly to the situation in other jurisdictions, US brokers have to meet certain reporting requirements. In addition to CFTC’s recordkeeping and reporting guidelines, they are required to provide their customers with access to certain transaction execution data (under the NFA’s rules on disclosure of transaction data).

Actually, most of the above-mentioned restrictions for forex brokers in the US were introduced by the Dodd–Frank Act in 2010. What’s more, this law practically prohibited foreign forex brokers from accepting US clients. According to the Dodd–Frank, forex brokers that are allowed to deal with US forex traders must be registered with NFA (and regulated by CFTC). US regulators keep threatening any broker that accepts US clients without US regulation and have spread their tentacles inside many foreign governments through a series of Memoranda of Understanding agreements. Thus, NFA & CFTC have effectively extended US regulation to cover US residents in countries that are parties to these agreements.

Considering the heavily regulated environment in the US, no wonder there are only a few forex brokers left legally operating there. Above is a list of those brokerages.

 

US Forex news

Crypto exchanges face new regulatory requirements

Guidelines on how national regulators should oversee virtual assets will be published on June 21 by the Financial Action Task Force (FATF)

Posted in News, Regulation | Tagged , , | Leave a comment

Kraken raised nearly $7 mln in less than a day

Kraken, one of the biggest US crypto exchanges raised nearly 7 million USD in the first day of its fundraising campaign. The

Posted in Forex, News | Tagged , , , | Leave a comment

US Department of Justice charges “recovery agents” with investment fraud

Two Israelis formerly involved with the scam websites BinaryBook and BigOption have been charged by the United States Justice Department on online

Posted in Forex, News | Tagged , , , , , | 2 Comments

CFTC orders 1pool Ltd to pay $990000

The Commodity Futures Trading Commission (CFTC) in the US ordered 1pool Ltd and its founder and CEO Patrick Brunner to pay 990

Posted in Forex, News | Tagged , , | 1 Comment

US Pension Funds invest in crypto assets for the first time

Two pension funds in Virginia, US will take part in a new 40 million USD venture capital fund, focused on the crypt

Posted in Forex, News | Tagged , , , | Leave a comment

IG officially returns to the US market

IG Group officially introduced IG US – their new US subsidiary, after IG Markets left the US back in 2011, because of

Posted in Forex, News | Tagged , , , , | Leave a comment

Forex giant XM lies in wait for NFA membership

The US broker brand of the well-known forex brokerage XM hopes soon to count itself among the members of the National Futures

Posted in Forex, News | Tagged , , | Leave a comment

SEC: The lack of market surveillance is an obstacle to Bitcoin ETFs

The lack investor protection hinders the approval of Bitcoin exchange-traded funds (ETFs) said on Tuesday the Securities and Exchange Commission (SEC) chairman

Posted in News, Regulation | Tagged , , , , , | Leave a comment

Bitcoin scammer ordered to pay over 2,5 million USD

A US federal court ordered a New York company to pay $2.5 million in fines and restitution for running a Ponzi scheme

Posted in News, Regulation | Tagged , , , | Leave a comment

IG acquires a US forex license

IG, one of the biggest brokers in the forex industry has acquired a US regulatory approval – a step that will allow

Posted in Forex, News | Tagged , , , | Leave a comment

FBI, SEC and CFTC moved against 1Broker

US authorities, including FBI, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) moved against 1pool Ltd., owner

Posted in Forex, News, Regulation | Tagged , , , , , , | Leave a comment

US’s CFTC charges Wealth Generators LLC, LegionFX LLC and six other financial intermediaries

The US financial watchdog the Commodity Futures Trading Commission filed charges against eight forex and binary options brokers, that illegally targeted US

Posted in News, Scam Warnings | Tagged , , , , , , , , , , | Leave a comment

American citizens charged for a 1,4 mln. USD trading Ponzi scheme

The Securities and Exchange Commission (SEC) in the US has charged with fraud two men from the state of Michigan for running

Posted in Forex, News | Tagged , , | Leave a comment

US regulator has rejected 9 applications for bitcoin ETFs

The US Securities and Exchange Commission (SEC) has rejected nine applications to start the first-ever bitcoin-based exchange-traded funds or ETFs. The decision,

Posted in News, Regulation | Tagged , , , , , , | Leave a comment

CFTC goes after forex broker JAFX for accepting US clients

The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil action against forex broker JAFX, accusing it of soliciting and accepting US customers

Posted in Forex, News, Regulation | Tagged , , , , | Leave a comment

FXCM, Gain Capital’s June 2016 retail trading volumes dive y/y

The latest monthly metrics reports of US forex brokers Forex Capital Markets, or FXCM, and Gain Capital, the operator of Forex.com, indicated

Posted in Forex | Tagged , , , , , | Leave a comment