The National Futures Association (NFA) is the industry-wide self-regulatory organisation for the U.S. derivatives markets, including retail off-exchange forex. Authorised by Congress and supervised by the CFTC, it writes and enforces the rules that forex and futures brokers must follow before they can deal with U.S. residents.
What NFA regulation means for traders
- Strict capital requirements: retail forex dealers must hold substantial net capital, lowering the chance of insolvency.
- FIFO and no-hedging rules: U.S. retail forex uses first-in-first-out order handling and prohibits holding opposing positions in the same pair.
- Leverage caps: retail leverage is limited to roughly 50:1 on major pairs and 20:1 on minors.
- Audits and disclosure: members file regular financial reports and are subject to NFA examinations.
How to verify an NFA broker
Every member has an NFA ID you can look up through BASIC (Background Affiliation Status Information Center) on the NFA website. It shows registration status, regulatory actions and disciplinary history. Only firms listed there may legally solicit U.S. retail forex clients.
In short
NFA oversight is among the most demanding in the world, which is why relatively few brokers accept U.S. retail forex clients. It provides strong conduct and capital protections, although the U.S. has no forex-specific compensation scheme like the UK’s FSCS. Compare regulated brokers in our broker reviews.