Best NFA Regulated Forex Brokers – Trade from the US

For many people, the Forex industry is one of the most confusing in the world. While it can be lucrative and exciting, the sheer number of different forex brokers can make getting started tough. Whether you are new to Forex or you know exactly the broker you want to work with, you should make sure they are regulated.

Regulation is the single most important part of any kind of financial service. You have to know that the service is ethical, is trusted on a state level, and comes with a promise that any irregular conduct on the part of the company will not impact you in a negative way. For many people who want to get into the market, then, you might want to look into the various giants of the regulation industry. For a Forex trading platform to be operated, it must retain a license from a trustworthy source. And it just so happens that the National Futures Association (NFA) is one of the most powerful regulatory bodies around.

They are an independent authority that answers to itself. By overseeing regulation and supervision of any Forex trading that is taking place in the United States of America, they are one of the most important regulators in the world. They are the single most important authority for the derivatives market. Without them, it would be a much harder place to make a success through; it’s thanks to the NFA that trading via Forex can be such a safe experience.

Following the financial crisis of 2007-2008, the US took a much closer look at their current policy when it come to regulation in the Forex trading industry. They began to notice major drawbacks to the system that was in place, and thus chose to do something about it.

This led to the NFA becoming the premium name within the industry when it comes to regulation. They played a major role in modernising and revamping the industry itself, ensuring that there was someone to ensure the brokers that were allowed to trade were doing so in a way that is genuine and ethical.

What is the NFA?

The NFA is the regulatory body for all of the United States. Only brokers who have been agreed and licensed by the NFA will have the right to trade within the United States. That is why any non-regulated company who you wish to look for will not carry NFA status. In the USA, no matter who else they are with, if there is no NFA then there is no point continuing using that site.

Without their regulation, you are simply taking risks. They provide you with the certainty and the comfort that you need to understand that you are not going to lose money should the Forex broker you use go down. So long as they are actually managed by the NFA and have been given permission to operate, then you will have nothing to fear about using their particular service later on down the line.

That’s very important to note, as many people make the mistake of using a US-based firm without NFA regulation. Without regulation, you have little to no protection from anything including bankruptcy of the broker to money laundering schemes being discovered. The NFA also expects that anyone who is part of their regulation will also have member of the CFTC. Without that, there is a massive risk to your ability to get the safety and the certainty that you need.

Forex is risky enough as it is; using a trusted, verifiable broker is absolutely the right thing to do.

What Do They Provide?

For one, it provides you with total peace of mind that your chosen Forex platform is safe and capable of being used to your advantage. However, while it does look to give some traders a hard time due to the importance of strict regulation, in works for the most part to the benefit of everyone. That is a major reason why there is such an importance attached to this particular group.

Without their expert eye and their strict, high standards, the US Forex scene could still be full of needless risks and pitfalls. Instead, they have modernised the approach and the results are clear to see. It’s going to be much easier for you to work through a broker that is NFA licensed.

This comes down to the fact that there is a drastic reduction in the amount of opportunities for companies to pull tricks or commit financial malpractice. With such a high bar set by the NFA, it’s vital that companies play by their rules. If they don’t, then they can expect their entire opportunity to trade and operate as part of the US Forex market to be taken away from them.

Where is the Regulator Located?

Based in Chicago, the company works directly through the fees that its members pay. Like most nations, this is an autonomous NFP organisation that exists and regulates through the membership scheme. It does not use any kind of taxpayer funding, too, and there it has no reason to be doubted in terms of its legitimacy. In terms of authority and trustworthiness, it would be hard to say that the NFA has a superior in North American Forex trading.

It’s one of the most powerful regulators around because they take their role extremely seriously. They have a serious number of rules that must be followed, and you will be expected to follow these rules or risk losing your ability to work within the Forex scene in the USA.

It’s expected that any broker that is allowed to operate under NFA regulation has at least $20m in operating capital. That’s much higher than the average that you can find across Europe and elsewhere. It also demands that weekly financial statements are provide so that they can look for any irregularities that might have cropped up along the way.

For that reason, the NFA is among the most strict, specific, and powerful platforms in Forex trading today. If you want to know why the US market has become one of the most regulated in the world, it’s down to the good work and the consistent commitment of the NFA.

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