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Rated: High73%-77% of retail investor accounts lose money when trading CFDs with this provider -
Rated: High70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. -
Rated: HighTrading in futures and options carries substantial risk of loss, clients may lose more than their original investments and is not suitable for every investor.
The best Forex brokers regulated by the United States authority Commodity Future Trading Commission (CFTC), according to our research, are:
- Forex.com
- IG Markets
- Plus500
- Nadex
- Oanda
- Interactive Brokers
- TD Ameritrade
To compile this ranking the following criteria were taken in consideration:
- If the broker was fully regulated in the USA
- The minimum deposit of the broker/provider for CFTC clients
- Deposits and withdrawals accepted for CFTC clients
- If USD currency was available for CFTC clients
- Spreads charged for CFTC clients by the broker
- Leverage available for CFTC clients
- If the Negative balance protection was in store for CFTC clients
- If a rebate program or bonus was available for CFTC clients
What are the best CFTC forex brokers?
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Below is our curated list and review of the best forex brokers regulated by the CFTC, with details and information about the regulation, the features, and the characteristics.
Forex.com
best CFTC broker overall
Forex.com registers with the CFTC. Forex.com is a member of NFA. Forex.com offers CFTC clients spreads from 0.2 pips. Forex.com does not provide negative balance protection to CFTC clients.
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About Forex.com
FOREX.com is a global forex and CFD broker founded in 2001, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. FOREX.com provides proprietary platforms alongside MetaTrader 4 and 5. FOREX.com is regulated by multiple top-tier authorities including FCA, ASIC, and CFTC. FOREX.com is known for competitive spreads, fast execution, and extensive educational resources. FOREX.com serves over 450,000 clients worldwide. The FOREX.com’s parent company “StoneX Group Inc.” CEO is Sean O’Connor.
Forex.com Features
The features of Forex.com are listed below.
- Forex.com is registered with the CFTC and a member of the National Futures Association (NFA # 0339826).
- A Forex.com minimum deposit/withdrawal of $100 and a maximum deposit/withdrawal of $25,000 is accepted for US clients, through bank transfer (ACH), debit card, and wire transfer.
- Multiple Forex.com base currencies are accepted including USD, EUR, CAD, JPY, CHF, AUD, and GBP.
- CFTC traders have access to Forex.com spreads from 0.2 pips on 80+ currency pairs, with a maximum leverage up to 50:1
- Forex.com offers a monthly cash-back rebates program up to $10 million with the Active Trader Program. This is designed for high-volume traders and it’s divided into tiers: level 1 goes from US$50M to US$100M with a 5% rebate per million, while the last level goes from US$1B+ with a 15% rebate per million.
- CFTC clients of Forex.com won’t benefit from negative balance protection.
Forex.com Pros and Cons
Advantages of Forex.com
The advantages of Forex.com are listed below.
- Regulatory Assurance
- Low Forex Fees
- Comprehensive Educational Resources
Disadvantages of Forex.com
The disadvantages of Forex.com are listed below.
- Limited Product Portfolio
- Higher Spreads on Standard Accounts
- No Guaranteed Stop-Loss Orders for U.S. Clients
IG Markets
best for trading platforms
IG Markets registers with the CFTC. IG Markets is a member of NFA. IG Markets charges CFTC clients spreads from 0.8 pips. IG Markets offers no negative balance protection to CFTC clients.
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About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- IG Markets is registered with the CFTC and a member of the NFA under number 0509630.
- IG Markets clients under CFTC are charged spreads from 0.8 pips on 80+ currency pairs.
- CFTC clients will have access to maximum leverage of up to 50:1 on major forex pairs.
- The IG minimum deposit is $250 for CFTC traders.
- No negative balance protection is provided for CFTC clients by IG Markets.
- CTFC IG clients can deposit by wire transfer, automated clearing house (ACH), or debit card. USD base currency is supported.
- High-volume CFTC regular traders could be eligible for automatic monthly rebates based on the IG trading activity. There are three tiers, the first one starting from $100M notional traded with a rebate of 5%.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
Plus500
Plus500 registers with the CFTC. Plus500 is a member of NFA. Plus500 offers a USD futures account. Plus500 provides no negative balance protection to CFTC clients. Plus500 gives a deposit bonus to CFTC clients.
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About Plus500
Plus500 is a global fintech company founded in 2008, offering online Futures trading services in different markets such as Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy and Equity Indices. Plus500 provides proprietary web and mobile trading platforms. Plus500 is regulated by multiple top-tier authorities including FCA, ASIC, and CySEC. Plus500 is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The Plus500 CEO is David Zruia since April 2020.
Plus500 Features
The features of Plus500 are listed below.
- Plus500 is registered with the CFTC and a member of NFA (ID n° 0001398).
- Plus500 requires a minimum deposit of $100 to open a live account.
- Deposits and withdrawals with Plus500 are available through wire transfers and debit cards.
- CFTC clients can open Plus500 Futures Account in USD.
- Plus500 charges low commissions on Future contracts on: Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy, Equity Indices.
- CFTC clients of Plus500 won’t benefit from Negative Balance Protection.
- Plus500 offers a deposit bonus up to $200 to CFTC clients.
Plus500 Pros and Cons
Advantages of Plus500
The advantages of Plus500 are listed below.
- Well-regulated Futures provider
- Wide range of Futures instruments
- Unlimited demo account offered
Disadvantages of Plus500
The disadvantages of Plus500 are listed below.
- Advanced technical analysis tools not available
- Doesn’t support automated trading options
- No Negative Balance Protection
Nadex
best for binary options
Nadex regulates under CFTC. Nadex operates in the U.S. Nadex offers a $100 bonus for a $1,000 initial deposit. Nadex provides no leverage or negative balance protection to CFTC clients.
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About Nadex
Nadex is a US-based derivatives exchange founded in 2009, offering options, call spreads, and knock-outs on forex, commodities, stock indices, and cryptocurrencies. Nadex is regulated by the CFTC and provides a proprietary trading platform. Nadex operates as an exchange, matching buyers and sellers without taking positions. Nadex offers educational resources and a demo account for traders. Nadex is part of the Crypto.com global brand. The Nadex CEO is Travis McGhee.
Nadex Features
The features of Nadex are listed below.
- Nadex is a derivative exchange well-regulated by the CFTC for US trading.
- CFTC Nadex traders can benefit from a $100 bonus with an initial deposit of $1,000.
- Nadex deposit methods available for CFTC traders include debit card, check, ACH bank transfer, and wire transfer. Withdrawal methods are the same, minus the check option.
- Both USD deposits and base currency are supported by Nadex.
- CFTC clients can trade 11 Nadex forex pairs as binary options, as well as commodities, events, and stock indices.
- Nadex charges a fixed fee of $1 per side, per binary option contract.
- CFTC Nadex does not offer leverage trading.
- No Nadex negative balance protection is offered to CFTC clients.
Nadex Pros and Cons
Advantages of Nadex
The advantages of Nadex are listed below.
- Regulated by CFTC
- User-Friendly Platform
- Educational Resources
Disadvantages of Nadex
The disadvantages of Nadex are listed below.
- Limited to U.S. Residents
- High Minimum Deposit
Oanda
best for deep liquidity
Oanda regulates under the CFTC. Oanda is a member of NFA. Oanda requires no minimum deposit for CFTC clients. Oanda offers no negative balance protection to U.S. clients.
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About Oanda
OANDA is a global multi-asset broker founded in 1996, offering trading on forex, CFDs, commodities, indices, and cryptocurrencies. OANDA provides proprietary platforms and API solutions. OANDA is regulated by multiple authorities including FCA, ASIC, and MAS. OANDA is known for competitive spreads, fast execution, and currency data services. OANDA serves both retail and institutional clients worldwide. The Oanda Chief Executive Officer is Gavin Bambury since August 2019.
Oanda Features
The features of Oanda are listed below.
- Oanda is regulated by the CFTC and NFA (n. 0325821).
- Oanda doesn’t have a minimum deposit requirement to open a standard account for CFTC clients.
- Oanda offers the USD base currency for CFTC clients.
- Oanda deposits available for CFTC clients are via debit card, bank wire, check, and electronic bank deposit (ACH), while withdrawals are available via debit card and bank wire.
- CFTC Oanda clients find spreads from 1 pip on 70+ forex pairs with leverage up to 50:1.
- Oanda offers their CFTC high-volume traders the Advanced Trader loyalty program, where they can benefit from several perks, including reduced spreads.
- US Oanda clients won’t find negative balance protection.
Oanda Pros and Cons
Advantages of Oanda
The advantages of Oanda are listed below.
- Comprehensive Platforms
- Robust Education
- Highly Regulatory Trust
Disadvantages of Oanda
The disadvantages of Oanda are listed below.
- Higher Spreads
- Proprietary Platform Limitations
- Inactivity Fees
Interactive Brokers
best for assets type
Interactive Brokers holds CFTC regulation. Interactive Brokers is a member of FINRA. Interactive Brokers requires no minimum deposit for CFTC clients. Interactive Brokers offers no negative balance protection to CFTC clients.
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About Interactive Brokers
Interactive Brokers is a global electronic broker founded in 1978, offering trading in stocks, options, futures, forex, bonds, ETFs, and cryptocurrencies across 150 markets in 33 countries. Interactive Brokers provides advanced trading platforms, low commissions, and access to a wide range of financial instruments. Interactive Brokers is known for its sophisticated technology and serves both retail and institutional clients. Interactive Brokers is regulated by multiple top-tier authorities worldwide. The CEO of the Interactive Brokers Group is Milan Galik.
Interactive Brokers Features
The features of Interactive Brokers are listed below.
- Interactive Brokers is a FINRA member and also well-regulated by the CFTC (n. 0392970).
- CFTC clients won’t be requested to make an IBKR minimum deposit.
- An IBKR account can be funded by US clients through wire transfer, bill payment, or credit card.
- IBKR supports both USD deposits and base currency for CFTC traders.
- IBKR spreads for US traders start from 0.1 pips on 100+ forex pairs.
- CFTC traders of IBKR find a minimum margin rate of 1.16%.
- Negative balance protection is not offered to CFTC clients by IBKR.
Interactive Brokers Pros and Cons
Advantages of Interactive Brokers
The advantages of Interactive Brokers are listed below.
- Low Trading Fees
- Advanced Trading Tools
- Wide Market Access
Disadvantages of Interactive Brokers
The disadvantages of Interactive Brokers are listed below.
- Not user-friendly
- No MetaTrader Support
- Additional Fees
TD Ameritrade
best for futures trading
TD Ameritrade regulates under the CFTC. TD Ameritrade is a member of FINRA. TD Ameritrade offers no minimum deposit for CFTC clients. TD Ameritrade provides no negative balance protection to CFTC clients.
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TD Ameritrade Features
The features of TD Ameritrade are listed below.
- TD Ameritrade is a CFTC-regulated FINRA member.
- TD Ameritrade under CFTC electronic supports several deposits and withdrawal methods such as Bank Deposit (ACH), wire transfer, and check.
- US clients don’t have a minimum deposit required to open an account. However, there is a minimum for electronic funding of $50 for a Standard account and goes up to $2,000 for a margin account.
- The TD AmeriTrade minimum margin rate available for US clients is 7.75%.
- CFTC clients find TD Ameritrade spreads from 0.1 pips on 70+ currency pairs.
- TD Ameritrade doesn’t provide negative balance protection for CFTC clients.
TD Ameritrade Pros and Cons
Advantages of TD Ameritrade
The advantages of TD Ameritrade are listed below.
Disadvantages of TD Ameritrade
The disadvantages of TD Ameritrade are listed below.
What is the CFTC?
The Commodity Future Trading Commission (CFTC) is an authority of the United States, established in 1974 and is one of the 4 independent US market regulators. The other three regulators in US trading are the NFA, FINRA, and SEC.
There is a limited number of brokers who have one of these regulators in place and so, finding the ideal broker for US traders can sometimes be difficult. Brokers that are regulated under CFTC (Commodity Future Trading Commission) regulations though can offer trading opportunities in a number of markets. These include commodities, futures, and other derivative products within the US market.
How does the CFTC work?
The role of the CFTC in regulation is to promote trading in commodities and derivatives markets within the United States to forex traders and others alike. They also perform the role of ensuring these offerings from brokers are not fraudulent. They have a collaborative relationship with US institutions, particularly in finance and the NFA, often working together in tandem.
The CFTC protects the market and traders within the market by looking out for any of the following:
- Fraudulent firms
- Scams
- Firms that manipulate the market
- Firms that offer illegal instruments such as CFDs
- CFTC rules violation
- Other violations such as inadequate oversight of traders
What are the characteristics and benefits of CFTC?
The CFTC provides forex traders with a maximum leverage of 50:1 on major forex pairs. This is more than allowed for forex trading in the EU under CySEC. Although the CFTC does not provide any negative balance protection or automatic refund in the case of fraud, they are known to be very helpful and active in the investigation of such cases.
For these reasons and the fact that they require brokers to hold funds in segregated accounts that protect the trader, the CFTC is considered to be one of the most stringent regulatory authorities in the world.
What are the prohibitions with CFTC?
Since the CFTC regulates forex, commodities, and futures markets, these and other derivatives are all considered legal to trade in the US. CFDs on the other hand are not legal for trading in the United States.
Differences between CFTC Regulated and CFTC Licensed Brokers
There is indeed a difference between a broker that is CFTC regulated, and one that is CFTC licensed. A regulated broker is one that holds a CFTC registration number that is required for it to operate within the United States.
A CFTC licensed broker is one that just requires written permission from the body to offer services in the US. This permission can be given in different situations, but generally, the reason is that CFTC has treaties with other regulators outside the US market. So, since they apply the same rules, the financial institution can offer its services within the US without an actual CFTC regulation and associated number.
How to check if a broker is CFTC regulated
Since they work hand in hand, all CFTC regulated brokers can be double-checked through the NFA website. All of this information can be taken as verified and official from a CFTC standpoint.
The NFA website allows you to search for the company. All you need to do is input the business name that you can often find at the bottom of your forex brokers homepage.
How does CFTC intervene in case of financial abuse?
The CFTC has wide-ranging powers to intervene if they feel that forex brokers have broken any of the regulations providing protection to you as a forex trader in the US. The case in point here may be FXCM who were banned from the US market in 2017 for claiming to offer negative balance protection.
They were banned from both CFTC and NFA regulation for this issue and fined $850,000. This ban still stands in US markets.
How CFTC can help you
If you have any regulatory questions, issues, or feel you may have been the victim of a forex scam broker, the best thing you can do is go to the CFTC official website and contact the CFTC Division of Enforcement.