Top 4 Best NFA forex brokers for 2021

logomark Filippo Ucchino calendar Last Updated: June 2021 timer 17 min read
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If you are a US-based trader, then this top 10 best NFA brokers list is for you.

Are you looking for the forex brokers with the best trading conditions, or just a safe, secure broker choice for you to trade with in the US?

No matter what you need, you can find it here in our listing of all the top trading brokers who are NFA regulated in the industry.

Table of contents

What is the NFA?

The NFA was started in 1982 and it is one of 4 US independent regulators. These four include the NFA, CFTC, SEC, and FINRA. Since 2010 brokers who wish to offer services in the US market must hold US regulation from one of these bodies. Of these, the NFA is the primary market regulator within the United States market. There is a lot of collaboration between the NFA and the CFTC in particular when it comes to the regulation of forex, commodities, futures, and other derivatives products within the US market.

If you are looking for a broker which is regulated in the US, then you may also want to look at CFTC regulated brokers for some excellent top broker choices.

Top 4 best NFA Regulated Forex Brokers

Here are the 4 best NFA regulated brokers which we have selected for you to choose from if you are looking for a US-regulated forex broker.

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77% of retail investor accounts lose money

1. Forex.com

Forex.com is the first to feature on our listing of the top NFA regulated forex brokers. They are regulated under number #0339826 and are a very experienced and acclaimed broker in the industry. Here you will find three account types to choose from. These are the standard, commission, and DMA account. The standard account is commission-free with spreads, while the commission account has lower spreads and a commission, and the DMA account features only commission.

To open your forex.com account you will need a $1,000 minimum deposit on a standard or commission account, and $25,000 for a DMA account. A demo account is also available for you to try out the broker risk-free first. You can deposit through credit cards, wire transfer, or eWallets and this is typically fee free with only USD deposits allowed. The only base currency supported is also the US Dollar. Here you can look forward to trading on both MT4 and the brokers own proprietary trading platforms with a low starting spread from 0.2 pips.

81
Rated: Excellent
Security 95
Cost 69
Trading 75
Education 82

Platforms: MT4 Dekstop, MT4 Web, Proprietary Desktop Platform, Proprietary Web Platform regulations: FSA, FCA, CFTC, MIFID-ESMA, IIROC, SFC Minimum Deposit: 100
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76% of retail CFD accounts lose money

2. IG Markets

Next on our list of top NFA regulated brokers is IG Markets. They are regulated under NFA #0509630. Again they are a top forex broker with a worldwide reputation for excellence. At IG Markets you will find one account type on offer. This account requires a minimum deposit of $250, though a demo account is available to try out first. .

Once you have opened your account, you can make a deposit through wire transfer, credit card, or eWallet, and most of the deposits and withdrawals are fee free with both USD deposits and base currency well-supported. When it comes to trading at IG Markets, you will have your choice of the well known MT4 trading platform, or the IG Markets proprietary trading platform with more than 80 forex pairs available to trade among other markets, and a great low spread starting from 0.8 pips.

90
Rated: Excellent
Security 98
Cost 62
Trading 100
Education 84

Platforms: Proprietary Web Platform, MAC Platforms regulations: FSA, MAS, FINMA, FCA, CFTC, MIFID-ESMA, ASIC, FMA, FSCA, DFSA Minimum Deposit: 300
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73.50% of retail investor accounts lose money

3. Oanda

Oanda is the next broker on our list of top NFA regulated brokers. They are a large presence in the US and around the world and are well-regulated by the NFA under #0325821. When you are here you will find that the broker offers two account types to choose from. These are the standard, and premium accounts. While there is no minimum deposit on the standard account, there is a $20,000 minimum deposit on the premium account, though you will have access to a host of benefits including reduced spreads, commissions, and more. A demo account is also available to try.

Once you are set up, you can make a deposit to your account through a wire transfer, credit card, or eWallet, with the majority being fee-free, and both a US Dollar base currency and deposit method accepted. When it comes to trading, this can be done through the MT4 trading platforms, and spreads can start from rock bottom at 0 pips depending on your account type and the asset you are trading.

79
Rated: Excellent
Security 94
Cost 70
Trading 68
Education 79

Platforms: Proprietary Desktop Platform, Proprietary Web Platform regulations: FSA, MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC Minimum Deposit: 0
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74-89% of retail CFD accounts lose money

4. Interactive Brokers

Last but not least on our listing of top NFA regulated brokers is Interactive Brokers. They are both NFA regulated under number 0392970, and a FINRA member. With IB you will have the choice of two different account types. These are IBKR Lite which has no minimum deposit, or maintenance fee, and IBKR pro, again with no deposit minimum, but a maintenance fee of up to $10.

When it comes time to make your deposit here, you can do so through wire transfer, credit cards, and bill payment. These are fee-free methods in most cases with both US Dollar deposits and base currency supported. The next step with the broker will be trading. Here you will have use of either MT4 or the Interactive Brokers proprietary trading platform. In all, a huge range of 105 forex pairs are available and with a great starting spread from 0.1 pips.

73
Rated: Excellent
Security 92
Cost 65
Trading 64
Education 57

Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms regulations: MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC, SEC, CYSEC, Offshore Minimum Deposit: 0

How the NFA works

The role of the NFA takes many forms in the US. On one end, their role is to promote forex, commodities, and derivative products in the US market, while also making sure that the brokers or other financial institutions offering these products are operating completely above board. They collaborate very closely with banks, brokers, and other institutions in the US, particularly the CFTC to both ensure compliance and follow up on their mission to promote trading.

As one of the chief market regulators, the NFA also plays a huge role in protecting you as a trader in the United States. They do this by always being on the lookout for fraudulent firms and brokers, any market manipulation, offering of illegal instruments such as CFDs in the US, or other NFA/CFTC rules violations which brokers must adhere to.

In order to become NFA regulated, the broker or firm faces a long and expensive mission. This is why you may not see too many NFA regulated brokers around, but it is also a factor in making it one of the most trusted in the world due to the fact that only brokers with the very best of intentions would commit to jumping through such regulatory hoops. Some of the requirements in order to become NFA regulated are as follows:

  • Brokers have to hold at least $20.000.000 in order to avoid any insolvency cases (caused by market volatility, for example) towards its customers
  • Client funds must be held in segregated accounts. This is in order to protect customers money from any case of bankruptcy or fraud

Characteristics and benefits of NFA

If you are under NFA regulation then you can look forward to a maximum available leverage of 50:1 being available on major forex pairs. This is more than you can achieve with some other regulators such as CySEC. With NFA regulation, segregated bank accounts must also be used by brokers, though negative balance protection is not mandatory.

In general, the regulations set out by the NFA are very strict. This is great in terms of making sure you have a very safe trading environment, but not great in that the expenses of passing through the regulatory process reduces the number of brokers that are available to the US market.

Prohibitions with NFA

Under NFA regulations, trading in forex, commodities, and the futures market is permitted. Every derivative product including future, options, bonds, and more, is legal within the US. The only trading which is illegal and strictly prohibited by the NFA is CFDs trading. No NFA regulated broker, nor any broker trading within the US is allowed to offer CFDs trading.

Differences between NFA Regulated and NFA Licensed Brokers

The difference between a regulated broker and a licensed broker in any country is that in order to be regulated, the broker must pass through the complete regulation process. This can often be long and expensive. If the broker is simply licensed, then they are allowed to offer services in a country without being fully regulated by that particular place. This can occur with some other regulators around the world, but is not allowed by the NFA.

In order to offer services in the US, a broker must be fully NFA regulated.

How to check if a broker is NFA regulated

It always makes sense to double check the regulatory status of your broker before you begin trading. To do this for your NFA regulated broker, simply head to the NFA official website and look for the firm register which you can check. You can also follow this firm register link and search for the firm name. This may be different to the broker name though it can often be found at the bottom of your brokers homepage.

How NFA intervene in case of financial abuse?

The NFA has widespread power to intervene and protect you as a trader if any financial abuse is suspected. This intervention could mean a temporary or permanent ban for the firm in question from operating in the area, or a fine and other sanctions that can be imposed at the discretion of the regulator. The most recent case of this with a major forex broker was in 2017 with FXCM when they were claiming negative balance protection in the US, when it was actually not available to US traders. They were both banned, and remain banned, and also had to pay a hefty $650,000 fine.

How NFA can help you

With that in mind, and the widespread powers that the regulator has demonstrated, there are many ways in which they could help you. These include if you have any disputes with a broker about any of the assets on offer, though you should remember that these disputes must involve NFA members, NFA employees, or NFA associates.

If this is the case, then you can go to the NFA official website and choose the “file a customer claim” option on the Customer Arbitration section to begin the process of filing your complaint for them to follow up on.


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