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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.
A NFA forex broker refers to a forex (Foreign Exchange) brokerage firm which is regulated and authorized by the United States authority called National Futures Associations (NFA).
The NFA was started in 1982 and it is one of the four 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.
In order to rank the best NFA brokers we have taken into consideration a number of factors including the following:
- An active NFA license;
- The commissions charged on forex;
- The general quality of the broker;
- Specific brokers’ features.
What are the best NFA forex brokers?
Below is our curated list of the best forex brokers regulated by the NFA, with details and information about the regulation, the features, and the characteristics.
Forex.com
deep liquidity provided
Forex.com is regulated by the NFA as GAIN Capital Group LLC, providing access to over 80 currency pairs and metals. Forex.com sets a minimum deposit of $100 with leverage capped at 1:50. The office is in New Jersey.
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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.
- Winner of the InvestinGoal Best Broker Awards 2021 for North America.
- Forex.com is regulated by NFA as GAIN Capital Group LLC with license n° 0339826.
- Forex.com provides access to retail forex with more than 80 currency pairs; gold and silver; futures and futures options.
- Spread on forex depends on the account types chosen but starts from 0.2 pips + $5 commission on EUR/USD while leverage is limited up to 1:50 under NFA regulation.
- High-volume traders can access the STP Pro account for lower spreads and a cash rebates program.
- The minimum deposit needed to open an account is $100 though the broker recommends $2,500 for greater flexibility.
- The local office can be found at Bedminster, in New Jersey.
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
overall trading experience
IG Markets operates under the NFA as IG US LLC, offering over 80 currency pairs with competitive spreads. IG Markets holds an office in Chicago and provides a rebate program for high-volume traders.
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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 regulated in the US as IG US LLC by the NFA with license n° 0509630.
- IG Markets act as a retail forex market dealer in the US providing access to more than 80 currency pairs with spreads starting from just 0.8 pips on EUR/USD.
- High-volume traders with at least one hundred million USD traded per month automatically qualify for volume-based rebates up to 15% of the spread.
- Winner of FX Weeks e-FX 2019 Award for Best Retail FX Platform of the Year.
- The local NFA office is registered in Chicago.
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 obtains NFA regulation as Cunningham Commodities LLC, offering futures on 13 Forex pairs and other markets. Plus500 sets a $100 minimum deposit with fixed commissions on various contract types.
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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 regulated by the NFA as Cunningham Commodities LLC with license n° 0001398.
- Plus500 provides Future contracts on: Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy, Equity Indices.
- Plus500 commissions start from $0.49 on micro contracts and from $0.89 on standard and E-mini contracts.
- Plus500 requires a minimum deposit of $100 to open a live Futures account with a deposit bonus up to $200.
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
Oanda
best for beginner traders
Oanda holds NFA regulation as OANDA CORPORATION, offering 70 currency pairs with tight spreads. Oanda qualifies traders for a loyalty program with sufficient deposits. Oanda maintains offices in Toronto and New York.
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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 NFA as OANDA CORPORATION with license n° 0325821.
- Oanda is an authorized retail forex dealer with 70 currency pairs charging spreads from 0.0 pip on EUR/USD with the core pricing plus commission plan.
- If you deposit a minimum of $10,000 and have a monthly trading volume of at least $10 million you can qualify for the Advanced Trader Loyalty program earning up to $1.50 per lot traded.
- Winner of the Best FX Data Provider, North America at Global Brand Awards 2020.
- The registered business address for NFA is in Toronto, but Oanda has local office in the US as well in Times Square, New York.
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
wide range of available markets
Interactive Brokers, regulated by the NFA, provides over 100 currency pairs with global market access. Interactive Brokers offers low spreads and maintains an office in Greenwich, Connecticut.
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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 subject to NFA’s regulatory oversight as Interactive Brokers LLC with license n° 0258600.
- Interactive Brokers is an authorized forex dealer member, and under NFA they offer more than 100 currency pairs along with global access to stocks, options, futures, bonds, and funds.
- Interactive Brokers deliver deep liquidity and real-time quotes from 17 of the world’s largest FX dealers with tight spreads on forex from 0.1 pip on EUR/USD.
- Rated as the Best Online Broker four years in a row by Barron’s 2021.
- The NFA local office is located in Greenwich, Connecticut.
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
How does the NFA work?
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
What are the 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.
What are the 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 does 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.