National Futures Association
(NFA)Regulatory Snapshot
The National Futures Association is the industry-wide, self-regulatory organisation for the US derivatives industry. Working in partnership with the CFTC, the NFA develops rules, programmes, and services to safeguard market integrity, protect investors, and help its members fulfil their regulatory obligations. NFA membership is mandatory for all entities conducting futures and forex business in the United States.
About the NFA
The National Futures Association (NFA) is the self-regulatory organisation designated by the US Congress to oversee the American derivatives industry. Since its founding in 1982, the NFA has worked alongside the Commodity Futures Trading Commission (CFTC) to maintain the integrity of the derivatives markets and protect investors from fraudulent and abusive practices.
Regulatory Framework
All firms and individuals conducting futures and forex business in the United States must be registered with the CFTC and become NFA members. The NFA develops and enforces rules covering financial requirements, sales practices, record-keeping, and ethical standards. Its BASIC (Background Affiliation Status Information Center) system allows the public to verify the registration and disciplinary history of any NFA member.
Dispute Resolution
The NFA provides a formal arbitration and mediation programme for resolving disputes between customers and NFA member firms. This service offers an accessible and cost-effective alternative to litigation, with proceedings conducted by qualified arbitrators with expertise in the derivatives industry.
- BASIC system for background affiliation status checks on firms and individuals
- Member arbitration and mediation programme for dispute resolution
- Strict compliance requirements with ongoing monitoring
- Annual self-examination questionnaire for all members
| Instrument | Retail | Professional |
|---|---|---|
| Major Forex | 1:50 | 1:50 |
| Minor Forex | 1:20 | 1:20 |
| Gold | 1:20 | 1:20 |
| Indices | 1:20 | 1:20 |
Self-regulatory organization operating under CFTC oversight. All forex dealers must be NFA members.
Body: NFA Arbitration Program
Visit Dispute ResolutionRelated Regulators
CFTC
AAATier 1Commodity Futures Trading Commission
The Commodity Futures Trading Commission is an independent agency of the United States Government that regulates the US derivatives markets, including futures, swaps, and certain kinds of options. Established in 1975, the CFTC enforces one of the world's strictest regulatory frameworks for forex trading, with capital requirements that far exceed most international standards.
CIMA
ATier 2Cayman Islands Monetary Authority
The Cayman Islands Monetary Authority is the regulatory body responsible for the supervision of financial services businesses in the Cayman Islands. Established in 1997, CIMA regulates banks, insurance companies, mutual funds, money service businesses, and securities investment firms within one of the world's most prominent international financial centres.
BMA
ATier 2Bermuda Monetary Authority
The Bermuda Monetary Authority is the integrated regulatory authority for the financial services sector in Bermuda. Established in 1969, the BMA supervises, regulates, and inspects financial institutions operating in or from Bermuda, including banks, investment businesses, insurance companies, and trust companies.
FinCEN
BTier 3Financial Crimes Enforcement Network
The Financial Crimes Enforcement Network is a bureau of the US Department of the Treasury. FinCEN's mission is to safeguard the financial system from illicit use, combat money laundering, and promote national security. While FinCEN does not regulate forex dealers in terms of market conduct or consumer protection, forex dealers must register with FinCEN as Money Services Businesses.
BCB
ATier 3Central Bank of Brazil
The Central Bank of Brazil (Banco Central do Brasil) is Brazil's monetary authority, responsible for monetary policy, currency issuance, financial system supervision, and foreign exchange market regulation. Established in 1964, the BCB plays a central role in regulating one of Latin America's largest and most dynamic financial markets.
BVI FSC
COffshoreBritish Virgin Islands Financial Services Commission
The British Virgin Islands Financial Services Commission is the regulatory authority responsible for the regulation, supervision, and inspection of financial services in the British Virgin Islands. Established in 2001, the BVI FSC oversees banking, insurance, fiduciary services, and investment business within the territory.