The United States of America takes the regulation of financial markets very seriously and has developed and implemented quite a few regulatory authorities over the years. However, there are a select few that stand above the rest in terms of credibility and importance. The Commodities & Futures Trading Commission (CFTC) is one of these authorities with such highly respected regulatory framework. The CFTC works as an independent regulatory agency tasked with the supervision and regulation of American companies dealing in the futures, SWAP’s, commodities, and Forex trading. By overseeing these markets, the CFTC hopes to create fair and transparent markets for traders as well as maintaining the integrity of brokerages in the markets.
|3||OANDA||2001||CFTC, DFSA, FSA, IIROC, MAS, NFA|
|4||eToro||2007||NFA, CySEC, ASIC, CFTC, MiFID, FCA|
|5||TradeStation||1982||CFTC, FCA, NFA, SEC|
|6||IG Markets||1974||FCA, ASIC, FSCA, CFTC, NFA|
USA as a world known and important country in the worldwide economy and financial systems hold a strong position in the Forex industry as well, yet applied some of the strictest demands to their operations. Due to USA regulations and laws, there are many implemented rules which seem to be complicated and limiting trading possibilities. However, there are numerous USA Forex Brokers that in fact bringing a reliable and very competitive trading environment.
As for the regulation itself, the trading and Forex industry is overseen by the two main authorities while all US Brokers must be registered with the NFA (National Futures Association) or CFTC (Commodity Futures Trading Commission). Those supervising authorities regulate financial service providers or trading Brokers which ensures market integrity, with responsibilities to provide transparency and the highest level of client’s protection. In fact, the CFTC is among the most progressive authorities in terms of publicly that informs the citizens about taken actions and market researches, while the main mission of the organization – to find fraud companies.
To identify if a forex broker is regulated by CFTC, the first step is to identify the name of the entity from the disclosure text on the broker's homepage. For example, here's the key disclosure text from FOREXcom's website.
FOREXcom holds a banking license issued by its supervisory authority the CFTC.Next, look up the firm on the list of supervised institutions listed on CFTC's website to validate the firm's current regulatory status. Here is the official CFTC page.
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