List of Brokers with CFTC Regulation

Due to CFTC's strict rules, trading in a CFTC-regulated broker would mean limited leverage (50:1 for major currency pairs and 20:1 for non-major currency pairs), no hedging from the same currency pair since the US regulator imposes the FIFO rule, and no bonus programs are allowed to be provided.

The reason for such prohibition is that CFTC considers leverage, hedging, and bonus programs as highly risky. Based on their previous cases, those three have the most potential in misleading new clients who don't know better.

The upside of trading with such strict regulation is that clients could expect the highest level of assurance in data security and funds safety. In case of suspicious broker acts, clients could always report to CFTC and be followed up with a settlement.

Since CFTC designates NFA to oversee forex brokerages, they have been directing clients to the NFA Basic Database to check their official members. Here's the simple guide:

1. Go to the NFA Basic Database.
2. Type the brokerage name in the available column, then click Search.
   
   
   
   
3. If your broker has been registered, there should be the "NFA Member Approved" statement in the Membership Status column. You could click on the broker's name to check further information about the broker.
   
   
   
   
4. On the broker's registration page, you could track the data, regulatory actions, decisions, as well as reparation cases (if there are any) that fell upon the broker.
   
   
   

Interestingly, CFTC also provides the RED List which consists of illegal brokers soliciting and/or accepting funds from US customers and offering a product within their jurisdiction. You can check them on this page and see more details on each entity.

The form of punishments imposed on violators of the CFTC regulations is divided into several levels, ranging from fines, freezing of activities, to permanent termination. Over the years, CFTC has frozen numerous fraud companies and expelled problematic brokers. Some of the cases that happened in recent years were:

• Sues on Binance for deliberate violations of their trading and derivatives regulations. The case has been brought to the US court and has yet to be settled as of August 2023.
• $45 million penalty on HSBC for manipulative and deceptive trading. The most highlighted of this violation is the use of WhatsApp Messenger for discussing deals
• $300,000 fine on GAIN Capital for ambiguous trades presented by Foremost, the brokerage's independent introducing broker.
• Civil Lawsuit against FXCM in consequence of the broker's under-capitalized state and failure to report their capital shortfall in a timely manner. This eventually led to FXCM's exit from the US market.

Comparing the Commodity Futures Trading Commission (CFTC) with other forex regulatory bodies involves considering factors such as the regulatory approach, investor protection measures, and the overall regulatory environment. Here's a comparison of the CFTC with a few other well-known forex regulatory bodies:

• OANDA
• IG
• FOREX.com
• Interactive Brokers

⌛ Established	1996
💲 Min Deposit	$0
⚖ Max Leverage	1:20
⭐ Rating

OANDA provides traders with exceptional trading platforms that are both high-quality and user-friendly. The broker offers powerful research tools, including various technical indicators and an impressive API offering. Opening an account with OANDA is a seamless and efficient process, ensuring a user-friendly experience.

However, it is essential to note that the company has a limited product portfolio, focusing primarily on forex and CFD trading. Additionally, as OANDA is not listed on a stock exchange and lacks a banking background, some may consider this a potential drawback regarding safety qualifications. Furthermore, customer support is available 24/5, which means it is not accessible around the clock.

This is how the broker performs on 7 important aspects in trading:

 

 

✔️ Pros

• More than 70 currency pairs
• Available worldwide
• No commission per lot
• Great learning content
• No minimum deposit

❌ Cons

• Limited customer support hours
• Lack of direct social copy trading features
• Only USD as the base currency

⌛ Established	2010
💲 Min Deposit	$200
⚖ Max Leverage	1:500
⭐ Rating

IG provides a well-designed and user-friendly web trading platform that offers customization options. The website offers a range of educational tools to support traders. Funding and withdrawals are convenient, with multiple options available.

However, it's worth noting that IG's trading fees for stock CFDs are relatively high. The product portfolio is also limited in some countries, primarily offering CFD and options trading. Customer support could be improved to meet customer expectations.

This is how the broker performs on 7 important aspects in trading:

 

⌛ Established	1999
💲 Min Deposit	$250
⚖ Max Leverage	1:200
⭐ Rating

FOREX.com, a subsidiary of GAIN Capital Holdings, has been a prominent global online broker since its establishment in 2001. It caters to retail traders interested in FX and CFD markets. FOREX.com provides a wide range of trading options globally. Alongside forex trading, which is its namesake, it offers CFDs, spread betting, futures, and more across multiple asset classes.

However, the availability of these instruments may vary depending on the region. In addition to forex, traders can access commodities, indices, individual stocks, bonds, ETFs, gold and silver, cryptocurrencies, and futures, catering to diverse trading preferences.

This is how the broker performs on 7 important aspects in trading:

 

⌛ Established	1977
💲 Min Deposit	$10000
⚖ Max Leverage	1:100
⭐Rating

Interactive Brokers (IBKR) is a top choice for active traders, offering low per-share pricing, advanced trading tools, and a wide range of tradable securities, including foreign stocks. With its new IBKR Lite option, clients can enjoy commission-free trades of stocks and ETFs.

IBKR leads the market with its comprehensive investment platform, allowing trading in stocks, options, futures, forex, cryptocurrencies, bonds, and funds across 150 markets from a single account. It's favored by professionals for its institutional-grade desktop trading platform and competitive trade executions, while everyday investors benefit from user-friendly mobile apps.

This is how the broker performs on 7 important aspects in trading: