NFA Regulation

Regulation or How to choose a Forex Broker?

Reliability for many is the main criteria when choosing a broker.

Broker is an organization that you entrust your money to, therefore, safety of your money holds the top spot. But how to determine the reliability of a brokerage firm? There are at least two undeniable reliability checkpoints – the registered capital and the regulating body.

The registered capital of Forex Club LLC is $20,000,000. Forex Club is a registered merchant with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA). The company background information is open and can be easily viewed on the NFA website (NFA ID 0358265) and on the CFTC monthly reports for adjusted net capital (click here).

How does the government regulation help to protect the safety of your funds?

Being a regulated broker puts a lot of responsibilities on the brokerage firm targeted at ensuring its financial security. Let’s review some of the requirements for NFA regulated brokers like Forex Club:

• In order to offer retail forex trading services in the United States the company must hold a valid Futures Commission Merchant FCM license and a minimum net capital of $20,000,000.
• The clients’ funds must be kept on a separate account and can not be used for company’s needs.
• According to the NFA rules forex brokerage firm must adhere to the strict risk control policies when processing trades on behalf of clients. At all times Forex broker must secure all clients’ positions in the outside clearing house or by the company’s own capital.
• All NFA registered brokers are required to pass through a rigorous yearly audit.
• NFA practices stringent policies for forex brokers trading platforms. Therefore, Forex Club follows strict rules to ensure the stability and safety of our clients’ transactions through our trading terminals.

Besides the requirements imposed by governmental regulating bodies, we have a set of internal policies geared toward financial stability of the firm. Among such policies is the diversification of company’s funds across the major world banks. This measure helps insure the company stability should any bank crises take place. We hope you found this information useful and will help you make the right decisions when choosing a forex broker.