{"id":232,"date":"2016-08-31T07:44:09","date_gmt":"2016-08-31T07:44:09","guid":{"rendered":"http:\/\/www.makemoneytradingreviews.com\/?page_id=232"},"modified":"2020-09-21T09:11:20","modified_gmt":"2020-09-21T09:11:20","slug":"nfa-registered","status":"publish","type":"page","link":"https:\/\/www.makemoneytradingreviews.com\/nfa-registered\/","title":{"rendered":"NFA Explained: The Forex Market, Broker Companies, and Regulatory Bodies"},"content":{"rendered":"
Forex is the largest market in the world where mind-blowing amounts of money are operated every day and where profits are enormous. And so are the losses as well.
\nIf you are looking for a broker to join the turbulent circus, you should find a broker company that takes its client seriously and offers them the best conditions in the vivid but hazy business.
\nWhen a broker fulfills all of the criteria you find convenient (like smooth trading platforms, optimal leverage and spreads, sufficient currency pairs, simple payout methods, etc.), there is one more thing you should take into consideration: the power behind the broker.
\nIf a broker company is really honest and does not look to scam you but to establish a business relationship with you, they certainly will let you know who regulates their business conduct.
\nAs an innocent trader, you did your homework regarding the research on broker companies, but another task lies ahead of you. You also have to check out the situation behind the curtains. As soon as you are interested in a broker, make inquiries on who runs the operations behind the scene.<\/p>\n
It means that every licensed broker has a strong business regulation policy and even hires companies or broker regulators to supervise their businesses. Some countries have governments or banks that regulate the Forex market, but the United States include privately run agencies and organizational bodies that will do the job, moreover – an excellent job.
\nThese companies set out rules and limits within the law to the broker companies and ensure prevention of fraud and illegal actions by imposing a transparent financial system.
\nThere are certain well-reputed agencies that earned their trust among U.S. citizens through their work and operation policy. One of these is the NFA.<\/p>\n
NFA stands for National Futures Associations<\/a> and is a self-regulatory independent body based in the USA. Their main goal is to develop regulatory programs for futures regulation, protection of traders, and assist the Forex brokers in meeting criteria that include all the above. They are responsible to the Commodity Futures Trading Commission in charge of the U.S. futures industry regulation.<\/p>\n The member companies of the NFA ensure a transparent environment of financial operations which is very important to establish trust between the broker company and its traders. The NFA impose very strict regulations and procedures for the broker companies with the goal to create safe conditions for traders\u2019 investments.NFA the Top Regulator of the Forex Empire<\/h3>\n
\nThe NFA makes sure that traders\u2019 funds are separated from the company\u2019s finances ensuring that operation activities are funded solely from the company\u2019s budget.
\nThe broker companies backed up by NFA are steady and liquid businesses and have sufficient assets to back up the clients\u2019 positions with their own financial means. Moreover, to register with the NFA, broker companies have to have a minimum net capital of $15,000,000 as proof of their capability to back up clients\u2019 positions.
\nThe companies are bound to issue weekly reports on their account balances to the NFA, and they are subdued to overall annual audits. The companies\u2019 staff and employees attend specific NFA training and get certified.
\nThe NFA, together with the CFTC<\/a>, warns about fraudulent firms and actions and issues detailed lists of their member broker companies that are reliable and safe for clients.<\/p>\nThe History of the Commodity Futures Trading Commission (CFTC)<\/h3>\n