Forex trading market is concerned to be allowed and available for all the traders across the entire world. We all know that, but meanwhile, while we are reading different Forex brokers reviews or when we enter in such a broker, there`s a big chance to find a warning that usually goes like this “no allowed customers from USA”, “no limitations or restrictions – except for the USA-based clients” and etc. All of these lead to the conclusion that Americans aren’t very welcomed to all the Forex platforms. But if you think that this is a sign of discrimination, you are on the wrong way. As a matter of fact, such restrictions are integrated not to chase away the US-based traders, but to protect them. This protection is on most cases determined as exceeding, because it is integrated by the USA government. In order to protect its citizens, who are for some reason players on the Forex market, the government in USA has excluded the chance for them to trade in any of the available Forex brokers. Moreover, if back in the days, the regulation for Forex trading in USA was zero, today, it is not only established, but also very well improved and advanced. So, if you ever see some USA Forex brokers, become 100% sure that these platforms are indeed trustworthy and reliable.
Specifications about USA Brokers
There`s nothing so strange or weird about the USA brokers. On the contrary, they seem absolutely the same as the Australian, Cyprus-based or the most popular brokers in the web – the UK Forex platforms. Even though claimed to be too protected, we strongly recommend you to choose Forex brokers in USA than a platform, which seems to be a fraud or a scam. However, it could be interesting for you to know that most of the USA Forex brokers have little leverage – not more than 50:1 in most cases. On the other side, USA has its own law act according to which citizens from The States do not have the right to open an account in USA Forex brokers, which are not regulated by the two main regulator bodies in the countries. The only chance to skip this restriction is the trader to have net actives that are above 10 millions of USD. Another restriction at the USA Forex brokers is the fact that all of them have anti-hedging program of measures.
What is The Regulation in USA Forex Brokers?
Till the first years of the 21st century Forex trading and Forex brokers in USA were not regulated at all. Everything changed in 2008 year, when the 2008 Farm Bill was integrated as an official law act that puts important rules in this financial activity. Later, in 2010, the Dodd-Franc Wall street Reform Act of 2010 settled down the things even more specifically. Though, all the Forex brokers in USA, as well as the market here changed completely with the opening of the two official – up to now – regulation bodies. Since then, the two agencies take the control of the entire Forex trading activity in USA and for USA-based citizens.
- National Futures Association – Known by the abbreviation of NFA across the Forex audience, the National Futures Association was at first the only body that gives official permissions and licenses to the USA Forex brokers. Today, it has yet such powers, but it also applies the significant and obligatory standards for all the Forex brokers in USA. Safety for clients – connected with the financial transactions and the personal data – is also taken by the NFA, too, and such cases can be opened according to specific procedures, too. Compliances and electronic fillings are options, which are available on the official NFA website, as well.
- Commodity Futures Trading Commission – The Commodity Futures Trading Commission or the CFTC works to preserve the transparency, loyal competitiveness and financial stability to all the Forex brokers in USA. The procedures and measures this commission takes are all focused on the better trading processing, as well as on minimizing the systemic risk. The CFTC is also in charge to promote market integrity and to stop any act of violation or abuse. However, finding and charging frauds is the main mission that the Commodity Futures Trading Commission follows in its general work. Last, but not least, the CFTC is obliged to publically inform people about its actions – including about began investigation for a suspicious Forex brokers USA.
Even though bounded with several restrictions and limitations, the Forex brokers in USA are quite attractive and interesting to be known. You can quickly understand what all the financial trading acts by the Government allow and not allow. What is more important, though, is to be careful enough and not to make a registration or any trades in USA Forex brokers, which are not officially licensed and regulated either by CFTC, or by NFA.
Other forex brokers countries and topics:
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