Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Top CFTC Regulated Forex Brokers

The Commodity Futures Trading Commission (CFTC) regulates all Forex brokers which are legally allowed to market their services in the U.S., along with the National Futures Association (NFA). Most Forex traders in the U.S. choose to open their accounts with CFTC-regulated Forex brokers. I have created a shortlist for you of the best CFTC-regulated Forex brokers. Read on to view my shortlist and to learn how the CFTC can protect you plus the pros and cons of opening an account with a CFTC-regulated broker compared to an offshore broker.

80% of retail CFD accounts lose money
1
5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
A publicly listed broker in the UK & FTSE 250 constituent.
20+ years of experience in US futures trading & a $100 minimum deposit.
2
4.6/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
NFA regulated broker
In-house research and excellent educational center
3
4.5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid services + excellent currency converter
4
4.1/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Top US Forex broker
Over 17,000 tradeable assets
5
3.5/5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
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Best CFTC Brokers Comparison

Regulators
ASIC, CySEC, FCA, FMA, FSCA, MASASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFAASIC, BVIFSC, CFTC, FCA, FSA, IIROC, MAS, MFSAFCAN/A
Year Established
20082001199619741978
Execution Type(s)
Market MakerMarket MakerECN/STP, Market Maker, Matched Principal BrokerMarket MakerECN/STP, No Dealing Desk
Minimum Deposit
$100
$100
$0
$250
$0
Average Trading Cost EUR/USD
1.3 pips1.1 pips0.9 pips0.9 pips0.2 pips ($2.00)
Average Trading Cost GBP/USD
1.7 pips1.3 pips1.3 pips1.4 pip0.4 pips ($4.00)
Average Trading Cost Gold
$0.34 $0.63 $0.30 $0.30 $0.17
Trading Platform(s)
Proprietary platform, Web-basedMetaTrader 4, MetaTrader 5, Proprietary platform, Trading ViewMetaTrader 4, Proprietary platformMetaTrader 4, Proprietary platformProprietary platform
Islamic Account
Negative Balance Protection

Plus500

In Summary multi-asset and CFD broker

Plus500 offers US futures trading in cryptocurrencies, agriculture, metals, Forex, interest rates, energy, and equity indices from its user-friendly, web-based trading platform and mobile app. It includes a sentiment-based indicator and advanced analytical tools. Traders get 24/7 customer support, while the finance department ensures fast and secure withdrawals via bank wires, credit/debit cards, and PayPal.

I rank Plus500 among the best-priced CFTC brokers, with contract fees of $0.89 per standard and e-mini futures contract and $0.49 for micro contracts. A $10.00 liquidation fee per contract also exists. Plus500 has an excellent educational platform for beginner traders, including video lessons.

Read more on Plus500 »
5.0/5 in this category
Get Started
80% of retail CFD accounts lose money

Pros & Cons

  • Broad asset selection in equities and options
  • Free and unlimited demo account
  • Advanced free-of-charge analytical trading tools
  • Global and regulated fintech platform
  • Sub-standard trading platform without support for automated or social trading

Forex.com

In Summary Excellent trading conditions + NFA regulation

Founded in 2001, Forex.com is a global name owned by StoneX Group, a publicly traded company on the NASDAQ. It is a CFTC Forex broker and is owned by a company facing strong regulatory requirements due to its public listing.

Forex.com executes over 99% of customer trades in less than 1 second, and their average execution speed is 0.05 seconds. They successfully fill 99.99% of client orders.Forex.com provides regular analysis with trade ideas and webinars on key events such as non-farm payroll.

Direct Market Access is available at Forex.com. This can be a great option if you want to access raw spreads from their liquidity providers and do not want a dealing-desk or market maker type of account.

Read more on Forex.com »
4.6/5 in this category

Pros & Cons

  • Lower minimum deposit
  • Islamic account available
  • Good reputation
  • Choice of account types
  • Withdrawal fee

OANDA

In Summary Solid services + excellent currency converter
Read more on OANDA »
4.5/5 in this category

Pros & Cons

  • Excellent 28-tool MT4 upgrade package and outstanding trading tools
  • Trustworthy broker with more than 25 years of experience
  • Competitive pricing environment
  • Quality market commentary on the OANDA blog MarketPulse
  • Asset selection does not include equities

IG Markets

In Summary No withdrawal fee

IG is a global giant amongst retail CFTC Forex brokers and currently services over 300,000 clients. IG’s large size and status as one of the major global Forex brokerages has given it the revenue to spend on trading platforms. It offers the industry standard MT4, ProRealTime, and a “Core platform” developed in-house with advanced features. IG provides live support 24 hours a day, 6 days a week.

In the US, IG only offers Forex. However, it does offer a wide selection of over 80 Forex currency pairs, giving a lot of choice and ability to diversify within the asset class to dedicated Forex traders.

Read more on IG Markets »
4.1/5 in this category

Pros & Cons

  • Broad asset selection for Forex traders
  • Quality choice of trading platforms, including MT4
  • Autochartist signals integrated with the proprietary web-based platform
  • Limited deposit and withdrawal methods
  • Higher minimum deposit requirement, but within a reasonable demand

Interactive Brokers

In Summary suits demanding traders and algorithmic strategies
Read more on Interactive Brokers »
3.5/5 in this category

Pros & Cons

  • Many Different Features
  • Many Educational Services
  • Overwhelming Amount of Information
  • No Mention of Bonuses or Promotions

What is the CFTC?

The Commodity Futures Trading Commission (CFTC), a US government agency created in 1974, regulates the US derivatives markets. Since the CFTC’s founding, the US government has expanded its mandate to keep up with developments such as the popularity of retail Forex trading and cryptocurrency assets.

The CFTC’s mission is to foster open, competitive, and financially sound markets and protect market users and the public from fraud, manipulation, abusive practices, and systemic risk related to derivatives subject to the Commodity Exchange Act (CEA).

Key takeaways:

  • The CFTC is a US government regulatory agency.
  • All Forex & derivatives brokers actively offering services to US-resident traders must be registered with the CFTC.
  • The CFTC delegates much of its oversight operations to the NFA.

Advantages/Benefits of the CFTC

CFTC and NFA regulations and guidelines set minimum standards for U.S.-active Forex brokers to help minimize the risk of fraud and give traders a transparent and fair marketplace. Some of the key measures and mandates they use to achieve this are:

Segregated accounts. Separating client funds is possibly the most crucial requirement for the safety of client funds by CFTC Forex brokers. The CFTC requires that brokers keep customer funds in accounts separate from the firm’s money. Whether or not you choose a CFTC Forex broker, I highly recommend always using a broker that segregates your deposits from its operations.

Trade integrity. Brokers must have procedures designed to ensure the integrity of trades placed on their trading platforms. In particular:

  • Pricing. Trading platforms must be designed to provide pricing that is reasonably related to current market prices and conditions. Customer market or limit orders must be executed at or near the price at which other customers’ orders during the same time have been executed.
  • Slippage. Trading platforms should be designed to ensure that any slippage is based on real market conditions.
  • Rollovers. Trading platforms should be designed to ensure that automatic rollovers comply with the terms disclosed in the customer agreement.

Market risk disclaimer. All brokers registered with the CFTC must display a disclaimer about trading risks, particularly stating that performance is not guaranteed.

Enforcement. Regulations without enforcement mean very little. The CFTC has dedicated enforcement staff as part of their Division of Enforcement (DOE). Taking 2020 as an example, the DOE filed 113 enforcement actions, the highest number in the CFTC’s history. That same year, the CFTC ordered over $1.3bn in monetary relief.

Whistleblower program. The CFTC is one of the few financial regulators that directly accepts complaints about suspicious activity from the public. The Division of Enforcement houses the CFTC’s whistleblower program, which provides monetary incentives, confidentiality and retaliation protections to individuals who come forward to report possible misconduct. The CFTC even pays a percentage of money sanctioned to whistleblowers whose information leads to successful enforcement. On one occasion in 2021, the CFTC paid a whistleblower almost $200 million.

Key takeaways:

  • The CFTC requires brokers to segregate customer accounts from their operations, a critical foundation for the safety of funds.
  • The CFTC requires that brokers provide their clients with trade integrity with fair pricing, slippage, and rollovers.
  • The CFTC enforcement program leads to successful prosecutions and recovery of assets every year.

Disadvantages/ Prohibitions of the CFTC

U.S. persons using CFTC-regulated Forex brokers have several significant restrictions to consider that they would not face at non-CFTC regulated brokers based outside the U.S. The most important restrictions are:

Leverage. This restriction is probably the most significant for U.S.-based traders. Since 2010, the CFTC has set the maximum leverage for retail Forex traders at 50:1 for major Forex pairs (EURUSD, GBPUSD, USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD, USDSEK, USDNOK, and USDDKK), and 20:1 for minor Forex pairs.

No Hedging. The CFTC does not permit hedging on Forex accounts, i.e., holding two opposing positions in the same currency pair.

First in First Out (FIFO). This rule requires that traders liquidate their positions in the order in which they were opened in a currency pair. For example, if you opened two positions in EUR/USD, you must close the first one before closing the second one.

Key takeaways:

  • Using a CFTC broker means maximum leverage of 50:1 on major Forex pairs and 20:1 on minor Forex pairs. You can’t hedge trades, and FIFO rules apply.

How Does the CFTC Intervene in Cases of Financial Abuse?

The CFTC monitors US futures and options markets via its CFTC Market Surveillance Program in partnership with exchanges. Should the CFTC or an exchange detect suspicious activity, the first step is verbal contact seeking to clarify the situation. Although the CFTC grants an exchange the right to resolve the issue without CFTC intervention, the CFTC has emergency powers to force action but has only ever used this power against an exchange four times. These powers have been used to impose new or reducing existing position limits, position liquidations, delivery period extensions, or market closures.

The CFTC may also impose fines on market participants, impose lawsuits, or revoke licenses, forcing cessation of operation. The most prominent institutional examples include PFG Best and MF Global. A detailed list of all such historic actions is available on the CFTC website under the Enforcement Actions section.

The Bottom Line

  • CFTC oversight of brokers. Any Forex or Futures broker offering services to U.S.-based traders must be registered with the CFTC and regulated under its standards.
  • US-based traders. CFTC regulations are not designed to regulate traders, meaning if you correctly report offshore accounts to the IRS, you can use offshore brokers which are not regulated by the CFTC. If you are a US-based Forex or Futures trader, you should consider using a CFTC regulated broker as it offers major protections.
  • The CFTC’s role. The CFTC and NFA are active in setting industry standards and preventing fraud. CFTC regulated brokers are well-capitalized, have strong safeguards to protect your deposits, and provide a fair environment for trading.
  • Restrictions. U.S.-based traders face leverage restrictions, no hedging and FIFO rules.
  • Checking regulatory status. It’s easy to check the regulatory status of a broker that claims to be regulated in the US through the NFA’s “BASIC” portal. While registration and a clean disciplinary record won’t protect you from fraud, most scams involve unregistered entities.

You might also be interested in reviewing the below top brokers:

FAQs

What is the CFTC in Forex?

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The CFTC is a US regulatory agency that regulates Forex brokers.

Who is registered with the CFTC?

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Derivatives and Forex brokers must register with the CFTC. The CFTC has delegated registration responsibility to the National Futures Association (NFA).

Who is regulated by the CFTC?

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The CFTC regulates the US derivatives markets and Forex. The CFTC regulates any broker offering those services to U.S.-based traders.

Is the CFTC legit?

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The US Congress created the CFTC in 1974. The CFTC is considered one of the most respected financial regulators globally.

Does the CFTC regulate broker-dealers?

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All broker-dealers must register with the SEC and join a self-regulatory organization (SRO) like the NFA. Therefore, CFTC regulation is possible, especially if the broker-dealer falls under the category of floor broker, account executive or associated person, and futures commission merchant, but not necessarily guaranteed.

Is Forex regulated by CFTC?

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After amending the Commodity Exchange Act (the Act), Congress clarified that the CFTC has jurisdiction over Forex futures and options trading involving retail traders unless the counterparty falls within one of the enumerated categories.

Does the CFTC regulate broker-dealers?

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The CFTC does not regulate broker-dealers, which falls under the jurisdiction of FINRA, a private corporation that acts as a self-regulatory organization (SRO). FINRA operates under the oversight of the SEC, making it the ultimate regulator.

Which organizations regulate the Forex market in the USA?

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The NFA regulates Forex brokers in the USA. The CFTC created the NFA in 1982.

Is Forex regulated by the CFTC?

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The CFTC created the NFA, which regulates Forex trading in the US.

Huzefa Hamid
About Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.