U.S. Forex Brokers
Overseas Forex Brokers and Accounts of U.S. Citizens
U.S. Regulations need a Forex broker to be registered with Commodity Futures Trading Commission as well as to be a member of National Futures Association or NFA. This stands good for the following entities also:
Futures commission merchants (FCMs)
Introducing brokers (IBs)
Commodity pool operators (CPOs)
Commodity trading advisors (CTAs)
Floor brokers (FBs) and agricultural trade option merchants (ATOMs) are also intermediaries.
National Futures Association (NFA) is also authorized by CFTC to process registration on behalf of CFTC.
There are some exceptions of the above and those are as follows:
A firm handling transactions only for proprietary entities or persons (e.g. the firm itself, it’s affiliates and/or top executives or directors) need not register as an FCM.
An overseas or Non-U.S. firm which deals with only Non-U.S. clients and not U.S. Citizens does not have to register if it submits all trades for clearing to an FCM.
Can Overseas Forex Brokers Accept U.S. Clients?
The above mentioned rules came in force with Dodd-Frank Act and hence any overseas broker who does not meet these criteria of CFTC registration and NFA membership is not supposed to take U.S. Citizens as client.