Is NFA membership Mandatory?

Broker Discussion Forex Brokers
1

Somewhere on the NFA website, they say that any firm acting like an FCM is required to be registered as such (i’ll find the link). Which imples that NFA membership is mandatory for doing futures/forex with US retail cutomers.

I know FXDD (for example) had just recently submitted their NFA membership application. However they had existed long before they filed their app and claimed to be “self-regulated.”

They question is: are all US fx firms dealing with US customers required to be registered with CFTC and NFA member?

2

Yes, NFA Membership is required.

3

Then what explains FXDD being unregulated (up until submitting their application few months ago) ??

They are based in NYC

4

NFA registration is not mandatory. If the company only does spot transaction the dont need to be regulated/registered.