Are you new to all of this and you testing out a demo (for atleast 2months), and contemplating opening that real account ?
You should check that the firm you intend to use is registered with the: National Futures Association (�NFA�) is a membership organization comprised of individuals and entities in the business of placing futures and commodity options trades at contract markets on behalf of customers. NFA�s activities are overseen by the Commodity Futures Trading Commission (�CFTC�), the government agency responsible for regulating all aspects of the U.S. commodity futures industry. The CFTC has delegated to NFA the responsibility for processing applications for CFTC registration and granting CFTC registration when appropriate.
A CFTC advisory on foreign currency trading is available on the CFTC�s web site at CFTC Advisory on Foreign Currency. A consumer advisory regarding foreign currency trading fraud is also available on the CFTC�s web site at FOREX Advisory.
The Commodity Exchange Act, as amended in December 2000, makes it clear that the CFTC now has jurisdiction over off-exchange trading of foreign currency futures or options on behalf of retail U.S. customers. Off-exchange trading of foreign currency futures and options contracts on behalf of retail customers is legal only if conducted through CFTC-registered Futures Commission Merchants, financial institutions, broker dealers, insurance companies and their affiliates, financial holding companies or investment bank hold companies. Off-exchange trading of foreign currency futures and options with retail customers by organizations other than the above is a violation of the CEA.
You can obtain information about any firm or individual, from NFA�s Background, Affiliation, Status, Information Center (�BASIC�) system at www.nfa.futures.org/basicnet/ . BASIC is a user-friendly system that allows customers and member firms to quickly research individuals and firms who are CFTC registrants and NFA members. In BASIC you will find current and historical CFTC registration and NFA membership information and disciplinary actions taken by NFA, the CFTC and U.S. futures exchanges. In addition, you can find CFTC reparations and NFA arbitration cases; which are attempts by customers to resolve futures related disputes.
I use one of the sponsors here and they are NFA registered. They gave and continue to give me awesome service and advice (they also refered me to babypips.com). When i demo’d I used 3 firms from this site(b4 being refered to babypips.com) all offering great service (and they were NFA registered).
