US NFA Verification Guide: How to Identify "Non-Member" Scam Traps? (2026 Update)

World's Strictest Regulation! Why 99% of Traders Should NOT Open a US Account?

Preface: The "Supreme Hall" and "Narrowest Gate" of Forex Regulation

This article will tell you:

The Dual Defense of CFTC and NFA

Mr.Forex Viewpoint

• Registered with the CFTC.
• Is a full NFA Member.

3 Steps to Check NFA License (Using FOREX.com as an Example)

Step 1: Get the NFA ID

Step 2: Enter the NFA BASIC System

Official URL: [NFA BASIC Search]

• Select the "NFA ID" tab and enter in the search box: 0339826.
• Click "SEARCH".

Step 3: Verify "Member Status" and "Firm Name"

• Verify Status (Status):

  It must display "NFA Member Approved". This is the basic baseline for safety. Also, the detailed list below must include "Retail Foreign Exchange Dealer" or "Futures Commission Merchant".

Caption: Search result page. Status must show "NFA Member Approved". Note that large companies often register under their parent company name (e.g., GAIN Capital), so check against website terms.

• Verify Legal Name (Name):

  You will find the company name in the search result is "GAIN CAPITAL GROUP LLC", not "FOREX.com". Is this normal? Yes.
  
  Because "FOREX.com" is just a brand name, while "GAIN CAPITAL" is its registered legal entity (parent company). You must go back to the "Legal Terms" page of the broker's website to confirm if it states that it is operated by GAIN Capital.

Caption: Verification of the broker's website legal disclaimer. Be sure to check the bottom of the website to confirm the stated operating parent company matches the NFA search result (as marked "GAIN Capital Group LLC" in the image).

Teaching Point:

Why I Don't Recommend Opening a US Account?

• Extremely Low Leverage:
  Capped at 1:50 for major pairs and just 1:20 for minor pairs. This means you need to prepare more principal.


• No Hedging:
  You cannot hold both long and short positions simultaneously.


• FIFO Rule (First In, First Out):
  If you have multiple orders for the same instrument, you must close them in the "order they were placed", you cannot freely choose which one to close first. This is extremely inconvenient for short-term traders.


• Rejecting Foreigners:
  The vast majority of US compliant brokers (like FOREX.com US) only accept US residents. If you live in Asia or Europe, you generally cannot open a US account; they will redirect you to other jurisdictions (like UK FCA or Australian ASIC).

Conclusion: The True Use of an NFA License

• If you are a US resident:
  You have no choice but to use NFA / CFTC regulated brokers.


• If you are an international investor:
  Seeing a broker hold an NFA license is a huge trust bonus. Because companies that can pass the US government audit have world-class financial strength and compliance. You can safely use other regulatory accounts under the same group (such as UK FCA or Australian ASIC) to enjoy a more flexible trading environment while having the reputation guarantee of a large group.