Before you send money to a firm that offers Forex, futures, or commodities to customers in the United States, it’s worth checking whether it’s registered. It’s free, it’s public, and it takes less time than a cup of coffee. This guide explains how to do it in NFA BASIC, the official database of the National Futures Association.
Short answer
Go to NFA BASIC, search for the firm by its legal name or its NFA ID, and check three things: that it has a current registration with the CFTC, that it’s an NFA member, and that it has no recent suspensions. If it doesn’t show up, or its contact details don’t match those of the broker who contacted you, don’t send money.
What NFA BASIC is
The National Futures Association (NFA) is the self-regulatory organization for the futures and Forex industry in the U.S. Its public database, BASIC, shows whether a firm or an individual is registered with the Commodity Futures Trading Commission (CFTC), whether it’s an NFA member, and whether it has any regulatory actions or arbitrations.
For other types of investments
If you’re being offered stocks or other securities, the equivalent tool is FINRA BrokerCheck. For investment advisers, the SEC offers Investment Adviser Public Disclosure. You’ll find all the links in Resources.
Step 1. Search for the firm by its legal name or NFA ID
Go to NFA BASIC and type the firm’s legal name, not the brand name of the app. If the broker’s website shows an NFA ID number, use it: it’s the most precise search. A legitimate firm usually displays that number in its website footer.
Step 2. Read the registration status
A firm that offers retail Forex to customers in the U.S. must be listed with a current CFTC registration and as an NFA member. Look at three things:
- The registration category. For example, Retail Foreign Exchange Dealer or Futures Commission Merchant.
- The status. An “approved” registration is different from a “withdrawn” or “expired” one, which does not authorize the firm to operate today.
- The dates. Check when the registration started and when it ended.
Step 3. Review regulatory actions
Open the regulatory actions and arbitrations section. An old fine doesn’t always disqualify a firm, but a recent suspension or a membership ban is a reason not to go ahead.
Watch out for clone firms
Some fraudulent sites copy the name or registration number of a real firm. Compare the website, phone number, and email listed in NFA BASIC with those of the broker who contacted you. If they don’t match, treat it as a red flag.
If the firm doesn’t show up
Don’t send any more money.
Save screenshots of the site, the chats, and your receipts. Check the CFTC’s RED list, which lists foreign entities operating without registration, and consider reporting to IC3 and the FTC. If someone offers to “recover” your money in exchange for an upfront payment, be wary.
Already sent money to a firm that isn’t registered? Request a free evaluation and we’ll tell you whether your case can be analyzed.
If your broker has already blocked a withdrawal, follow the guide Forex broker scams: what to do.
Does the broker operate from another country? See how to tell if a broker is regulated in the U.S., Mexico, Spain, and Colombia.
