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The National Futures Association (NFA) is located at http://www.nfa.futures.org/index.asp. NFA is an independent provider of regulatory programs that safeguard the integrity of the derivatives markets.You want to make sure that the Forex broker or firm you are working with is registered with a regulatory body. This prevents fraud and minimizes risks with your investments. For example, FX Club at http://fxclub.com is a NFA member. This means that as a client, you can expect ethical and regulated services. NFA also offers arbitration and mediation programs to help investors and NFA Members resolve futures-related disputes. This is as vital to the foreign currency exchange market in the same manner the Sarbanes-Oxley Act is vital to the stock exchange. The NFA also helps investors conduct a background check on the firms and individuals offering global forex trading. NFA's Background Affiliation Status Information Center (BASIC), investors can quickly and easily check the registration status and disciplinary history of every firm and individual conducting global foreign currency trade. The Commodity Futures Trading Commission (CFTC) is a United States government regulatory board. The CFTC website is located at http://www.cftc.gov/. In the same manner that background checks with NFA can help protect your individual investments from fraud, the CFTC offers multiple regulatory procedures and legal and ethical behavior guidelines for firms, banks, and brokers operating in the globally currency exchange market. The CFTC's website offers a comprehensive list of signs of fraud and delinquent investors, brokers, and firms. This way, you can do your research with a firm before you commit to global foreign currency trade with that institution.
|Jennifer Mathes, Ph.D.|