Commodity Futures Trading Commission (CFTC)
Tier 1The US federal regulator for derivatives and futures markets.
Is CFTC regulation safe? Quick verdict
Short answer: yes, CFTC is a full, top-tier regulator. Commodity Futures Trading Commission (United States) is widely regarded as one of the strictest authorities in the world, so a genuine CFTC-licensed broker is about as safe as retail trading gets. The catch is "genuine" — fraudsters routinely fake an CFTC licence, so the verdict only holds once you have verified the licence number yourself.
How to check a broker's CFTC licence
The single best defence against a fake CFTC broker is a 60-second register check. Do this before you deposit:
- 1Find the broker's licence/registration number — it is usually in the website footer or "Legal" / "About" page, alongside the legal entity name.
- 2Open the official CFTC register at https://www.nfa.futures.org/basicnet/ and search that number (or the company name) directly — never click a "regulated by CFTC" badge on the broker's own site.
- 3Confirm the name, website and status on the register match the broker you are about to fund. If the entity is flagged, expired, or the domain doesn't match, walk away.
4 protections an CFTC licence gives retail traders
Here is what CFTC regulation actually means for your money — the parts that matter when something goes wrong:
Segregated client funds
CFTC-licensed brokers must keep client money in segregated accounts at reputable banks, separate from the firm's own operating capital. If the broker fails, your funds are ring-fenced and should not be used to pay the company's creditors.
Investor compensation
There is no statutory investor-compensation scheme under CFTC. If the broker becomes insolvent and client money is missing, there is no government-backed fund to reimburse you — a major difference versus the FCA (£85,000) or CySEC (€20,000). This alone is a reason not to keep large balances here.
Negative balance protection
Retail clients are protected against owing more than they deposit: if a violent market move pushes an account negative, the broker absorbs the shortfall. You cannot be chased for a debt beyond your balance.
Leverage capped at 1:50
CFTC caps retail leverage at 1:50 on major currency pairs (and lower on volatile assets such as minor pairs, indices and crypto). This is a deliberate brake on risk. It is also a useful tell: any "CFTC-regulated" broker advertising 1:500 leverage to retail EU clients is lying about its licence.
CFTC-regulated brokers we track
Hover a broker to see the share of retail accounts that lose money. CFDs are high-risk.
Typical CFTC scams to watch for
An CFTC badge is exactly what fraudsters imitate. These are the patterns we see most often:
⚠The clone-broker trick
Fraudsters copy the real licence number and legal name of a clean CFTC broker, then build a near-identical website on a slightly different domain. The licence "checks out" — but it belongs to the legitimate firm, not the clone. Always confirm the exact website/domain on the CFTC register, not just the number.
⚠The bonus trap
Deposit and trading bonuses to retail clients are banned under ESMA/MiFID conduct rules. If a broker claims to be CFTC-regulated while advertising a "100% deposit bonus" or guaranteed returns, it is almost certainly not genuinely regulated by CFTC — or is steering you to an unregulated offshore entity.
⚠Registered address, but no real licence
Many offshore brokers use a mailbox address in United States to look locally regulated without holding a real CFTC licence — or they hold a licence for a different, unregulated activity. Being based in United States is not the same as being authorised by CFTC. Check that the specific entity and activity are licensed.
Verdict: should you trust an CFTC broker?
A genuine CFTC-licensed broker offers strong, top-tier protection. The single most important step is to verify the licence number yourself on the official register before you deposit a cent.
Below are the 3 CFTC-regulated brokers we currently track. If you are unsure whether your broker really plays by the rules, read our reviews or compare verified, safe alternatives.
Frequently asked questions
Is CFTC regulation safe?+
Yes — a CFTC licence is a top-tier sign of safety, provided you confirm the broker genuinely holds it. Client funds are segregated, though there is no statutory compensation scheme.
How do I check a broker's CFTC licence?+
Find the broker's licence number on its website, then search it on the official CFTC register (https://www.nfa.futures.org/basicnet/). Confirm the company name, website and "authorised" status all match. Never rely on a badge or a link supplied by the broker itself.
What happens if a CFTC broker goes bankrupt?+
Client money should be segregated and returned to you, but CFTC has no statutory compensation fund. If client money is missing, there is no government-backed scheme to reimburse you — one reason to keep balances modest under this regulator.
Why is leverage limited to 1:50?+
CFTC caps retail leverage at 1:50 on major pairs to stop small accounts being wiped out by normal market moves. It is a protection, not a restriction to work around — and any "CFTC" broker offering far higher leverage to retail clients is misrepresenting its licence.