15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the NFA approval, including banking and payment rails.
Forex license in the USA: CFTC registration as a retail forex dealer.
A forex license in the USA is registration with the Commodity Futures Trading Commission (CFTC) as a retail foreign exchange dealer (RFED), with approval by the National Futures Association (NFA) as a Forex Dealer Member. It covers FX only: retail CFDs on indices, shares, commodities or crypto cannot be offered. Adjusted net capital starts at USD 20 million and NFA dues at USD 125,000 a year. We file from Miami.
Updated · Reviewed by the Prifinance team
Forex license in the USA: FX only, and USD 20 million before the first trade.
US law treats retail forex as a counterparty business. Under § 2(c)(2)(B) and (C) of the Commodity Exchange Act (CEA), off-exchange FX futures, options and leveraged spot contracts with customers who are not eligible contract participants (ECPs) fall under the Act unless the counterparty is one of the firms it lists: among them US financial institutions, broker-dealers, futures commission merchants (FCMs) primarily engaged in futures, and RFEDs that hold the required capital, are registered with the CFTC and belong to NFA. NFA counts individuals with assets under $10 million and most small businesses as such customers. The CFTC's rules sit in 17 CFR Part 5, published on 10 September 2010 (75 FR 55432) and last amended on 4 September 2024. An STP model changes nothing. FX is where the product range stops: other OTC contracts with non-ECPs are swaps, unlawful off a designated contract market (CEA § 2(e)), or leveraged retail commodity transactions treated as futures (§ 2(c)(2)(D)).
The money comes first. Adjusted net capital must be at least USD 20 million, or USD 20 million plus 5% of retail forex obligations above USD 10 million where that is more (17 CFR 5.7), and NFA expects an applicant to sit above the USD 22 million early-warning level of 5.6(b). A Forex Dealer Member (FDM) then pays NFA dues of USD 125,000 to USD 1,000,000 a year by revenue, plus FORTRESS order fees. Product terms are fixed by rule. Security deposits of at least 2% on ten major currencies and 5% on the rest (NFA Financial Requirements Section 12, amended 18 March 2026) work out at 50:1 and 20:1; positions in one account offset first in, first out, credit cards cannot fund accounts, and no dealer may promise to limit a customer's loss (5.16). Nor is there a compensation scheme. The prescribed risk disclosure says so in capitals: "YOUR DEPOSITS WITH THE DEALER HAVE NO REGULATORY PROTECTIONS".
A forex dealer for US retail clients registers with the CFTC as an RFED and joins NFA as a Forex Dealer Member. STP changes nothing, and retail CFDs are not available.
Adjusted net capital starts at USD 20 million, dues at USD 125,000 a year. Deposits of 2% and 5% mean 50:1 and 20:1, with no promise to limit losses.
The dealer that takes the other side, or the broker that introduces to it.
US rules sort retail forex firms by what they do. A firm that is, or offers to be, the counterparty registers as an RFED unless it is one of the excluded firms, such as a bank or a futures-focused FCM, and NFA treats a Forex Dealer Member that uses straight-through processing as the counterparty all the same. A firm that only solicits or accepts orders registers as an introducing broker (IB).
Counterparty as an RFED, or introducing broker to one.
The RFED as Forex Dealer Member
An RFED is the counterparty to its customers' retail forex trades and must be an NFA Forex Dealer Member. It holds adjusted net capital of at least USD 20 million plus 5% of retail forex obligations above USD 10 million, keeps customer assets at qualifying institutions (17 CFR 5.8) and runs a US office for its financial records.
An RFED is the counterparty to its customers' retail forex trades and must be an NFA Forex Dealer Member. It holds adjusted net capital of at least USD 20 million plus 5% of retail forex obligations above USD 10 million, keeps customer assets at qualifying institutions (17 CFR 5.8) and runs a US office for its financial records.
- ✓Counterparty to every customer trade
- ✓USD 20M + 5% of obligations above USD 10M
- ✓Early warning at USD 22M - 5.6(b)
- ✓Dues USD 125,000-1,000,000 a year
- ✓Deposits 2% on majors, 5% on others
- ✓US office with a resident principal and AP
The introducing broker, and the CFD line that stays closed
An introducing broker solicits or accepts retail forex orders from customers who are not ECPs, registers as an IB and joins NFA (17 CFR 5.3(a)(5)); by the CEA's definition (§ 1a(31)) an IB accepts no customer money to margin or secure trades, so the funds sit with the RFED or FCM that is the counterparty. Its own financial requirement is confirmed with NFA. Neither role opens retail CFDs on indices, commodities, shares or crypto.
Solicits orders and holds no customer funds; IB registration and NFA membership. No retail CFDs either way.
- ✓Solicits or accepts orders - 5.1(f)
- ✓Customer funds held by the RFED or FCM
- ✓IB registration and NFA membership
- ✓Financial requirement confirmed with NFA
- ✓No loss-limit promises - 5.16
- ✓No retail CFDs in either role
Costs and timelines are confirmed for your case before any work begins. NFA charges USD 500 for the Form 7-R RFED filing and USD 85 per principal or associated person (AP), waived for those already registered with the CFTC, and FORTRESS assesses USD 0.001 per order segment under Bylaw 1301(e)(ii).
Deposit floors set by rule, public capital figures and no offshore way in.
Of the forex licences we build, the US registration asks the most capital and keeps the retail shelf to FX; in return it writes the rules down and closes the market to dealers who skip it.
The CFTC states that a foreign entity registered with it is subject to the same regulations and oversight as US registrants, so a foreign group can apply. A registered foreign firm still keeps an office in the United States for its financial records, supervised by a principal and an AP who reside there.Registered foreign firms face the same rules.
NFA sets security deposits of at least 2% on the British pound, Swiss franc, Canadian dollar, Japanese yen, euro, Australian and New Zealand dollars, Swedish krona, Norwegian krone and Danish krone, and 5% on all other currencies; its Executive Committee may raise them temporarily. NFA reviews the major-currency list at least once a year (17 CFR 5.9(e)).At least 2% on majors, 5% on others.
Monthly figures for an RFED's adjusted net capital, its minimum requirement, the excess and its retail forex obligation are public, and so is its certified annual statement of financial condition (17 CFR 5.12(h)(2)). Banks and counterparties can read the numbers for themselves.Capital figures public every month.
NFA leaves little to platform design. Positions offset first in, first out; slippage and requotes must work the same way in both directions; and an executed order is re-priced only to settle a complaint in the customer's favour or, under exclusive STP, when the liquidity provider adjusts.FIFO and symmetric slippage, written into rules.
Corporations pay federal income tax at 21% of taxable income under IRC § 11(b), for taxable years beginning after 31 December 2017. State taxes come on top, and they depend on the state of incorporation.State taxes on top, by state.
A foreign broker that offers to be the counterparty to US retail customers, or solicits them, needs the same CFTC registration and NFA membership. The CFTC puts foreign firms that appear to act without it on its RED List, which flags forex among the activities it watches.Unregistered foreign dealers named on the RED List.
How the USA differs from other routes.
A UK dealer on own account holds £750,000 of own funds, an Australian CFD issuer keeps net tangible assets of at least A$1 million, and Japan registers an FX operator at ¥50 million with a capital adequacy ratio of 120% or more. The USA asks USD 20 million of adjusted net capital. It allows 50:1 on major pairs, against 30:1 at most in the UK and Australia and 25:1 in Japan, and keeps the retail shelf to FX.
| Feature | USA | Other jurisdictions |
|---|---|---|
| Dealer's capital | USD 20M adjusted net capital · + 5% above USD 10M | £750,000 UK · NTA A$1M Australia · ¥50M Japan |
| Retail leverage | 50:1 majors · 20:1 others | Up to 30:1 UK, Australia · 25:1 Japan |
| Retail CFDs | Not available · FX only | UK under PS19/18 · Australia under the CFD order |
| Timeline | Per case, after NFA's review | 9-15 months UK, Australia · 6-12 Japan, realistic |
| Country | License type | Taxation | Requirements |
|---|---|---|---|
USA | CFTC RFED · NFA Forex Dealer Member | 21% federal + state | USD 20M capital, FX only, 50:1 / 20:1 |
United Kingdom | FCA investment firm | 25% CIT · 19% small | MIFIDPRU tiers, CASS, PS19/18 |
Australia | ASIC AFSL | 30% · 25% base | NTA A$1M, CFD order |
Japan | FSA Type I FIBO | ~30% effective | ¥50M · CAR 120% · 25:1 |
USA
United Kingdom
Australia
JapanForex licences in neighbouring jurisdictions
All 79 forex licence jurisdictions →
How to start a forex brokerage: license, capital and steps →
Forex license requirements in the USA: what NFA checks.USA forex license requirements.
NFA processes the registration for the CFTC and will not approve an RFED until it has reviewed and approved everything it requests. These ten points carry most of the file.
Reflects the Commodity Exchange Act (United States Code, 2024 edition), 17 CFR Part 5 as last amended on 4 September 2024, and NFA's RFED registration requirements and forex regulatory guide, as of October 2026.CEA, 17 CFR Part 5 and NFA rules, as of October 2026.
Official sources
Regulator pages, legal texts and public registers the figures on this page are based on.
- LawCommodity Exchange Act, 7 U.S.C. 2 - govinfo (United States Code, 2024 edition)govinfo.gov
- Law17 CFR Part 5, Off-Exchange Foreign Currency Transactions - eCFRecfr.gov
- RegulatorNFA - Retail Foreign Exchange Dealer (RFED) Registrationnfa.futures.org
- GuidanceNFA - Forex Transactions: Regulatory Guidenfa.futures.org
- FeesNFA - Bylaw 1301, Schedule of Dues and Assessmentsnfa.futures.org
From the role question to NFA approval and the first reports.
The business is mapped against 17 CFR 5.1 and 5.3: counterparty as an RFED or FCM, or introducing broker. CFD lines on indices, commodities, shares and crypto come out of any US offer.RFED, FCM or IB; FX only.
Capital is contributed for the purpose of operating the business and shown on a Form 1-FR-FCM, certified as of a date within 45 days before filing, or uncertified and no more than 17 business days old with a certified one under a year old.Contributed and certified.
Form 7-R goes in through NFA's Online Registration System with the USD 500 fee, together with the NFA membership application and, for each principal and AP, Form 8-R, fingerprints and USD 85.Form 7-R, USD 500, Form 8-R.
NFA reviews the procedures, the internal controls and the capital, and may ask for bank statements, ledgers and wire advices. It approves an RFED only when every requested item is approved.Every requested item approved.
After registration the firm files its organisational chart and risk policies within 60 days and monthly Form 1-FR-FCM reports within 17 business days. FDM dues run from the day it first offers to be a counterparty.Org chart in 60 days, monthly reports.
Capital has to be demonstrated to NFA before an RFED is registered (17 CFR 5.7(a)(2)), and NFA's approval comes only after its review of every item it has asked for. We confirm the timing per case once the capital and the procedures are in place.
Run from our Miami office.

Which activities make the firm an RFED, an FCM or an introducing broker, and which products leave the US offer: CFDs on indices, commodities, shares and crypto.RFED, FCM or IB; CFDs out.
Adjusted net capital planned above the USD 22 million early-warning level, a Form 1-FR-FCM certified within 45 days of filing, and the source-of-assets letter under CFTC Reg. 1.10.Above USD 22M, certified financials.
Form 7-R, the membership application and Member Questionnaire, Form 8-R and fingerprints for each principal and AP, and the procedures NFA lists, from AML to electronic order routing.Forms, fees, procedures.
A records office in the United States under a resident principal and AP, a Chief Compliance Officer, daily reports to NFA and order data to FORTRESS from the first trade.Resident principal, CCO, reporting.






Taxation of forex brokers in the USA.
A US broker pays federal income tax at 21% of its taxable income, state taxes come on top, and dividends to a foreign parent bear 30% unless a treaty lowers the rate.
IRC § 11(b), as amended by Pub. L. 115-97, sets corporate tax at 21% of taxable income for taxable years beginning after 31 December 2017. IRS Publication 542 applies the same 21%.IRC § 11(b).
State and local corporate income and franchise taxes come on top of the federal rate and differ from state to state. We confirm them for the state of incorporation before the model is final.By state of incorporation.
Dividends paid to a foreign person are FDAP income, taxed at 30% of the gross amount and generally withheld at source under IRC §§ 1441-1443, on Forms 1042 and 1042-S. A treaty or the Code may lower the rate or exempt the payment.Unless a treaty lowers it.
A foreign corporation is taxed under § 11 only as § 882 provides (§ 11(d)). Since foreign entities may register with the CFTC, the choice between a US subsidiary and a registered foreign company is modelled per structure.Taxed as § 882 provides.
Bylaw 1301(e) sets Forex Dealer Member dues by gross annual revenue in the latest certified statement: USD 125,000 up to USD 5 million, USD 250,000 to USD 10 million, USD 500,000 to USD 25 million, USD 750,000 to USD 50 million and USD 1,000,000 above that.USD 125,000-1,000,000 by revenue.
FORTRESS assesses USD 0.001 per order segment, counting each order added, modified, cancelled or filled, under the bylaw as amended to 1 July 2026. A late forex report costs USD 1,000 per business day.USD 0.001 per order segment.
*As of 2026 per the Internal Revenue Code (United States Code, 2024 edition), IRS Publication 542, the IRS's guidance on NRA withholding and FDAP income, and NFA Bylaw 1301 as amended to 1 July 2026. Group and founder-level outcomes are modelled per structure.
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Builds the application itself: RFED entity, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed broker.
Active across our channels.
Get your forex license in the USA with expert support.
Full-service assistance - from the role question and the capital plan to the NFA file, the Form 7-R filing and the US records office - run through our Miami office.
Get a consultation →Is the USA the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Founders' questions on the CFTC, NFA and FX-only dealing.
Who has to register as an RFED?+
Any firm that is, or offers to be, the counterparty to retail forex transactions, other than banks, broker-dealers, futures-focused FCMs and financial holding companies (17 CFR 5.1(h)(1)). Retail means anyone who is not an eligible contract participant, which NFA says includes individuals with assets of less than $10 million and most small businesses.
Does an STP model avoid RFED registration?+
No. NFA's guide says that no Forex Dealer Member using straight-through processing can suggest it is not the counterparty to a customer's trade, and 17 CFR 5.2(c) bars the counterparty from exercising discretion over the customer's account. An STP dealer meets the same USD 20 million capital floor.
Can a US forex dealer offer CFDs to retail clients?+
No. Off-exchange swaps with customers who are not ECPs are unlawful under CEA § 2(e), and leveraged retail commodity transactions are treated as futures under § 2(c)(2)(D). In its order of 13 July 2020 the CFTC found an app's digital-asset and FX contracts to be swaps and imposed a civil penalty of $150,000.
How long does a forex license in the USA take?+
As long as NFA's review takes: an RFED is not approved until NFA has reviewed and approved every item it requests, and the capital must be demonstrated to NFA before the firm is registered (17 CFR 5.7(a)(2)). We set the timing per case once the capital and the procedures are ready.
What does a forex license in the USA cost?+
Mostly capital: at least USD 20 million of adjusted net capital, and NFA expects an applicant above the USD 22 million early-warning level. NFA charges USD 500 for Form 7-R and USD 85 per principal or AP, then FDM dues of USD 125,000 to USD 1,000,000 a year plus FORTRESS fees. Our fees are confirmed in the quote.
What leverage can a US forex dealer offer?+
Security deposits of at least 2% on the ten major currencies and 5% on all others, which works out at 50:1 and 20:1 (NFA Financial Requirements Section 12, amended 18 March 2026). A pair with one non-major currency, such as USD/MXN, takes 5%, and NFA's Executive Committee may raise the rates temporarily.
Can a foreign broker serve US clients from offshore?+
Not without registering. A foreign firm that offers to be the counterparty to US retail customers, or solicits them, needs CFTC registration and NFA membership, and the CFTC's RED List names foreign entities that appear to need registration but do not have it. Once registered, it follows the same rules and keeps a US records office.
Can a US dealer promise negative balance protection?+
No. Under 17 CFR 5.16 an RFED, FCM or IB may not represent that it will guarantee a customer against loss or limit the loss, and the risk statement warns that customers may lose more than they deposit. A dealer that advertises automatic liquidation must set it so accounts avoid a deficit in all but the most extraordinary market conditions.
The USA or the UK for a retail broker?+
The UK, if the plan includes CFDs: an FCA permission covers CFDs and rolling spot forex, with £750,000 of own funds for dealing on own account and retail leverage of 30:1 to 5:1 under PS19/18. The USA allows retail FX alone, at USD 20 million of adjusted net capital; its case is US retail customers, whom no offshore licence reaches.
Why Prifinance for the USA?+
We settle the role question first, RFED, FCM or introducing broker, and take CFD lines out of the US offer before anything is filed. Then we build the NFA file around the capital, the Form 1-FR-FCM and the procedures NFA lists; the work runs through our Miami office.
Who registers?+
Any counterparty to retail forex.
STP model?+
Still the counterparty; same rules.
Retail CFDs?+
Not available; FX only.
How long?+
Per case, after NFA's review.
Cost?+
USD 20M capital; dues from USD 125,000.
Leverage?+
50:1 majors, 20:1 others.
From offshore?+
Same registration, or the RED List.
Loss protection?+
Cannot be promised under 5.16.
Or the UK?+
UK for CFDs; USA for US retail FX.
Why you?+
Miami office, role question first.
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which US role fits your model, RFED, FCM or introducing broker, and what it will cost.
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA) or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.