US Broker License

The US financial services industry is heavily regulated and adopts the structure of three main administrative agencies to ensure the development and promotion of a safe and secure financial services market across theUS. As the US securities and financial services industries are so vast, it is advisable to enlist the guidance of a professional consultancy firm to support you in your US broker license application and in company compliance with the relevant laws.

For information on how DeltaQuest can provide comprehensive consultancy on all areas of US Broker licensing, Contact DeltaQuest.

US Broker Firms, the CFTC and the NFA

There are three primary bodies responsible for the safe and efficient operation of the financial services industry in the US. Together the three administrative agencies operate in co-operation and are responsible for the supervision, monitoring, surveillance and development of the US financial services industries. The three bodies are; The Securities and Exchanges Commission (SEC), the Commodities and Futures Trading Commission (CFTC), and the National Futures Association (NFA).

The Securities and Exchanges Commission are responsible for the auditing and regulating of US broker firms, while the Commodities and Futures Trading Commission is the authoritative body charged with the responsibility of issuing US broker licenses to broker firms.

It should be noted that in order to be a US forex broker you must obtain the US broker license and also be a member of the National Futures Association.

The CFTC was established in 1974 by U.S Congress and is an independent agency responsible in particular with the regulation of the commodity futures markets in the US. Over recent years the CFTC’s scope has been amended and expanded, most recently as a result of the Commodity Futures Modernization Act 2000. However the principle areas of focus for the CFTC are to protect the market and its investors from fraud, manipulation and risk.

Obtaining a US Broker License

Obtaining a US broker license can be a complex procedure and complying with the relevant regulations from both the SEC and CFTF are vast and can be difficult to properly comprehend. The main thing to be noted is that obtaining a US broker license is paramount to operating a US forex broker firm, while membership of the NFA is also essential. All applications for a US broker license are made to the CFTC and generally the following documents are also required: company Memorandum and Articles of Association, documents of the internal and external operations of the company, the results of a fit and proper test and a company business plan. A company set up in the US for the purpose of forex activity is essential to the application of a US broker license.

DeltaQuest are available to help you understand how the three authoritative bodies can affect the operations of your forex broker firm. We can also advise you on how to manage your forex firm in compliance with all the relevant laws and regulations. Our team of specialist consultants will assist you in yore US broker license application and will ensure the license is obtained in both a timely and professional manner.

 Print This Page