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  • Checking Your Futures Broker, Financial Advisor, or Managed Futures Firm for Fraud 0 comments
    Feb 19, 2011 7:33 AM
    by Jeffrey Lin,

    Investors and traders focus a lot on finding the lowest commission broker or the fund manager with the best performance to make you money. But hopefully the lesson everyone learned from the Bernie Madoff ponzi scam is you should always do a background check on the person, firm, or broker you do business with.  Whether you're already involved in the futures market (which includes commodities, bonds, and FOREX in the U.S.) or are considering diversifying your investments into futures, start your research with the NFA's B.A.S.I.C. database.  The NFA is the National Futures Association, the self-regulatory organization for the U.S. futures industry and works closely with the CFTC (U.S. Commodity Futures Trading Commission) and all U.S. Futures Exchanges.  We at MarketHEIST go through a painstaking process of evaluating and reviewing futures brokers, money managers, and countless other investing services for approved use by the public.  We've found the NFA's B.A.S.I.C to be a great starting point for researching any individual or firm that SHOULD Be registered to do business.

    National Futures Association

    The B.A.S.I.C. database includes information from NFA, CFTC, and U.S. Futures Exchanges about the status of all current and former CFTC registered members (some 150,000 individuals and 10,000 firms).  Find out what types of business your broker or manager is registered for, if any cases were filed against them, business information, addresses, and work history. Thanks to the, we recently also wrote about a crackdown the CFTC issued against 14 Forex Brokers not even registered to do business as Forex Brokers, and many other brokers that let you trade forex, but many are just IB (introducing brokers) passing your business along to other fully registered Forex Brokers.  If you're wondering why we're talking about Forex when the F in NFA stands for Futures?  Well, in the U.S., Forex firms are also regulated under futures regulation by the CFTC and NFA, just like other futures firms, though there's specific Forex-relevant regulation only for Forex firms.

    For a demonstration of how to use the NFA's B.A.S.I.C. to research your futures or forex broker, or managed futures funds you intend to invest in, we've made a tutorial video with more details about B.A.S.I.C.
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