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Based in Exeter - working across prop trading firms worldwide

Glossary · Compliance

CFTC

  • Also called
  • Commodity Futures Trading Commission
  • CFTC Rule 4.41
  • hypothetical performance legend

What it means

For prop firms, the CFTC matters in two ways. Futures prop firms operate in markets the CFTC oversees, and its rules on presenting simulated results, such as the hypothetical performance legend in CFTC Rule 4.41, are widely reflected in futures prop firm disclosures.

The CFTC also brought an enforcement action in 2023 against Traders Global Group, the operator of My Forex Funds, which drew industry attention to how retail prop firms are structured. The case was later dismissed after the court sanctioned the agency; read the docket and orders rather than summaries before drawing conclusions.

Whether and how CFTC rules apply to a given prop firm depends on its structure, products and customers; this is a question for US counsel.

Related terms

Read these next.

Compliance

NFA

The NFA (National Futures Association) is the US self-regulatory organization for the derivatives industry, whose members include brokers, introducing brokers and advisors.
Compliance

Risk disclosure

A risk disclosure is the statement a prop firm publishes explaining that trading is risky, that accounts are simulated where they are, and that results are not typical or assured.
Compliance

Marketing claims

Marketing claims are statements a prop firm makes to sell its programs, such as payout totals, pass rates, speed and income; each must be accurate, sourced and not misleading.
Evaluations

Simulated funded account

A simulated funded account is the post-evaluation account a prop firm gives a trader: trades run in a simulated environment and the firm pays performance rewards on results.
Platforms

Rithmic

Rithmic is a futures market data and order routing provider that many futures prop firms use to connect traders' platforms to simulated and live accounts.

On your website

Where this shows up on a prop firm site.

Feature

Trust center

One place for the facts a cautious trader checks: the legal entity, address, people, policies, restricted countries and how payouts work.
Tool

Prop Firm Disclaimer Generator

Draft the simulated-trading and risk disclaimer every prop firm page needs, for your lawyer to review.
Guide

Why Are Prop Firms Banning US Traders?

Why many CFD prop firms stopped serving US traders: MetaQuotes in 2024, cTrader in 2026, legal caution after the CFTC case, and what it means for founders.

Looking for a prop firm to trade with, not a website? Compare firms on PropFirmPal, the comparison site our founder owns.Go to PropFirmPal →

All glossary termsGuides

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