# What is NFA?

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

- Source: https://pipvalley.com/glossary/nfa
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

For prop firms, the NFA matters mainly through counterparties. Futures commission merchants, introducing brokers, commodity trading advisors and pool operators that a futures prop firm works with are typically NFA members, and their status can be checked in the NFA's public BASIC database.

NFA rules govern how its members communicate with the public, including promotional material. Firms partnering with NFA members may find their partners apply those standards to joint marketing.

Whether a prop firm itself needs to register depends on its activities; this is a question for US counsel, not something to assume from a competitor's setup.

## Why it matters

Checking a broker or partner's NFA status takes minutes and tells you who you are dealing with. If you mention a regulated partner on your site, name the entity exactly and link to its registration record rather than implying that your firm itself is regulated.