Commodities Futures Trading Commission ( CFTC )

The Commodities Futures Trading Commission was created by the United States Congress in 1974.

The purpose of the Commodity Futures Trading Commission (CFTC) is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options. In addition, the CFTC fosters open, competitive, and financially sound futures and option markets.

In recent years, due to the number of increasing fraudulent operations, the CFTC has also placed companies involved in the trading of foreign exchange contracts under review. The CFTC and the National Futures Association ( NFA ) have by working together brought the forex trading industry largely under control.

Before opening a commodity trading account it is a good idea to check the record of the company you are considering trading with against the records of the CFTC. If the company has a record of serious regulation and operating problems the CFTC will probably have a report on that firm that will be of interest.

By taking this one simple step prior to opening an account you may well vastly increase the odds in your favor of avoiding a fraudulent trading operation.

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