Hi, I wanted to know if FOREX trading is considered legal in U.S. and if it is, how do I find out if the broker that I am going to deal with is a legal entity? My question is not about profit or losses but more about dealing with a legitimate broker who is licensed to carry out trades in the market on my behalf. I am looking at FXCM, have heard alot about them. But I am more worried about getting into any legal trouble(s). What sort of documentation can I request and may request from the broker to find out if they are really legal and forex trading is legal under the laws of U.S.It doesn't seem like FOREX is illegal but would like to ask people before I contact a lawyer/accountant and then finding out that it is considered an illegal activity by law.Thanks

Forex Trading is legal in the United-States . I'm trading with FXCM and there is absolutely no problem .FXCM will ask you all the documents that they need , like your driver's license etc... The only thing that could be illegal is that that you don't declare your revenue to the IRS . But that's your choice to do so or not . And just by the way , FXCM is one of the biggest brokers so you've got nothing to worry about .

Yes.. Get yourself an account with Oanda.

Anybody can deal in forex. There are no rules that say they can't.However, forex dealers can voluntarily register with the National Futures Association as a Futures Commission Merchant and agree to follow their rules. There is no penalty for not doing this, but I wouldn't deal with anybody who has declined to register. What you can do to check is to ask if they are a Futures Commission Merchant and what is their NFA number. If they don't have one, keep looking. I'll save you some trouble in this case. FXCM is a registered FCM.

Yes, Forex IS legal in the United States. FXCM is a reputable broker but many have their complaints - explore your options before choosing FXCM or any other Forex broker. Forex is regulated by the CFTC(outsourced to NFA) and increased authority over the Forex market was granted by congress to the CFTC on May 22 of this year - http://www.cftc.gov/customerprotection/fraudawarenessandprevention/forex/index.htm -

Forex is generally seen as being slightly easier than stocks because of the broad nature of it. You don't have to worry about which stocks are gaining or falling - you've just got to keep your ear to the ground about the latest world events that might change the currency rates (I.E oil prices, economic difficulties & government spending).If you're interested in getting into Forex, I recommend you take a look at http://www.forexfromscratch.com which has a really interesting free book about starting off in Forex. It's a step-by-step beginners guide which is 100% free. Just go to the homepage and download it for free - you'll be able to avoid most of the beginner pitfalls with it.Hope this helps?