Introducing Broker (IB) Registration
An introducing broker (IB) is an individual or organization that solicits or accepts orders to buy or sell futures contracts, commodity options, retail off-exchange forex contracts, or swaps but does not accept money or other assets from customers to support these orders.
Registration is required for an IB unless the individual or organization is:
- Registered as and acting in the capacity of an AP;
- Registered as an FCM;
- Registered as a CPO and only operates pools;
- Registered as a CTA and either solely manages accounts under powers of attorney or doesn't receive per-trade compensation; or
- Is a non-U.S. resident or firm with only non-U.S. customers and the firm submits all trades for clearing to an FCM.
All registered IBs must be NFA Members.
Registration Requirements for IBs
To register as an IB and become an NFA Member:
- Designate a Security Manager in order to obtain secure access to NFA's Online Registration System (ORS)
- Complete online Form 7-R
- Complete online NFA membership application
- Satisfy compliance requirements for IB applicants
- Complete online Annual Questionnaire
- Pay a non-refundable application fee of $200
- Pay non-refundable IB membership dues
Registration Requirements for Principals and Associated Persons (AP) of IBs
- Complete online Form 8-R for each principal and AP
- Submit fingerprint cards
- Satisfy proficiency requirements for each sole proprietor, AP and forex AP; effective January 31, 2020, swap APs will be required to complete NFA's Swaps Proficiency Requirements by the compliance date of January 31, 2021
- Pay a non-refundable application fee of $85 for each principal and AP
An application fee for principals and APs is not required if the individual is currently registered with the CFTC in any capacity or is listed as a principal of a current CFTC registrant. Only one application fee is required if the individual is filing an application as both an AP and principal. One principal must be an AP. One principal of a forex IB must be a forex AP. One principal of a swap IB must be a swap AP.