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

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 -