National Futures Association (NFA) has decided to approve the notice of banning the use of credit cards for deposits and withdrawals in forex and futures accounts for USA accounts starting from 31 January 2015.
"Since our inception, NFA has been committed to protecting investors," says NFA President and CEO Dan Roth. "Forex and futures markets are both high-risk and volatile, and individuals who wish to participate should use only risk capital to fund their accounts. Allowing customers to fund accounts with credit cards encourages them to trade with borrowed money."
According to NFA, the approval is the result of careful consideration by NFA of forex dealer members’ business practices. The overwhelming amount of forex accounts were funded by small retail traders using credit cards and the accounts in questions are not making any profits.
"Over the last decade, NFA has made significant strides in its regulation of the retail forex markets," Roth says. "From the increase in capital requirements to mandating content requirements so that all customers could receive comprehensive and accurate account information, this ban is just another very important step to fulfill our mission to protect customers."