Financial Industry Regulatory Authority
FINRA · United States · Established 2007
Financial Industry Regulatory Authority (FINRA) is the financial regulator of the United States, established 2007. It caps retail leverage at 1:50, requires negative balance protection and segregated client funds, and compensates clients up to USD 500,000 if a firm fails.
Check a firm's licence yourself
What this licence gets you
The rules a firm has to follow to keep this licence. A dash means we hold no answer on file, which is not the same as a no.
- Maximum leverage, retail
- 1:50
- Maximum leverage, professional
- —
- Compensation if the firm fails
- USD 500,000
- Negative balance protection
- Required
- Client funds held separately
- Required
- Hedging
- Not permitted
- FIFO order closing
- Not mandatory
- Supervision covers
- U.S. securities broker-dealers (equities, options, bonds; forex only via dual registration)
- Body type
- Private non-profit SRO (government-delegated authority)
About FINRA
The Financial Industry Regulatory Authority (FINRA) is a U.S. self-regulatory organization (SRO) overseeing all securities firms and brokers doing business with the public, enforcing SEC rules on margin, transparency, and conduct. It does not directly regulate retail forex (handled by CFTC/NFA), but forex brokers must register as introducing brokers if offering securities. FINRA's robust surveillance, exams, and disciplinary powers make it a cornerstone of U.S. investor protection.