Forex margin at 2–5%… CFTC flags fraud risk from dealers accepting only crypto assets

The U.S. Commodity Futures Trading Commission (CFTC) requires registered futures commission merchants (FCMs) and retail foreign exchange dealers (RFEDs) to maintain minimum margin of 2% of notional value on major currency pairs and 5% on all other pairs in retail over-the-counter forex trading, equivalent to maximum leverage of 50:1 and 20:1 respectively. The standards, adopted in the CFTC's 2010 retail forex final rules, can be set higher by the National Futures Association (NFA) within its discretion. Margin represents the percentage of a trade's notional value posted as collateral, and clients with insufficient account balances may face margin calls or forced position liquidation, with losses amplified when trading large positions on low margin. The CFTC flagged fraud risk at dealers that accept only virtual assets, a category outside these retail forex margin protections. Watch for whether the CFTC extends comparable margin or disclosure requirements to crypto-only dealers and any follow-up NFA guidance on leverage limits.