What does NFA stand for?

Not financial advice

In discussions about investments on social media and forums, you might come across the term NFA, which stands for “not financial advice.” This is a disclaimer used by people who share their opinions on various investment opportunities like stocks, cryptocurrencies, and bonds. They use NFA to make it clear that what they’re saying should not be considered as legal financial advice.

Why is this important? Well, in the U.S. and some other countries, there are strict laws about who can legally give investment advice. These regulations are in place to help protect everyday investors from making poor investment decisions based on bad information.

So, when you see NFA in a post, it’s basically the poster’s way of covering themselves. They’re saying, “Hey, this is just my opinion, don’t take it as gospel.” This helps them avoid any legal trouble for giving unlicensed financial advice.

And just to be clear, this explanation of what NFA means is also not financial advice.

Example for using ‘NFA’ in a conversation

Hey, have you heard about that new cryptocurrency?

Yeah, I have! But remember, NFA. It’s not financial advice.

Oh, got it. Thanks for reminding me!

No problem! Just want to make sure we’re on the same page. 😊