Best Forex Brokers in United States (USA)
Finding the best forex broker in the USA to get you started trading in the United States is tough. The US Forex market is highly regulated and thus very few Forex brokers are able to offer Forex services to US citizens. As a result, most Forex brokers have a disclaimer saying they do not allow US clients. However, there are some Forex brokers that have met the US regulatory obligations enabling them to operate freely in the US.
As a matter of fact, Forex brokers in the US are viewed as some of the safest due to the high level of regulation. Some experts actually argue that if you want a safe forex broker, you need to investigate if the broker is allowed to operate in the US.
There are two regulatory authorities that regulate the Forex market in the US. These are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). All Forex brokers that wish to operate within the US or offer services to US citizens must be registered with the NFA and CFTC. The two regulatory authorities use the Dodd-Frank Act that was introduced in 2010 to govern Forex trading in the US.
Top Brokers Minimum Deposit Max Leverage Regulations $100 1:400 MiFID VISIT BROKER $50 1:200 IFSC VISIT BROKER $100 1:30 ASIC, CySEC, FCA, FSB, ISA, MAS VISIT BROKER.
Let’s review some of the top-rated forex trading brokers in USA and compare their features, so you can find the right one for your trades.
Compare the Top Forex Brokers in the US in 2021.
Here’s a list of the best forex brokers in USA that you can feel confident trading with in the United States.
IG.
The IG Broker was founded in 1974 and headquartered in London, UK. It is one of the best-known Contract for Difference (CFD), Forex, shares, commodities, and cryptocurrencies brokers in the world. It is normally open for trading 24/7, meaning that traders can trade even during the weekends.
It is regulated by an array of regulatory authorities including the Financial Conduct Authority (FCA) in the UK, the Federal Financial Supervisory Authority (BaFin) in Europe, the Swiss Financial Market Supervisory Authority (FINMA) in Switzerland, the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) in the USA, the Australian Securities and Investment Commission (ASIC) in Australia, the Financial Markets Authority (FMA) in New Zealand, Dubai Financial Services Authority (DFS) in the United Arab Emirates (UAE), the Monetary Authority of Singapore (MAS) in Singapore, the Japanese Financial Services Authority (FSA) in Japan, and the Financial Sector Conduct Authority (FSCA) in South Africa.
The broker is run by IG Markets Limited.
Traders can choose to use their web-based platform, Mobile trading platform or MetaTrader 4 platform for their trading activities. It also offers a platform known as the L2 dealer platform where CFD share traders have direct market access (DMA). It also offers the ProRealTime platform for traders to access advanced market analysis tools.
Account Stats.
Demo Account: Yes Minimum deposits allowed: $0 for bank transfers and $300 for credit/debit cards and PayPal. Base currencies: USD, AUD, EUR, GBP, SGD, and HKD. Minimum lot sizes: 01 Account types: Standard Account and forex direct account. Payment options: Local Bank Transfers, Paypal and credit/debit cards. Commissions: Commission is charged on shares trading; Euro and UK traders pay 0.1% while US traders pay 2 cents. The minimum commission being $10 Volume Commission Rebates: $5-$11 per million traded depending on the tier and account type No Commission Account Spreads From (EUR/USD): 6 pips.
Pros.
It is highly regulated by top tier regulatory authorities and it’s even listed on the stock exchange market, which makes it a secure broker to trade with. It is open even during the weekends, giving traders the opportunity to maximize their trading returns. It offers cryptocurrencies. Have lucrative commission rebates. Its minimum initial deposit is quite favorable for those with little to invest. Has negative balance protection.
Cons.
It has a High stock Contract for Difference (CFD) fees. It offers relatively low leverage of up to 200:1 compared to other Forex brokers. L2 dealers must have a minimum balance of $2000. Traders pay $40 per month to use the ProRealTime platform.
Bottom line.
IG Broker could be a perfect choice for traders looking to invest any amount of money in Forex trading even as little as $1. In addition, it allows traders to take advantage of weekends, which is not common with other brokers. Most Forex brokers are closed over the weekends.
However, if a trader wants to use the ProRealTime platform, it is advisable that he/she be very active so that they can be exempted from the $40 monthly charges.
Forex.com.
Forex.com is owned by Gain Capital Holding, Inc. (GCAP), which is a New York Stock Exchange-listed company. It was started in 2001.
It offers Forex, shares, index and commodity CFDs as well as for cryptocurrencies.
It is regulated by a number of regulatory authorities including the UK Financial Conduct Authority (FCA) in the UK, and the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) in the USA.
Traders can use the MetaTrader 4/5 platform or the ForexTrader Pro platforms, which include the Forex.com web trading platform, and the Forex.com mobile trading platform.
Account Stats.
Demo Account: Yes Minimum deposits allowed: $100. Base currencies: USD, EUR, GBP, CAD, CHF, AUD, and JPY. Minimum lot sizes: 01 Account types: Standard Account, Commission Account, and DMA Account. Payment options: Bank Transfer, Credit/Debit cards and PayPal. Commissions: 1% – 0.15% with the minimum commission being $10 for shares and $5 commission per 100K for the commission account. Volume Commission Rebates: None No Commission Account Spreads From (EUR/USD): 1 pips.
Pros.
Its web-based trading platform has TradingView charts built into it. It’s highly regulated It offers superior trade executions Traders get professional guidance and support from the support team and account managers. The high-volume traders can earn up to 15% cash rebates on trades in addition to other exclusive benefits if they enroll with the Active Trader Program.
Cons.
The spreads are normally higher than most of the international brokers. It does not have negative balance protection. US traders are not allowed to trade cryptocurrencies, though it is allowed for traders from other countries.
Bottom line.
Forex.com is probably one of the most trusted Forex brokers and given its reputation for professional guidance, it is a great choice for Forex beginners.
It is however recommended for highly active traders. There is an inactivity charge for accounts that stay inactive for one year.
Nadex, better known as the North American Derivatives Exchange is based in Chicago, USA. It offers binary options, Stock, Forex, Indices, and Commodities. It, however, offers three trading methods namely: Binary Options, Call Spreads, and Touch Bracket Contracts.
Contrary to other Forex service providers that operate as brokers, Nadex is an actual exchange regulated in the US. It is regulated by the Commodity Futures Trading Commission (CFTC) in the USA.
Traders who wish to trade on Nadex can choose to either use the Nadex for the Desktop platform or the NadexGO, which is a mobile trading platform.
Account Stats.
Demo Account: Yes Minimum deposits allowed: $250. Base currencies: Minimum lot sizes: N/A. Account types: individual and business accounts. Payment options: Bank Transfer (ACH), Debit Cards, Wire Transfer and Paper Check for US citizens. Non-US traders can make deposits using International Bank Transfer (Wire), and Debit Card and make withdrawals only through bank wire transfers. Commissions: Volume Commission Rebates: None No Commission Account Spreads From (EUR/USD): N/A.
Pros.
It is regulated by the CFTC making it a secure exchange to trade with. It offers a wide array of technical analysis tools. It does not charge any broker commissions. Each contract costs only $1.
Cons.
The Nadex business accounts are not available for non-US citizens. Limited deposit and withdrawal options No leverage trading.
Bottom line.
Nadex is a great choice for US traders especially those that to have a different taste. However, it is recommended for experienced traders who know how to trade Binary Options, Call Spreads and Touch Bracket Contracts.
FXChoice.
FxChoice broker was established in 2010 and its headquarters is in Belize. It is managed by the FX Choice Limited.
It is registered with the International Financial Services Commission (IFSC), which is a government agency in Belize responsible for regulating financial businesses.
The broker is a true ECN broker with very competitive spreads. The standard account has spread of 0.5 pips while the pro account spreads range from 0 pips. In addition, it only works with Metatrader trading platforms. Therefore a trader can choose to either use the Metatrader 4 or Metatrader 5 platform. The platforms are available for both desktop and mobile devices.
Account Stats.
Demo Account: Yes Minimum deposits allowed: $100 Base currencies: USD, CAD, GBP, AUD, EUR, Gold, Ethereum, Bitcoin Cash, Bitcoin, Litecoin and XRP Minimum lot sizes: 01 lots. Account types: Classic Account and Pro Account Payment options: Bank Transfer, Skrill, Neteller, Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple (XRP), Tether, Credit/Debit cards, Fasa Pay, Perfect Money, Paysafecard, Qiwi, AstroPay, VLoad, Poli, SticPay, and airtm. Commissions: $3.5 per notional amount of $100 000 for the pro account holders. Volume Commission Rebates: None No Commission Account Spreads From (EUR/USD): 5 pips.
Pros.
It has tight spreads that range from 0 pips It offers CFDs in a wide array of assets that include Forex, Cryptocurrencies, Indices and Spot Metals. There is Swift market execution It is a No-Dealing-Desk (NDD) Broker which ensures that there is no conflict of interest. It has competent 24/5 customer support. It offers price improvements on all types of orders. It allows accounts to be opened using cryptocurrencies as the base currency.
Cons.
Offers relatively low leverage of up to 1:200 Pro account holders pay a $3.5 commission per $100,000 trade.
Bottom line.
FxChoice is a perfect choice for traders who want a purely Metatrader broker that offers true ECN services. It only supports MT4 trading platforms.
It’s a great choice for starters as well as professionals, especially from the USA. However, it’s also worth noting that it does not have regulated by a major jurisdiction.
Interactive Brokers.
Interactive Brokers LLC (IB) is a US-based Forex broker. It is managed by the Interactive Brokers Group, Inc. It is one of the largest trading platforms operated in the US. Its trading assets include Forex, stocks, futures, EFPs, bonds, futures options, options, and funds.
Its headquarters is located in Greenwich, Connecticut. However, it has other offices in other cities across the US.
The broker is regulated by the US Securities and Exchange Commission, the New York Stock Exchange, National Futures Association, Chicago Mercantile Exchange, the Financial Industry Regulatory Authority, the Commodity Futures Trading Commission and the Chicago Mercantile Exchange.
It offers a variety of trading platforms, which include the Desktop TWS, IBKR Mobile and the IBKR WebTrader. There are also a number of other platforms that come in handy for Interactive Brokers clients when it comes to managing their accounts; these include the IBot and their Client Portal.
Account Stats.
Demo Account: Yes (as Free Trial). Minimum deposits allowed: $0 Base currencies: Minimum lot sizes: Account types: Client Accounts (the IBKR PRO and the IBKR LITE), Broker Account, and Proprietary Trading Group Account. Payment options: Paychecks, Pension and Social Security Payments for IBKR (non-retirement) accounts, Debit Cards and Bank Deposit Sweep Program. Commissions: for the IBKR Pro account there is a minimum of $10 monthly commission for accounts with $100,000 or less, and a minimum of $20 monthly commission for accounts with $2,000 or less. Volume Commission Rebates: If Interactive Brokers receives a rebate for a trade in a Regulation NMS stock at a liquidity provider, dark pool, or market-maker in the IB ATS, the broker passes the entire rebate to Tiered-commission customers as a venue rebate. Zero Commission Account Spreads From (EUR/USD): 1 pips.
Pros.
It is regulated by a number of regulators in the US. Traders can choose from a wide variety of assets. It offers strong research and trading tools. It offers over 4000 no-transaction-fee mutual funds. For the IBKR Lite account, there is no inactivity fee.
Cons.
Its desktop trading platform is somehow complex. Its account opening process is quite complicated. It only allows deposit and withdrawal via bank transfer methods.
Bottom line.
Interactive brokers is one of the best US Forex trading brokers. It is regulated by quite a number of top-tier regulatory authorities and thus considered to be among the safest brokers.
However, the broker has a slightly complex trading platform and it is recommended for the advanced traders.
TradeStation.
TradeStation Group, Inc. is a securities and futures brokerage firm headquartered at Plantation, Florida. It is the parent company of TradeStation Securities, Inc., TradeStation Technologies, Inc and TradeStation Crypto, Inc. The broker also has other offices in New York, Texas, Chicago, Richardson, Sydney, Costa Rica, and London.
The broker offers in Exchange Traded Funds (ETFs), Stocks, IPOs, Options, Futures, future options, mutual funds and bonds.
Traders must access the Tradestation trading platforms to trade with TradeStation. These platforms include the TradeStation desktop 10 platform, TradeStation web platform and TradeStation mobile platform.
Account Stats.
Demo Account: Yes Minimum deposits allowed: $500 Base currencies: USD, EUR, GBP, AUD, CAD, HKD, SGD, CHF, and JPY Minimum lot sizes: N/A Account types: Cash Account, Margin Account, Day Trading Account, Individual account, joint account, retirement account, and entity account. Payment options: Smart Transfer, Wire Transfer, Check Deposit, And Electronic Transfer (ACAT) Commissions: None Volume Commission Rebates: None No Commission Account Spreads From (EUR/USD): N/A (Instead charges $1.5 per contract).
Pros.
Simple user-friendly trading platform. The fees charged on stocks and ETFs is relatively low. It also provides its clients with High-quality educational tools.
Cons.
It has a relatively high initial deposit of $500. There is a withdrawal fee of $35, which is quite high. It doesn’t offer Forex Trading.
Bottom line.
TradeStation offers some of the best services for Exchange Traded Funds (ETFs), Stocks, IPOs, Options, Futures, future options, mutual funds, and bonds trading in the USA. It also has a simple user-friendly trading platform where traders can easily trade.
However, due to its required minimum deposit of $500 USD, it is recommended for experienced traders; the ones that will be able to manage the funds well to avoid losing everything.
Common US Regulated Forex Broker Questions.
Here are the most commonly asked questions about the best American forex brokers regulated in the United States.
Can you trade Forex in the USA?
Yes. You can trade Forex USA.
Though Forex trading is legal in the USA, brokers have to comply with very tough regulations to be allowed to do business there. Therefore, traders have to look for a Forex broker that is registered with the regulatory authorities in the USA. In addition to the Financial Crimes Enforcement Network (FinCEN), each state also has its own regulator that brokers should be registered with.
Therefore, apart from looking for a broker that is registered with a regulatory authority in the US, you have to verify if the broker is authorized to operate in your state.
Is Forex Tax-Free in the USA?
No. US residents that trade Forex is liable to pay tax out of their trading returns.
Normally, there are two different types of currency trading and they are taxed differently in the USA. The first method of trading currencies is by trading on currency futures on regulated commodities exchanges and these are treated as the normal commodities and futures according to IRC section 1256 contracts.
The other method of trading currencies is by trading cash (spot) Forex. Here you are liable to pay tax as stipulated under the IRC section 988 contracts.
You, therefore, have to be careful when trading forex to ensure that you clearly understand the type of broker you are registering with and the type of assets that you trade since they will determine your taxation.
Is Forex Illegal in the US?
No. Forex is NOT illegal in the US.
US residents are free to trade Forex as long as they choose a registered Forex broker. The US has been quite successful in ensuring that almost all the brokers offering Forex services to its residents are registered with their regulatory authorities. This applies to both US-based and non-US-based brokers. They have to be registered with the regulatory authorities in the US to ensure that they comply with all the stipulated regulations.
Also, once you register with a forex broker in the US, you are liable to pay tax out of your trading proceedings.
How to Choose a Forex Broker (as a US trader)?
The choice of a Forex broker is always very important not only to US traders but to any other Forex trader. The choice of the forex trader determines your Forex trading experience.
To choose a Forex trader as a US trader, you need to look for those brokers that allow US residents. Most Forex brokers will have a disclaimer at the bottom of their landing page (on their website), saying that they do not allow US citizens. As a US trader, you should not register with such brokers since you shall have problems depositing or withdrawing your funds from them.
Once you get a broker that allows US citizens, you can then go ahead and look at the services that the broker offers to find out if they match with your needs. You can look at things like the minimum initial deposit required, the deposit and withdrawal options available, eas of trading on the platform, the fees, etc.
Best Forex Broker for Beginners in the US?
As a Forex beginner in the US, you should look for a broker that offers a simple to use trading platform FxChoice, Forex.com and IG Brokers.
Secondly, it is advisable to look for a trader that has a demo account where you can practice trading before committing your hard-earned money. In the demo account, you trade with virtual funds and there is, therefore, no fear of losing funds. Also, you are able to practice how to trade as you also get aquatinted with the broker’s trading platform.
It is also advisable to go for a trader that allows the lowest initial deposit. At times as a beginner, you may not have much to start off with and you need a broker that can allow you to trade with whatever you have.
You should also look for a broker that offers a micro account. In a micro account, you will be able to trade with the lowest lot size while using the highest leverage.
What are the General USA Regulations for Forex?
There are to regulatory authorities that govern Forex trading in the US. These are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). All Forex brokers operating in the US must register with these two institutions regardless of whether the broker is based in the US or not but as long as they want to offer trading services to US citizens.
The NFA offers an online verification system for brokers called Background Affiliation Status Information Center (BASIC) that Forex brokers can use for verification on compliance with the various regulations.
Summary.
The US market is normally much regulated and not very many Forex or financial brokers are able to offer their services to the residents. However, the brokers that are registered in the US are termed as some of the safest brokers due to the regulations.
To choose the best broker, you need to first identify your needs. Do you want to trade currency pairs only or do you want to trade other assets as well? What is your financial capability; how much funds can you commit to trading? When are you available for trading?
Once you answer these questions, you shall be able to choose a broker that fits trading needs.
0.1 Compare the Top Forex Brokers in the US in 2021 0.1.1 IG 0.1.1.1 Account Stats 0.1.1.2 Pros 0.1.1.3 Cons 0.1.1.4 Bottom line 0.1.2.1 Account Stats 0.1.2.2 Pros 0.1.2.3 Cons 0.1.2.4 Bottom line 0.1.3.1 Account Stats 0.1.3.2 Pros 0.1.3.3 Cons 0.1.3.4 Bottom line 0.1.4.1 Account Stats 0.1.4.2 Pros 0.1.4.3 Cons 0.1.4.4 Bottom line 0.1.5.1 Account Stats 0.1.5.2 Pros 0.1.5.3 Cons 0.1.5.4 Bottom line 0.1.6.1 Account Stats 0.1.6.2 Pros 0.1.6.3 Cons 0.1.6.4 Bottom line 1.0.1 Can you trade Forex in the USA? 1.0.2 Is Forex Tax-Free in the USA? 1.0.3 Is Forex Illegal in the US? 1.0.4 How to Choose a Forex Broker (as a US trader)? 1.0.5 Best Forex Broker for Beginners in the US? 1.0.6 What are the General USA Regulations for Forex?
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