In this article, we’ll be reviewing some of the best Forex brokers in the USA. If you are a U.S resident and want to invest with one of the 5 best Forex brokers in the USA, then this guide can help you.
Forex is a global market that runs 24/7. There are tons and thousands of Forex brokers. Each working under regulatory authority. If a broker doesn’t have a license from the regulatory authority, then it’s a scam and you shouldn’t invest with them.
So, what is the best way to check the broker’s repute?
Most brokers operate in a certain jurisdiction with a regulatory body above them. These authorities help decide whether you should trust the broker. The best way to find about the broker’s credibility is to check with the authorities like ASIC (Australian Securities and Investment Commission), FCA (Financial Conduct Authority), and others.
Generally, Forex brokers are available all over the world. But, there are some places where brokers don’t operate. When you go to some broker’s website, you’ll find the list of countries where they are not operating. In this list, you’ll find U.S.A as well. Why is U.S.A on this list? A question that everyone has in their mind.
According to CFTC’s report financial frauds are increasing in the U.S. Here’s a quick look of CFTC’s data on trading investment-related frauds:
Due to irregularities and scams in the Forex market, U.S.A has a strict policy about Forex brokerage firms. The National Futures Association (NFA) is an independent regulatory authority in the United States and every brokerage firm needs to register itself from the NFA.
Another organization that has a regulatory status for Forex brokers is CFTC (Commodity Futures Trading Commission). It also works to protect every penny of the U.S citizens.
Don’t let them fool you!
Steps for Choosing the Best Forex Broker in U.S.A :
Here are the steps you should consider before choosing any broker as a U.S trader;
- Look for regulations from CFTC and NFA
- Trading price should be low
- Easy to understand the trading platform
- No hidden commissions and fee
So, let’s start our review of the best forex broker in the U.S.A. This review is based on our own experience with the firms and other user reviews about the company.
Here’s the list of best Forex brokers in the U.S.A according to us.
Forex.com is one of the largest brokerage firm in the U.S. The company is owned by GAIN Capital Holdings Inc. Forex.com dominates the overall Forex market in the country.
One of the perks of joining it is that you can start trading with a minimum deposit of $50. It also offers tight spreads and technical indicators.
The firm is regarded for its MT4 platform and ForexTrader platform. Features like web trading and mobile trading are also available.
In January 2011, Forex.com became the first broker in the U.S to disclose its execution quality. What this means is trading with it manages trade execution without any errors.
With licenses from CFTC and NFA, your investment is in safe hands. The firm is multilingual and operates in 29 different languages. With so many positive aspects, we give it 5 stars.
IG is a popular European brokerage firm with headquarters in London. It is a parent company and owns many websites like DailyFX.com and a forex news website. It also owns the North American Derivatives Exchange which operates only in North America.
It recently started its operation in the U.S and already it is proving its worth in the North American market.
Signing up for an account is easy and it takes less than 10 minutes to start trading with IG. You can also open a demo account. The minimum deposit for a live account is $250.
The firm claims that its spreads are lower than its competitors. Statistically, it offers 27% lower spreads. This makes it very popular in the European market.
Founded in 1974, the company is trusted worldwide and in the U.S it is regulated by NFA and CFTC.
Oanda (Olsen and Associates) is another popular brokerage firm headquartered in New York. It offers low market spreads and follows the policy of zero commission.
Its platform offers forex tools and products like analytical tools, MT4 platform, How-to videos, and training sessions. To open an account with Oanda, there is no minimum limit and you can start trading immediately. If you want to practice, it also has a demo account.
One of the features of Oanda is if you invest more, the company will give you a lower spread and high liquidity. It also gives other benefits like free wire transfers.
The company is based in New York, so obviously it is regulated by CFTC and NFA. So, your investment is secure with Oanda.
Trade Station is the parent company of online securities and futures and trading technology. It is a platform built for experienced traders.
It offers a great trading platform and gives zero fees and no commissions. To open an account one needs to make a minimum deposit of $500. It also provides a demo account.
Beginners might find Trade Station a bit intimidating but it has some features which are beginner-friendly.
Headquartered in Florida, it is regulated by CFTC and NFA.
Thinkorswim by TD Ameritrade is another brokerage firm regulated by the U.S authorities. The firm offers more than 100 currency pairs for trading.
The biggest advantage of trading with Thinkorswim is its platform. It has a customizable platform which is ideal for novice traders.
It also offers no hidden fee and commissions and you can open a demo account with it. The minimum deposit fee for opening a live account is $100.
Thinkorswim is a U.S-based company and has licenses from CFTC and NFA.
As our review of the best Forex broker in the U.S.A has come to end, we think that all these firms are well-regulated and have high repute among the traders. You can trade with anyone of these firms without worrying about your investments. For us, Forex.com stands out from the rest due to its various features and ease-of-use.