Best US Forex Brokers

The global forex market, the largest financial market worldwide, sees the U.S. Dollar (USD) as its most traded currency. Recent data from the Council of Foreign Relations reveals that the USD is involved in over 50% of trades in the forex market, which boasts a daily average volume surpassing $7.5 trillion. With forex trading gaining popularity in the United States, an increasing number of online brokers now provide currency-related investment opportunities.

Forex traders in the U.S. enjoy the protection of a stringent regulatory framework aimed at safeguarding both consumers and traders against forex fraud. Prior to accepting U.S. traders, forex brokers are required to obtain registration as Retail Foreign Exchange Dealers (RFED) from the Commodity Futures Trading Commission (CFTC) and be regulated by the National Futures Association (NFA) as Futures Commission Merchants (FCM). 

To help you navigate through the sea of options, we have compiled a list of the best US forex brokers. These highly trusted brokers offer competitive spreads, reliable trading platforms, and excellent customer service to ensure a smooth trading experience for U.S. residents.

Quick Look: Best US Forex Brokers

• Best for a Simplified Trading Platform: Trading.com
• Best for Mobile Traders: Plus500
• Best Overall: FOREX.com
• Best for Fast Execution: IG Markets
• Best for Institutional Traders: Interactive Brokers 

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Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Best Forex Brokers That Accept US Clients

U.S. clients have fewer options when choosing FX brokers due to tighter regulations. The following list demonstrates several of the best forex brokers for U.S. clients.

1. Best for a Simplified Trading Platform: Trading.com

Trading.com is becoming the go-to choice if you're seeking a straightforward yet effective trading platform. Tailored for modern traders, it has a user-friendly interface that streamlines trade executions, especially for if you prioritize simplicity over complex features.

Trading.com is a registered Retail Foreign Exchange Dealer (RFED) with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA #0516820), ensuring confidence for traders using the platform. 

Why We Love It: Trading.com offers highly competitive spreads, ensuring cost-efficiency. The platform has an attractive design, easy navigation and provides a seamless trading experience. While advanced traders may find the platform's features somewhat limited, they offer a balanced blend of functionality and user-friendliness, making it a compelling option especially for beginners.

2. Best for Mobile Traders: Plus500

Plus500 is a European-based derivatives broker offering forex trading and more, catering particularly to advanced traders and those who prefer mobile trading. The platform provides comprehensive information on the assets you choose to invest in, making it easy to start trading in the foreign currency market and add currency pairs to your portfolio.

Why We Love It: Plus500 offers a streamlined trading experience that is great for beginners who want a user-friendly platform and may want an expanding selection of educational content. On the flip side there are no stumbling blocks for advanced traders who simply want to sign up and get to work. Plus500 is a also a great option if you are a futures trader and want to trade multiple assets.

3. Best Overall: FOREX.com

FOREX.com is a subsidiary of StoneX (NASDAQ: SNEX) and ranks as the best overall forex broker for U.S. traders. They were founded in 1999, giving them an long standing history of reliability and trust among users.

This broker is regulated in the U.S. by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). They also have oversight from regulators in 6 major world jurisdictions through its subsidiaries.

Why We Love It: FOREX.com truly caters to forex traders, they offer a wide selection of currency pairs, low account minimums, and a notable trading platform. It's a great option if you are looking for a home base for currency trading. FOREX.com offers extremely customizable charting tools a comprehensive education and research center with free forex trading courses for various skill levels.

3. Best for Fast Execution: IG Markets

IG Markets is a leading forex brokerage for U.S clients. The broker was established in 1974 and is one of the biggest forex brokers in the world. IG Markets is part of the IG Group and is listed on the London Stock Exchange under the ticker IGG. It accepts U.S. clients for forex trading although not for other types of trading.

Why We Love It: IG Markets offers low costs associated with trading on the platform and high leverage, which allows U.S clients to trade larger positions for less capital. The company also provides a user-friendly and intuitive trading platform, competitive spreads, and 24/5 customer service. They offer an impressive range of currency pairs, comprehensive trading packages, excellent trading conditions and fast execution (less than 1 second).

5. Best for Institutional Traders: Interactive Brokers

An American multinational brokerage firm operating the largest electronic trading platform in the U.S., Interactive Brokers is one of the most regulated financial companies in the world and is listed on the Nasdaq stock exchange under the ticker IBKR.

Interactive Brokers has been around for over forty years, and its strong reputation has made it a go-to broker for many traders in the United States.

Why We Love It: Interactive Brokers offers competitive spreads, low commissions and no hidden fees. The trading platform is easy to use and provides all the tools needed to make informed decisions when trading foreign currencies. The broker is also a popular choice for algorithmic trading, with their technology allowing traders to access over 100 different markets and trade across multiple asset classes.

How to Choose a US Forex Broker

Currency traders should consider several critical features before choosing their U.S. forex broker. Consider the following:

Account Features

These features are considered the baseline for the operational requirement you might have when starting to trade forex with a U.S. broker. The most important features include:

Initial Deposit

Initial deposits usually have a minimum threshold. If you want to dip your toes in the forex market and start small, pay attention to brokers with favorably low minimum deposits.

Leverage and Margin

Leverage, aka margin trading, is the ability to take outsized forex trades by borrowing funds from the broker. Some offshore brokers offer extraordinary leverage of up to 1:1000, but in the U.S., this number is limited to 1:50. You can trade by using as little as a 2% margin, which is adequate for most traders.

Commission and Spreads

Commissions and spreads fall into the fee category — the broker makes money from these charges. The commission is a volume-based fee, while the spread is the broker’s markup on buying or selling price.

Choosing between those often depends on your trading style. If you’re a short-term trader (scalper), you might prefer commissions since a higher spread might diminish your profitability.

Ability to Easily Deposit and Withdraw Funds

Withdrawing and depositing funds is all about convenience. The brokers usually offer bank transfers and credit cards, but If you have a particular payment service you prefer, make sure it is available.

Regulatory Compliance and Reputation

Regulatory compliance is the first step toward trustworthiness and building reputation. Yet, what takes years to build might take only days to destroy. The U.S. forex community is well-connected, and negative broker feedback spreads fast through forums and social media.

Currency Pair Offers

Currency pairs are the bread-and-butter product for any forex broker. Although virtually all brokers offer the few most popular pairs (majors), pay attention to their minor currency listings, especially the less-popular pairs known as exotics.

Trading Tools

Quality software is the cornerstone of any trading operation. While some traders use a naked chart and follow only price action, others might require the assistance of complex trading tools like multi-timeframe indicators or expert advisors (EAs). Make sure that the selected broker meets your requirements.

Trading Platforms

Forex brokers offer various trading platforms depending on the broker's capabilities as well as the region you live in. By providing access to trading platforms such as TradingView, MetaTrader 4(MT4) and MetaTrader 5 (MT5), a broker can offer the tools necessary for traders to make informed decisions and achieve successful trades.

These trading platforms provide all the features that are necessary for successful trading. For instance, they allow traders to view the real-time market prices and analyze the various trading strategies. This way, traders can clearly identify trends in the currency markets and make informed decisions regarding their trades.

Customer Service

Customer service is like an emergency kit. You might not realize it is there until it becomes the most important thing in the world. Quality customer service provides peace of mind, so keep an eye on its ratings.

What is the Commodity Futures Trading Commission (CFTC)?

The Commodity Futures Trading Commission (CFTC) is a key regulatory body in the United States mandated by Congress to oversee the nation's derivatives markets. Its primary objectives include safeguarding market integrity, enacting efficient regulations for market participants, and mitigating the risks of fraudulent activities.

The CFTC's jurisdiction extends across a diverse array of markets, encompassing commodities futures and options, foreign exchange, exchange-traded securities, and over-the-counter (OTC) securities.

In conjunction with the CFTC, market participants are typically required to hold regulatory standing with the National Futures Association (NFA), an industry-based self-regulatory organization (SRO) empowered by the CFTC to assist in enforcement efforts.

Forex brokers operating within the U.S., adherence to CFTC regulations is mandatory, resulting in a highly regulated environment that fosters trust among global traders. These agencies conduct due diligence, enforce capital requirements and adhere to other regulatory standards. Those standards include limitations to risk with 50:1 leverage for major currencies or 20:1 for minor and a steep capital requirement of $20 million.

Frequently Asked Questions