If you’re a US resident and wish to start Forex trading, you should choose a broker that is regulated by CFTC and NFA to protect your capital. Select from the best of these brokers like Oanda, Forex.com (Gain Capital), TD Ameritrade, Interactive Brokers, and ATC brokers.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.
IG Is The Best Regulated Forex Broker For USA Traders
With over 45 years of experience in the foreign exchange market and over 195,000 retail client accounts worldwide, IG Group is one of the largest forex brokers operating on US soil. IG US LLC complies with the regulatory framework imposed by the US-based financial watchdogs:
Registered as a retail foreign exchange dealer (‘RFED’) and introducing broker (IB) with the CFTC
Approved Forex Dealer Member by the National Futures Association with the NFA ID 0509630
Note* Due to local-state regulatory restrictions, IG US can’t provide its financial services to US residents of Arizona or Ohio.
Trading with IG US comes with several advantages that place this leading provider among the best FX brokers. Our team of experts has examined the main trading features and compiled a list of benefits for trading Forex via IG US:
Competitive trading costs (up to 27% reduced spread on EUR/USD compared to other US FX brokers)
Over 100 technical indicators and allowing algorithmic trading
Free online courses, though the IG Academy
Binary options trading with the only US-based regulated exchange for binary options NADEX
Below, our devoted team of investment and business professionals outlined each component of currency trading via IG USA, including spreads, trading tools and the advantages of NADEX trading as an alternative investment vehicle.
IG USA Currency Pairs and Spreads
Among the US brokers we investigated, IG Group offers the largest number of currency pairs with minimum low spreads on EUR/USD and USD/JPY from only 0.8 pips. At IG, US clients can enjoy competitive spreads across over 80 currency pairs including:
Major currency pairs (EUR/USD, GBP/USD and USD/JPY)
At IG, US traders can trade FX with variable spreads, which can change during the course of a trading day. During illiquid trading hours and news announcements, the spreads can widen considerably. Our team of experts hand-checked for accuracy the forex trading fees that come with an IG live trading account and found that the average EUR/USD spread is 0.9 pips respectively and 1.4 pips average spread on the GBP/USD pair.
NADEX Binary Options
Regulated by the CFTC, NADEX (IG Group Holdings Plc.) is the only place where US residents can legally speculate on binary options. NADEX gives traders access to 10 FX pairs that are based on the spot exchange rates.
Technical Tools for the Forex Market
IG’s top technical tools for navigating the market and finding new trading opportunities include:
Streaming Reuters news integrated directly with the trading platform
Autochartist tool for unbiased and timely analysis
One-click trading directly from the charts
Price alerts to notify you on FX price movements
+100 indicators integrated with ProRealTime
Summary of IG US Findings
Spot Forex trading with IG Group is the ideal place for US-based traders wanting to speculate on a diverse range of currency pairs. Overall, among all FX brokers we’ve investigated, IG US offers the best average spreads on currency trading. Test your trading strategy in a risk-free environment by opening a demo account.
The overall rating is based on review by our experts
7.50
Spreads
8
/ 10
Leverage
3
/ 10
Trading Platform
10
/ 10
Risk Management
8
/ 10
Range of Markets
7
/ 10
Customer Service
9
/ 10
Forex.com Is The Best Broker In USA For Beginners
Forex.com is a subsidiary of Gain Capital Group, a leader in online trading listed on the New York Stock Exchange. Forex.com holds licenses from multiple jurisdictions across 4 continents, not just within the USA. This includes FCA, ASIC, FSA, and IIROC. Like all US regulated brokers, Forex.com is a trusted resource for traders operating there. Within the US, this Forex broker is registered as:
Futures Commission Merchant (FCM) and Retail Foreign Exchange Dealer (RFED) with the Commodity Futures Trading Commission (CFTC)
A member of the National Futures Association (NFA ID 0339826)
Beginner traders are welcome to start working with one of the oldest Forex brokers in the US due to excellent features such as:
Educational section (webinar, trading guides, glossary, and an interactive quiz)
30-day free demo account (on the downside, after your demo account expires, you can’t extend the availability)
A low minimum deposit of USD 50 (Forex.com recommends a minimum deposit of USD 2,500)
An award-winning global research team available to provide you access to market insights and trading ideas
Free live trading sessions
Dedicated customer support available via phone, live chat, email and SMS
Additionally, Forex.com has equipped its trading platforms with the right risk management tool to help beginner traders better cope with exchange losses. The Webtrader platform has an easy-to-use interface powered by TradingView.
Forex.com Learning Center
Forex.com learning centre is designed to equip all levels of US traders with the right knowledge to survive in the Forex market. The resources offered through the educational centre are available for:
Beginner traders
Intermediate traders
Advanced traders
Note* US FX traders unsure about their trading skill level can take up on the Forex.com Quiz and get resources that fit their level of knowledge.
Additionally, US residents can benefit from a dedicated market strategist with a one-on-one relationship. The market specialist can do live demonstrations of the financial services offered by Forex.com, teach traders how to use both technical and fundamental analysis, and provide ongoing support until the user is fully satisfied with the training.
Summary of Forex.com Findings
Overall, Forex.com offers financial products and services that cater primarily to beginners who are just starting out. Traders can access over 80 currency pairs with average spreads of 1.2 pips and $5 commissions on EUR/USD. You can open a live trading account with Forex.com in less than 5 minutes.
Note* Contracts for Difference (CFDs) are not available to US residents.
TD Ameritrade Has The Best US Based Customer Support
TD Ameritrade is a multi-asset broker that ranks in our top US FX brokers list due to their outstanding customer support. In addition, their Thinkorswim proprietary trading platform, 80 currency pairs along with cryptocurrency pairs, and competitive spreads cement their credibility in the industry. With over 40 years of providing trading services, TD Ameritrade is one of the largest broker-dealer firms in the US. It is regulated by tier-one agencies:
Securities and Exchange Commission (SEC) supervises the brokerage services provided by TD Ameritrade
Member of Financial Industry Regulatory Authority (FINRA)
Member of Securities Investor Protection Corporation (SIPC)
Commodity Futures Trading Commission (CFTC)
Registered with the National Futures Association (NFA ID: 0477394)
Investment Industry Regulatory Organization of Canada (IIROC)
Financial Conduct Authority (FCA) in the UK
Note* To put it into numbers, TD Ameritrade manages over 11 million trading accounts holding more than USD 1 trillion in assets and processes 500,000 orders on a daily basis.TD Ameritrade is part of the big four brokerage trading firms that include Charles Schwab, Fidelity Investments, and E*TRADE.
Direct Market Access (DMA) to Spot Forex Market
At TD Ameritrade, US traders have direct market access to a wide variety of financial instruments, including:
FX trades on 78 major and minor currency pairs
Stockbroker services with zero commissions on US exchange-listed stocks
ETF trading on over +2,300 ETFs, all commission-free
Futures trading with over 70 contracts (including Bitcoin futures)
+13,000 mutual funds
Options trading
Cryptocurrencies via ErisX (US residents can trade cryptocurrency spot contracts)
And many more
While CFDs are forbidden on US soil, the wide range of financial instruments offered by TD Ameritrade gives US traders the opportunity to speculate and invest directly in the underlying product. TD Ameritrade doesn’t charge data or platform fees. Only options trading comes with a small fee of USD 0.65 per contract. US-based traders can also expect trading forex with EUR/USD average spread of 1.065 pips (according to data compiled from Nov ’18-Nov ’19).
Comparing Spreads with other USA Forex Brokers
IG US Markets
Forex.com
Oanda
ATC Brokers
EUR/USD
0.9
1.2
1.4
0.3
USD/JPY
0.9
1.1
1.4
0.4
GBP/USD
1.4
1.8
2.0
0.5
Thinkorswim Trading Platform
TD Ameritrade offers a professional-grade terminal called Thinkorswim. US investors who hold a live trading account with TD Ameritrade can trade for free on this multi-asset platform. The award-winning Thinkorswim comes with the following advantageous features:
Access to over 400 technical indicators
Designed for algorithmic trading via thinkScript
Integrated newsfeeds from your favorite CNBC hosts and TD Ameritrade media affiliates
Market Monitor gives a visual layout of the entire market via Heatmaps and graphics
Thinkorswim Mobile Apps (in App Store and Google play)
Economic data helps you stay on top of the forex market
Custom alerts keep US traders updated with the latest price changes
Note* On the downside, TD Ameritrade doesn’t offer the popular MetaTrader 4 (MT4). Active FX traders that rely on the MT4 platform can opt for ATC Brokers.
Summary of TD Ameritrade Findings
Overall, TD Ameritrade is geared more towards professional traders. However, US retail traders can also benefit from the multi-asset Thinkorswim platform, which is rich in technical tools. TD Ameritrade offers a dedicated demo trading platform called paperMoney, where US-based traders can test any trading strategy using live FX quotes.
Oanda – No Minimum Deposit
Oanda is a leading global market maker that ranks in our top US FX brokers list for their no minimum deposit policy. Oanda offers two account types (Standard account and Premium account) that give US FX traders the following advantages:
Access to quotes on 70 currency pairs with no dealer intervention
4 trading platforms (Oanda Trade web-based, desktop, mobile apps, and MT4)
Powerful technical analysis tools powered by Autochartist
Integrated economic announcements with Oanda Trade platform
Third-party software (MotiveWave and Dow Jones FX Select)
Risk management orders
Transparent pricing models
Note* At Oanda, US residents can fund their live accounts via debit card (MasterCard, Visa or Discover), bank transfer, check (USD) and automated clearing house (ACH). On the other hand, withdrawing funds can only be done via debit card and bank wire transfer.
Our team of industry experts has assessed and hand-checked for accuracy these primary advantages that Oanda can bring to the table.
US Forex Brokers with Spread-only Pricing Model
Our review process took into consideration the spread cost built into the bid and ask prices to gauge the fees associated with making a trade. We have found that Oanda’s market maker model offers two types of FX pricing options:
Spread-only pricing (comprised of variable spreads)
Core pricing plus commission trading
Oanda spread-only model offers average spreads of 1.4 pips on EUR/USD and USD/JPY compared to 0.4 pips average spread on EUR/USD respectively and 0.3 pips on USD/JPY for the core pricing model. While the core pricing model offers reduced spreads, it has an additional commission of $5 per side for each 100,000 unit traded (or $10 round-turn commission).
See below, a full comparison of the variable spreads and core spreads on Oanda’s most popular currency pairs.
Oanda’s price engine technology connects to an exclusive liquidity pool formed by tier-1 global banks. At Oanda US, the price you see on the feed is the price at which your order gets filled. There are no re-quotes.
Summary of Oanda Findings
With over 23 years of experience in the foreign exchange market, Oanda is a well-respected brokerage among its peers. Oanda provides access to the FX market under the umbrella of the following regulatory authorities:
Registered as a Retail Foreign Exchange Dealer (RFED) with the US Commodity Futures Trading Commission (CFTC)
Registered as a Forex Dealer Member (FDM) of the National Futures Association (NFA ID 0325821)
Additional global tier-one forex regulatory bodies (FCA, ASIC, IIROC, MAS and FSA)
Oanda customers have a wide range of supported funding currencies at their disposal including USD, EUR, GBP, CAD, AUD, HKD, JPY, SGD and CHF.
ATC Brokers – MetaTrader 4 (MT4) Trading Platform
ATC Brokers operates as an agency model (ECN and STP models) and ranks in our list as the best MT4 broker in the US. ATC Brokers provides financial services in the form of Forex trading under the supervision of both CFTC and NFA. The regulatory framework protects US clients from bad trading practices and offers the safety of funds.
ATC Brokers blends the benefits that come with ECN and STP brokers into a hybrid model. The enhanced trading experienced by the non-dealing desk execution model gives US traders the following advantages:
Fair FX market environment with no conflict of interest
Access to FX trading and metal trading on 38 currency pairs and 2 metals (Gold and Silver)
Narrowed spreads on the major currency pairs
Upgraded MetaTrader 4 (MT4) platform
No restrictions for trading (scalping is allowed)
STP order aggregation buy and sell prices derived from multiple liquidity providers
Note* While ATC Brokers offers a core pricing model, in addition to the spread, it also charges a substantial commission of $10 per every 100,000 units traded.
The trading software solution built in-house by the ATC Brokers experts has propelled this FX trading provider on top of our best MT4 brokers in the USA. Below, our industry experts have further outlined the innovative technological solution offered by ATC Brokers.
Best MetaTrader 4 Platform for US Traders
In addition to offering the popular MT4 platform (desktop and mobile), ATC Brokers have combined the advantages of this technology with a new range of trading tools and features and introduced the MT Pro trading platform. This optimized version of the MT4 offers US residents the following advantages:
Depth of Market (DOM) with multiple layers of market depth
One-click execution – trading directly from the FX price ladder
Direct button to close and reverse all open trades
Customizable trading orders
PnL equity curve
Sophisticated tools to analyze user performance (Winners vs. Losses, Time Analysis, Etc.)
Summary of ATC Brokers Findings
Overall, ATC Brokers offer superior trading conditions through the MT Pro software technology. Trading can be conducted via both platforms (MT4 and MT Pro) at your discretion, with raw spreads as low as 0.3 pips on EUR/USD respectively and 0.4 pips on USD/JPY. US retail traders can request their demo account login details (30 days availability) after submitting an online form request. Take note, the live trading account requires a minimum deposit of USD 3,000.
The USA has two key regulatory bodies for forex brokers:
Commodity Futures Trading Commission (CFTC)
National Futures Association (NFA)
Only 5 USA forex brokers are regulated by both with our 2022 review finding IG is the best based on forex trading platform, spreads and customer support. They are also the largest foreign exchange broker globally. You can view the full IG review.
What Is The Most Popular Forex Trading Platform?
Both globally and in the US there are three popular forex platforms:
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
MetaTrader 4 is the most popular forex platform for currency trading while MetaTrader 5 is the most popular for CFD trading but not offered by any USA broker. View the full list of forex trading platforms.
US Regulation for Forex Brokers
Our team at Compare Forex Brokers believes regulation is one of the most important factors when assessing US FX brokers. Forex regulation in the United States is unanimously understood to be the most stringent regulatory framework in the world.
The strict rules that govern the financial services offered by the US Forex brokers give US traders the following advantages:
A level playing field in the FX market for all market participants
Protects traders from irregularities and combat scam activities
Transparency – regulated brokers need to disclose financial statements and submit audit reports
Funds security – US brokers are required to keep client funds in segregated accounts
Anti-money laundering – gives US clients the peace of mind their funds won’t be used in illegal activities
Below, our team of investment professionals has outlined the major regulatory entities in the USA that supervise the financial markets, including Forex brokers.
USA Forex Regulatory Agencies
In the United States, there are two financial watchdogs responsible for providing the regulatory framework for US-based Forex brokers:
Commodity Futures Trading Commission (CFTC)
National Futures Association (NFA)
All US and overseas Forex brokers that intend to service US residents must register with the CFTC and NFA at the same time. Both regulatory bodies work together to protect US traders. Below our experts will outline a brief history of the world’s most trustworthy regulatory authorities in the foreign exchange market.
CFTC and NFA History
The NFA is a self-regulatory organization (SRO) founded in 1977 as a CFTC committee but became an independent registered futures association in 1981. The National Futures Association began its regulatory operations in 1982.
These are some strict restrictions imposed by the NFA on the US regulated brokers:
Limited maximum leverage of 50:1 on major currency pairs
Limited maximum leverage of 20:1 on minor currency pairs
FIFO rule (first-in, first-out) – this forex rule forces US retail traders to close the earliest trades first, in case multiple trades are open on the same currency pair
No hedging allowed
On the other hand, the Commodity Futures Trading Commission (CFTC) was established in 1974 by the US Congress. The CFTC is the ultimate regulatory body in the USA governing the Forex market. There are two major bills that provide the legal framework that constitute the rules regarding FX trading:
The Commodities Exchange Act
Dodd-Frank Act Wall Street Reform passed into law by President Obama
Below, our team of industry experts ranked the best CFTC and NFA regulated brokers in the USA. This evaluation accounts for their modus operandi, trading platforms, range of currency pairs, spreads, total costs of trading, customer support, and much more.
About The Forex Brokers USA Review
Our experts at Compare Forex Brokers have hand-check for accuracy all the data provided through the Forex brokers USA Review. We used our proprietary star scoring system to rank US FX brokers. Our methodology took into consideration factors such as:
Regulation and licensing
Price competitiveness (spreads)
Software technology (trading platforms)
Accessibility (minimum deposit and available funding methods)
Range of currency pairs
Beginner friendly and easy-to-use platforms
Customer support service
The heavily regulated environment in the USA due to the CFTC rules and strict requirements has narrowed the brokerage options in the US. However, individual US traders have the option to also trade through offshore brokers that are not subject to the CFTC rules. The number of offshore Forex brokers accepting Americans is also very limited. It also comes with several risks due to the lack of regulation.
Risk Warning: Forex trading and trading on margin come with a high level of risk. Trading high-leveraged products may not be suitable for all investors, as you might lose all your money. Make sure you understand how forex trading works before putting your funds at risk.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.
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Gregg D
5 months ago
I noticed that other sites list a lot more forex brokers for US traders compared to this list. Why is that?
If you are in the USA, then you must choose a forex broker that is regulated by the Commodity Futures Trading Commission (CFTC) or the National Futures Association (NFA). Residents of the USA cannot legally trade with a broker that does not have this regulation. Most likely these other websites are including brokers that are not regulated by the CFTC or NFA, so cannot legally offer their services to US residents.
Kelsey
5 months ago
Can you trade Contracts for difference in the USA?
If you are forex trading with a broker regulated by NFA or NFTC (the main regulators in the USA) then you can trade with a maximum leverage of 1:50 when trading spot forex
Ask an Expert
I noticed that other sites list a lot more forex brokers for US traders compared to this list. Why is that?
If you are in the USA, then you must choose a forex broker that is regulated by the Commodity Futures Trading Commission (CFTC) or the National Futures Association (NFA). Residents of the USA cannot legally trade with a broker that does not have this regulation. Most likely these other websites are including brokers that are not regulated by the CFTC or NFA, so cannot legally offer their services to US residents.
Can you trade Contracts for difference in the USA?
Hi Kelsey – The regulators in the USA- the NFA and NFTC forbid the trading of CFDs. You can trade using spot prices however
What is the maximum leverage for trading in the USA
If you are forex trading with a broker regulated by NFA or NFTC (the main regulators in the USA) then you can trade with a maximum leverage of 1:50 when trading spot forex