If you’re a US resident and wish to start Forex trading, you should choose a broker that is regulated by CFTC, NFA or FINRA in order to protect your investments. Select from the best of these brokers like Oanda, Forex.com (Gain Capital), TD Ameritrade, Interactive Brokers, and ATC brokers.
Updated: 23/01/2021
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These are the best US FX brokers governed by NFA, CFTC or FINRA
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:
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:
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.
Among the US brokers we investigated, IG Group offers the largest number of currency pairs with minimum 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:
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.
Regulated by the CFTC, NADEX (IG Group Holdings Plc.) is the only place where the US residents can legally speculate on binary options. NADEX gives traders access to 10 FX pairs that are based on the spot exchange rates.
IG’s top technical tools for navigating the market and finding new trading opportunities include:
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.
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The overall rating is based on review by our experts
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:
Beginner traders are welcome to start working with one of the oldest Forex brokers in the US due to excellent features such as:
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 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:
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.
Overall, Forex.com offers financial products and services that cater primarily to beginners who are just starting out. Traders can access to 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 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:
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.
At TD Ameritrade, US traders have direct market access to a wide variety of financial instruments, including:
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 Oct ’18-April ’19).
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:
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.
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 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:
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.
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:
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.
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:
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 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:
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.
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:
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.
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:
Below, our team of investment professionals has outlined the major regulatory entities in the USA that supervise the financial markets, including Forex brokers.
In the United States, there are two financial watchdogs responsible for providing the regulatory framework for US-based Forex brokers:
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.
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.
Note* The NFA website offers US retail traders the chance to verify the status of US forex brokers via an online portal called Background Affiliation Status Information Center (BASIC).
These are some strict restrictions imposed by the NFA on the US regulated brokers:
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:
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.
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:
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 comes 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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