Compare Forex Brokers USA

OANDA Is The Best US Forex Broker

A global forex broker with offices in Europe, the US, Asia and Australia, OANDA offers over 25 years of experience as a retail brokerage to customers. From competitive spreads to an internationally-recognized trading platform to an impressive selection of MetaTrader 4 integrations and add-ons, this top forex broker has something for every trader.

Key Strengths:

• Low spreads and competitive trading costs
• Wide variety of assets to trade
• 24/7 customer support by traders, for traders

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OANDA Trading Accounts

High-volume traders and those seeking to maximize return on investment will find OANDA’s fee structure highly appealing. Spread Only Pricing account holders pay no commission on round-turn trades per 100K standard lot, while all account types benefit from low forex fees on long positions.

Unlike other US forex brokers we reviewed, OANDA acts as a market maker for both trading account types available in the US. The Spread Only Pricing account operates much like a standard account, with variable spreads starting at 0.6 pips and no commission on round turn trades. The Core Pricing account offers tighter spreads – 0.1 pips – but charges a USD$10 commission.

OANDA also offers American account holders an attractive rebate program to reward high-volume traders with cash rebates and commission reductions ranging from USD 5.00 and USD 15.00 per million dollars traded.

Minimum Deposit And Funding Methods

Neither the Spread Only Pricing nor the Core Pricing accounts require a minimum balance to open. Instead, traders are charged a monthly fee of up to ten units of their account currency for any periods of inactivity longer than twelve months.

OANDA Trading Platforms

With a full suite of available trading platforms, including proprietary web, mobile and tablet options powered by TradingView, OANDA has all the tools a trader might want. From performance analytics to personalized to advanced charting options, OANDA has tools to support any trading strategy.

OANDA also allows MetaTrader 4 users to access additional tools, including advanced indicators, mini charts, alert trading, EAs, alert trading and one-cancels-the-other orders, keyboard trading and tick trading via MetaTrader Premium. For automated trading, OANDA offers US traders a private API, OANDA v20 REST, which allows for automated trades via the OANDA Trade platforms.

OANDA Trading Products

Granted, OANDA does limit American forex traders to currency markets. The range of available currency pairs, however, more than matches up to comparable US online trading brokers.

OANDA’s forex offering includes over 68 currency pairs. Among the major currency pairs available: EUR, GBP, USD, JPY, NZD, AUD and CHF.

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Online Forex Trading in the US: Legal, But Limited

Before moving further, it’s important to understand how the US differs from other jurisdictions when it comes to trading forex online. Forex trading in the US is legal, however, traders have a more limited range of options when it comes to choosing a broker.

Why? Because regulators in the United States have specific capital requirements for forex brokers.

The National Futures Association (NFA) requires ‘Futures Commission Merchants’, including forex brokers, to maintain a minimum of USD$20 million in adjusted net capital in order to act as a counterparty to any forex trade. Compare this to the EU$730 thousand needed to operate as a forex broker in Cyprus – and, by extension, the rest of the EU – and you can see why smaller, leaner brokers might find the American regulatory environment a bit chilly.

The Commodities Futures Trading Commission (CFTC), another American regulator, does not permit trading on Contracts for Difference (CFDs), only spot trading or direct foreign exchange trading. The difference? In a CFD, the trader has no exposure to the underlying asset – traders bet on the movement of a currency pair. In spot forex trading, however, the trader buys and sells the actual currency.

Comparing Forex Brokers in the USA: Key Considerations

Choosing a forex broker can feel like a daunting process, particularly for beginners not entirely sure about the differences between account types or trading platforms. Even more experienced traders may hesitate before committing to a US forex broker, however, as accounts may appear to lack familiar features or products commonly available overseas. That said, US traders do have access to the same range of accounts as in other countries. CFTC and NFA rules and regulations permit US forex brokers to act as market makers (standard accounts) and simply trade processors, as in a no dealing desk electronic communication network (ECN) or straight-through processing (STP) system.

While reading through our reviews of forex brokers in the US, it may help to keep in mind the following questions:

• What’s my experience level? Beginner traders may fare best with the security of a standard account featuring solid charting tools. More experienced players, on the other hand, might prefer the enhanced efficiency and transparency of a no-dealing desk account with tools tailored for specific trading strategies.
• What’s my trading strategy? If you’re interested in scalping or social trading, it’s important to select a broker that not only permits, but supports, your strategy with the proper tools and trading platforms.
• What’s my budget? Fees and commissions can vary from broker to broker and account to account. Before committing, make sure you understand the charges associated with trading on a given platform with a particular broker.
• What platforms do I want? In addition to their own, proprietary trading platforms, many US forex brokers offer clients the option to ‘upgrade’ via third-party integrations to MetaTrader 4 and MetaTrader 5. Not all brokers offer access to all trading platforms, however, and some may limit particular platforms and tools to particular account types.
• What’s my risk tolerance? If you’re the type of trader who needs guaranteed stop-loss orders to sleep well at night, you’ll need to ensure that your preferred broker offers them. Those accustomed to trading with the European arms of popular brokers would likewise do well to confirm that the American subsidiary offers similar features.
• What extras do I want and need? Maybe you’re still learning the ins and outs of forex trading and want access to advanced educational materials. Or perhaps you travel frequently and rely on 24/7 customer support to keep things running smoothly.

One thing we recommend for all US forex traders, regardless of experience level, trading strategy, preferred product or even location? Trading only with a fully licensed and regulated broker authorized to engage in spot trading of forex by the Commodities Futures Trading Commission (CFTC) and the NFA. Only by opening an account with an authorized broker, such as those reviewed here, can you be confident that you’re trading with a transparent dealer on fair terms.

Leading US Forex Brokers

While it’s true that only a select group of forex brokers allow US-based traders to open accounts, those that do number among some of the largest and most well-known worldwide.

For those that open accounts with the US subsidiary of a reputable international forex broker, we advise first taking a close look at leverage when comparing accounts. Some US forex brokers extend leverage up to 50:1, which provides a slight edge when it comes to flexibility.
But what about the other factors discussed above? Below, we compare forex brokers in the US across a range of metrics to help you decide which broker and account type work best for you and your needs.

US Forex Broker Licenses and Regulations

Understanding why many of the better-known and globally popular forex brokers don’t offer accounts to American forex traders requires an understanding of the US’ unique regulatory framework. As explained above, obtaining the necessary licenses and approvals from the CFTC and the NFA requires a broker to show a minimum capitalization of USD$20 million. That’s a lot to pay for one license that, unlike an EU license, gives the broker access to a single market.

The Australian Securities and Investments Commission (ASIC), by contrast, requires only AUD$1 million in capital for forex brokers, and the International Financial Services Commission (IFSC) in Belize only USD$500 thousand. European regulators, such as the Cyprus Securities and Exchange Commission (CySEC) may have higher minimum requirements but, due to EU-wide regulations, a license to operate in one jurisdiction allows a broker to operate anywhere within the bloc.

In short, if you’re currently an IC Markets, FP Markets, Pepperstone or FxPro account holder abroad and relocating to the US, you may find your available brokerage options somewhat more limited. Cause for short-term frustration? Perhaps. But the peace of mind that comes with knowing that your counterparty in a market-maker account complies with all applicable rules and regulations affords valuable peace of mind.

Comparing Forex Brokers in the US: Conclusions

While high minimum capital requirements and an ambiguous regulatory framework may have limited the available options for trading forex in the US, those who wish to do so will find an attractive array of US brokers from which to choose.