Best Research Tools
If you’re looking to trade forex, you’ll need to find the best broker to help you facilitate your trades. Continue reading through this list of the best forex brokers in the USA (United States of America).
7 Best Forex Broker in USA 2023
- Etoro: Best Overall
- IG Markets: Most Affordable
- Oanda: Best Research Tools
- Interactive Brokers: Best for Advanced Use
- FOREX.com: Best Mobile App
- TD Ameritrade: Best for US Forex Trading
- Nadex: Best Highly-Regulated Broker
What is a Forex Broker in USA?
A forex broker is a person or firm who will act as the intermediary between two parties for the sale of an asset–like foreign currencies.
Forex Trading Environment in the USA
Let’s take a look at some of the regulations that surround forex trading in the United States so you can better understand the market.
The Dodd-Frank Wall Street Reform and Consumer Protection Act
This act was passed as a response to the 2008 financial crisis in order to prevent a future occurrence. Overall, the act aims to support the financial system and make it safe for US people. Certain compliance measures of the act could limit the best US forex brokers and other top forex brokers.
Forex Broker’s Regulators
Forex brokers are regulated by a number of different regulatory bodies in the United States, which we’ll discuss here, including the NFA and Commodities Futures Trading Commission.
The Roles of Forex Broker’s Regulators
Regulators are aimed at making the forex market fair and safe for US consumers to take part in, and pass appropriate regulations accordingly to protect professional traders and hobbyists alike in the foreign exchange market. Each agency that regulates forex brokers is aiming for a fair and open forex industry.
Commodity Futures Trading Commission (CFTC)
The foreign exchange market is regulated by the Commodity Futures Trading Commission (CFTC). They aim to ensure the integrity of the firms engaging in the forex market.
National Futures Association (NFA)
The National Futures Association, the NFA, also regulates the forex market as one of the financial industry regulatory authority bodies. The NFA regulated forex brokers to safeguard the integrity of the derivatives markets.
- Great for sophisticated investors and retail traders
- Widely trusted
- Easy to use interface
- Over 70 currency pairs
- Great research and resources available
- Excellent tools and trading ideas
Top 7 Best Forex Broker in USA January 2023
eToro supports over 3,000 assets to be traded, including CFDs, forex and major currencies, and ETFs. They have a comprehensive and educational trading platform that’s even a good fit for beginners, though it’s not the most affordable option out there. Even still, it’s one of the best forex brokers out there and continues to be an industry leader.
IG is one of the most trusted forex brokers out there, and is even a public company and regulated. This offers good peace of mind to users and adds to the level of credibility that they have. They offer a great trading experience to users and are consistently seen as one of the best forex brokers available around the globe.
Many like Oanda for its friendly interface and high-quality platform with great technical indicators, API, and more. The account opening process is easy and quick, though they do have a limited product portfolio and customer service.
The platform is only for forex and CFD traders, with no other assets. Compared to others on this list, it doesn’t have any affiliation with a bank or is listed on the stock market, which could detract its credibility with some.
Interactive Brokers shines above the competition with its great fee structure, wide offerings, research and education provided, and modern platform. It has very advanced features, which could mean it’s a better fit for more sophisticated investors who are experienced in currency trading. Plus, compared to many other trading platforms, MetaTrader is not available as an alternative platform option.
FOREX.com is one of the great US forex brokers to help people get involved in the financial markets. As one of the best trading platforms.
Users can trade forex and CFDs around the globe, and access a large number of markets and proprietary trading platform options. It is not the most affordable of the forex trading platforms, though it is if you have a very high trading volume. Even still, their multi-asset offering is one of the largest draws to the platform for a forex trader.
Trading currencies on TD Ameritrade is a good option among the other US forex brokers. They have a great number of currency pairs available for forex traders to access, in addition to other great trading tools that some online brokers don’t have.
This online broker is a great option for beginner traders who want to get involved in the global markets. It is one of the forex brokers based in the US, so it’s heavily regulated and offers good protection to users. As a top forex broker, they have a totally transparent network and are known for their unique binary options products and direct market access account.
How to Choose The Best Broker in the USA?
If you want to compare forex brokers, continue reading below as we discuss trading costs and trading fees, features of trading accounts, and other aspects to help you decide where to trade forex.
Licensed and Regulated
First, you should see if the broker is regulated and licensed. This means it’s legitimate and is meeting the compliance standards of regulatory bodies.
You may also want to consider the cost of using the platform. Sometimes there will be discounts for high-volume traders or other types of beginner accounts, though if you want to access more currency pairs, retail investor accounts, or advanced trading tools, you may have to pay more.
The security of the platform is highly important since it has your money and other sensitive information that could be abused if it comes into the wrong hands.
Having access to a larger number of currency pairs is important when choosing the right forex broker. If you can only access one currency pair or a limited number, it may not be the right platform for forex traders.
Spread and Leverage
You’ll also want to see the type of maximum leverage and spread they provide to customers. Check out their statistics from past users to see if it’s attractive to you.
Transaction Execution Speed
Time is everything when trading forex, so you’ll want to see how quickly they execute trades. This could have implications on the profitability of your trade, so it’s highly important to keep this in mind aside from low trading fees.
Another thing to consider is the minimum deposit amount they require. This could limit newcomers, so shop around to find the right match for you.
Using a platform with demo accounts is valuable because it allows you to try out your trading strategies with virtual money before doing the real thing.
Many brokers will have a desktop platform for forex trading, but not all will have a mobile version. This can be very important to traders who want to access the London stock exchange from their phone or trade a currency pair on the go.
Lastly, take a look at the customer reviews and see what others have to say about forex brokers before choosing to use one. Just like you do when you trade stocks, you want to select a reliable broker that other customers have had success.
Choosing a great broker for forex trading is highly important because it contributes to the overall success and profitability of your strategy.
Frequently Asked Questions (FAQs)
There are many aspects that go into choosing a good broker, but try to do some research using the tips above like cost, reliability, speed, and licensing in order to choose the right one.
ABOUT THE AUTHOR
ABOUT THE REVIEWER
+ 5 sources
Bizreport Advisor adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.
- CFTC. Dodd-Frank Act | U.S. COMMODITY FUTURES TRADING COMMISSION. Cftc.gov. Published 2010. Accessed December 10, 2022. https://www.cftc.gov/LawRegulation/DoddFrankAct/index.htm
- NFA. www.nfa.futures.org. Accessed December 10, 2022. https://www.nfa.futures.org/
- Commodity Futures Trading Commission | CFTC. www.cftc.gov. Accessed December 10, 2022. https://www.cftc.gov/
- Forex Trading | TD Ameritrade. www.tdameritrade.com. Accessed December 10, 2022. https://www.tdameritrade.com/investment-products/forex-trading.html
- Home (US). IG. Accessed December 10, 2022. https://www.ig.com/us