Best Forex Brokers for US in 2024

Last updated Mar 2, 2024
Nikolay Zavarov - Author
Nikolay Zavarov
Author
Andrey Bondarenko - Editor
Andrey Bondarenko
Editor

We've researched and compiled a list of the best US Forex brokers to offer you access to trustworthy trading accounts right now. Read on to discover which Forex brokers have made our list and why they are considered the best in the U.S. for 2024!

Top 5 Best US Forex Brokers

Логотип Oanda
1
Foundation Year
2001
Minimum Deposit
$ 1
4.3/5
Register71-76.6% of retail investors lose money when trading CFDs with this brokerOanda review
Логотип FOREX.com
2
Foundation Year
2000
Minimum Deposit
$ 100
4.1/5
Register68-81% of retail investors lose money when trading CFDs with this brokerFOREX.com review
Логотип IG
3
Foundation Year
1973
Minimum Deposit
$ 1
4.1/5
Register68-72% of retail investors lose money when trading CFDs with this brokerIG review
Логотип Trading.com
4
Foundation Year
2017
Minimum Deposit
$ 5
4.1/5
RegisterTrading CFDs carries high risks. You may lose all invested fundsTrading.com review
Логотип eToro
5
Foundation Year
2006
Minimum Deposit
$ 200
3.8/5
RegisterTrading CFDs carries high risks. You may lose all invested fundseToro review

We review the top US Forex brokers, comparing their services, trading fees, platforms, regulatory compliance, Forex pairs, and customer support. This comparative analysis aims to help traders find the best regulated US Forex broker suited to their needs.

1. Oanda

Логотип Oanda
1
4.3/5
Register71-76.6% of retail investors lose money when trading CFDs with this broker
Countries of registration:
Trading Assets
ForexIndicesCryptocurrencyStocksPrecious MetalsEnergy CarriersAgricultural CommoditiesBonds
Trading Platforms
MetaTrader 5MetaTrader 4TradingViewfxTrade
Deposit/withdrawal:
Логотип Skrill
Логотип Neteller
Логотип Swift
Логотип Visa
Логотип Mastercard
compare Oanda trading accounts

Oanda is suitable for beginners and experienced traders, thanks to quality analytics and various educational materials.

Advantages of Oanda

  • Strict Regulation. Oanda is regulated by leading financial authorities worldwide, ensuring high security.
  • Tight Spreads. Oanda offers competitive and transparent spreads.
  • Diverse Markets and Products. The broker provides a wide selection of assets, from Forex and CFDs to indices and commodities.
  • Advanced Trading Platforms. Oanda supports MetaTrader 4 and 5 and its proprietary platform, fxTrade.
  • Quality Analytics. Automatic pattern recognition, advanced tools for MetaTrader, a currency converter, and other resources are provided.
  • Extensive Learning Section. Oanda offers rich educational materials and resources, including webinars, videos, and articles.

Disadvantages of Oanda

  • Limited Account Types. Oanda offers only one standard type of account, which may not be suitable for traders with different needs.
  • Inactivity Fee. An inactivity fee may be charged if the account is not used for an extended period.
  • High Swaps. Oanda has relatively high swap rates, which could reduce the profitability of long-term trades.

2. FOREX.com

Логотип FOREX.com
2
4.1/5
Register68-81% of retail investors lose money when trading CFDs with this broker
Countries of registration:
Trading Assets
ForexStocksETFIndicesCryptocurrencyBondsPrecious MetalsEnergy CarriersAgricultural Commodities
Trading Platforms
FOREX.comNinja TraderMetaTrader 4TradingView
Deposit/withdrawal:
Логотип Neteller
Логотип Skrill
Логотип Bank Transfer
Логотип Credit and Debit Cards
compare FOREX.com trading accounts

FOREX.com is suitable for traders of all levels due to its reliability, wide range of assets, and excellent customer service.

Advantages of FOREX.com

  • Reliability and Regulation. FOREX.com is a broker with many years of history and a global reputation, regulated by several serious organizations, including the CFTC, NFA, and FCA.
  • Account Funding Methods. FOREX.com offers a variety of account funding methods, including bank transfers, cards, and electronic wallets.
  • Markets and Products. A wide variety of available markets and products, including stocks, indices, commodities, and cryptocurrencies.
  • Analytics. Advanced analytical tools and daily updates from the company's professionals.
  • Education. Comprehensive educational materials for all levels of traders, from beginners to advanced.

Disadvantages of FOREX.com

  • Lack of Specialized Accounts. All clients work with basic account types; specialized accounts are not offered.
  • High Transaction Commission on DMA Account. The cost of trading on DMA accounts may be higher than competitors.
  • Low Maximum Leverage. FOREX.com offers lower maximum leverage than other brokers, which may limit trading opportunities.

3. IG

Логотип IG
3
4.1/5
Register68-72% of retail investors lose money when trading CFDs with this broker
Trading Assets
ForexStocksIndicesETFCryptocurrencyBondsPrecious MetalsEnergy CarriersAgricultural Commodities
Trading Platforms
MetaTrader 4IG Trading PlatformL2 Dealer
Deposit/withdrawal:
Логотип PayPal
Логотип Bank Transfer
Логотип Credit and Debit Cards
compare IG trading accounts

Broker IG.com is suitable for traders of all levels, offering reliability, convenience, a wide selection of instruments, and good customer support.

Advantages of IG

  • Regulation. IG is licensed by highly trusted regulators, including the FCA in the UK and ASIC in Australia, providing a high degree of client protection.
  • Tight spreads. IG offers tight spreads across various instruments, making trading more cost-effective.
  • Markets and products. The broker offers trading on various markets, including stocks, currencies, indices, commodities, and more.
  • Trading platforms. IG provides quality and intuitive trading platforms available on various devices.
  • Analytics. IG offers an extensive set of analytical tools and provides a large amount of its content to assist in making trading decisions.
  • Education. The broker offers extensive educational resources suitable for beginners and more experienced traders.

Disadvantages of IG

  • Limited choice of trading accounts. The variety of accounts at IG is quite limited, which may not meet the needs of all types of traders.
  • High commission on DMA account trades. The broker charges a relatively high commission for trading on a DMA account.
  • Inactivity fee. IG charges an inactivity fee, which can increase the overall costs for traders not actively trading.
  • Limited choice of payment methods. IG offers a relatively small selection of deposit and withdrawal methods, which may be inconvenient for some users.

4. Trading.com

Логотип Trading.com
4
4.1/5
RegisterTrading CFDs carries high risks. You may lose all invested funds
Countries of registration:
Regulators:
Trading Assets
StocksIndicesCommoditiesForex
Trading Platforms
MetaTrader 5
Deposit/withdrawal:
Логотип Neteller
Логотип Skrill
Логотип Bank Transfer
Логотип Credit and Debit Cards
compare Trading.com trading accounts

Broker Trading.com suits traders looking for low commissions and a convenient platform. Beginner traders may lack analytics and educational materials.

Advantages of Trading.com

  • Low commissions. No trading commissions and low spreads make trading more accessible.
  • Multiple deposit and withdrawal methods. The broker does not charge for deposit and withdrawal, offering various options.
  • Use of MetaTrader 5. It is one of the most popular trading terminals in the world, with extensive functionality.
  • Islamic account. The possibility of opening an account that complies with Sharia principles.

Disadvantages of Trading.com

  • Limited educational materials. Lack of extensive educational materials for beginners.
  • Sparse analytics. A limited set of analytical tools, especially for European clients.
  • No cryptocurrencies. There is an absence of cryptocurrencies and small leverage in some cases.

5. eToro

Логотип eToro
5
3.8/5
RegisterTrading CFDs carries high risks. You may lose all invested funds
Countries of registration:
Trading Assets
ForexIndicesCryptocurrencyETFStocksCommodities
Trading Platforms
eToro
Deposit/withdrawal:
Логотип PayPal
Логотип Neteller
Логотип Skrill
Логотип Klarna
Логотип Rapid Transfer
Логотип Sofort
Логотип Swift
Логотип Visa
Логотип Mastercard
Логотип Trustly
Логотип POLi
compare eToro trading accounts

eToro may be suitable for beginners looking for a simple platform and interested in copying the trades of successful traders.

Advantages of eToro

  • A social network for traders.
  • Good selection of trading instruments.
  • Fractional shares purchasing.
  • Narrow spreads.

Disadvantages of eToro

  • Only one trading account is available.
  • eToro has its own trading platform, but there is no alternative to it.
  • Poor customer support performance.
  • Delays and hidden fees during fund withdrawal.

How the List of Best Forex Brokers in the US Was Compiled

The selection of the best Forex brokers in the United States was based on a set of considered criteria:

  1. The ranking of brokers was conducted considering our Forex broker comparison.

  2. Best brokers received high scores according to our established methodology.

  3. All the listed companies provide services that accept US clients.

These standards ensure that the brokers included in our list meet stringent reliability criteria and offer the trading conditions necessary for safe and effective Forex market operations.

Forex Trading in the US

Forex trading is legal in the United States. Still, it significantly differs from trading in other parts of the world, mainly because Forex brokerage services in the U.S. must adhere to stricter financial regulations.

In Europe, the regulatory environment for companies is relatively straightforward and clear. A broker applies for a license from European regulatory bodies, allowing it to accept users from across the EU. Essentially, a broker regulated by the Financial Conduct Authority (FCA) in the United Kingdom can accept Forex traders from Ireland, Germany, Bulgaria, Italy, and all other EU member countries.

In contrast, the Forex in the USA is not as flexible. Brokers licensed in the EU cannot accept clients from the U.S. This is primarily because stricter rules protect American citizens. Forex brokers registered with the relevant U.S. authority (NFA) must adhere to more rigorous regulations and face more severe penalties than anywhere else.

The Dodd-Frank Act and Consumer Protection

Why does U.S. legislation impose stricter sanctions on its residents? The current state of the U.S. Forex market is a response to the severe impacts of the global financial crisis of 2007-2010.

After many investors suffered significant losses at the hands of brokers and financial institutions, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010. This legislation reformed the previously inadequate regulatory system, compelling brokers to adhere to higher standards by introducing greater transparency and accountability into the financial system.

Following its enactment, many brokers and retail US traders panicked and left the country, leaving a vastly different Forex environment behind. Today, fewer Forex brokers operate in the U.S. than elsewhere, primarily due to the Dodd-Frank Act.

Notably, in 2018, the U.S. Congress and President Trump passed a bill that rolled back significant portions of the Dodd-Frank Act, arguing that it harmed small and medium-sized banks not responsible for the financial crisis. It's probably no coincidence that many Forex brokers returned to the U.S. in the same year.

The Role of the CFTC and NFA

So, who ensures compliance with the Dodd-Frank Act?

Two institutions enforce this act and regulate the American Forex market: the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).

To operate in the U.S., Forex brokers must first register with the CFTC. This requirement applies to Forex brokers and those not registered in the U.S. but who wish to serve American clients.

The mission of the CFTC is to maintain a transparent and fair financial market by curbing fraudulent market activities, preventing any form of market manipulation, and stopping financial abuses. Any companies violating these rules will face direct actions to avoid any harm or further damage to clients, including substantial fines and sanctions.

The NFA, a division of the CFTC, implements regulatory programs to protect the integrity of the Forex market, and it is where American brokers must register. The NFA works to regulate individuals and companies participating in the U.S. financial industry and maintains honest and ethical business practices.

Both agencies work together to manage the conduct of member firms following their rules. The NFA and CFTC also act as judge and jury in any arising disputes with consumers.

Forex Regulations in the USA

Regulated Forex brokers accepting US residents must adhere to certain limitations and meet requirements. Here are the most important ones:

1. Capital Requirement

The capital requirement for American companies is one of the most significant differences between the USA and other countries. According to NFA requirements, U.S.-registered brokers must have a minimum capital of no less than $20 million to maintain client positions without declaring bankruptcy. Additionally, any broker whose liabilities exceed $10 million must have 5% of this amount. The requirement is significantly lower in Cyprus, home to many Forex dealers – from approximately $42,000 to $1 million. After Cyprus joined the European Union, it became an attractive option for Forex brokers, allowing them to trade under less stringent regulations than most other EU countries, let alone the USA.

2. Leverage Restrictions

The USA has fewer Forex dealers with high leverage compared to other jurisdictions. Users often seek companies that offer high leverage to clients, as it can potentially increase their winnings. This is one of the main reasons for the success of the Forex industry – it doesn't require traders to have substantial capital at the outset. However, higher leverage can also lead to more significant losses. For this reason, American brokers, like those in the UK, are limited by maximum leverage. In the USA, Forex brokers are restricted to a maximum leverage of 50:1 for most major currencies. By contrast, Australian brokers have no such leverage restrictions. As a result, you won't find US-based Forex brokers with high leverage.

3. Hedging is Prohibited

In currency trading, traders can use specific strategies for more effective outcomes. Hedging is one of them, and it helps minimize potential losses. For example, if your sell order isn't performing as expected, you might place a buy order. Why is hedging not allowed in the USA? Regardless of the protection it may offer, traders in the US cannot hedge trades on the global Forex market as regulators believe it could be disadvantageous to traders due to high commissions and trading costs.

4. Registration with the CFTC

Forex brokers in the USA must be registered with the CFTC and regulated by the National Futures Association (NFA). Upon registration, brokers receive a unique registration number. All registration numbers are displayed in the CFTC’s online database, which is publicly accessible. Users considering registering with a broker can first check if the broker is regulated by the Commodity Futures Trading Commission (CFTC).

5. Ensuring Fund Security

Last, the NFA regulates the security of traders' funds, ensuring they do not lose their money. This is achieved in several ways. Firstly, the NFA monitors and ensures that all registered brokers keep their funds in segregated accounts, separate from those managed by the broker. American companies cannot run off with client funds if something goes wrong. Forex brokers usually clearly state this on their website, and it's something to pay attention to when researching companies. But look no further, as we've done the heavy lifting for you and compiled a list of the USA's most reputable and best Forex brokers for beginners.

How Forex Regulation in the USA Differs from Other Countries

Before registering with a Forex broker, it’s crucial to check its status, affiliation, and location. Websites often boast low brokerage commissions and high leverage (which implies increased risk). However, most sites are operated from outside the United States and may not be registered with a responsible authority in their country of operation.

In many cases, even those sites with local permission might not be registered with the relevant U.S. authority. Separate government bodies regulate different countries, each setting its own rules and standards regarding offered leverage, required deposits, reporting requirements, and investor protection, depending on the broker's location.

How to Choose the Best Forex Broker US

Selecting a trusted broker is critical for successful online trading in the international currency market. To identify a top Forex broker in the United States, it's essential to carefully evaluate a range of critical parameters that align with your personal requirements and trading style. It’s crucial that the chosen broker meets your expectations and lacks drawbacks that could hinder your trading. When choosing a Forex broker, consider the following aspects:

  1. Broker Regulation. Give preference to brokers licensed by authoritative regulatory bodies such as the CFTC, NFA, or SEC in the USA, ensuring the broker's reliability and transparency.

  2. Account Types. The choice of account type should match your experience and the size of your trading capital. Assess whether the broker offers accounts that are suitable for you.

  3. Trading Platforms. The convenience and functionality of trading platforms are significant, so choose a broker with the most comfortable platforms for your trading strategies.

  4. Trading Conditions. It is essential to evaluate conditions like spreads, commissions, minimum deposits, and lot sizes to ensure they meet your requirements.

  5. Customer Support. Check the quality and responsiveness of customer service and the availability of communication methods that are convenient for you.

Considering all these criteria, you can make an informed choice of a Forex broker. We recommend starting with a demo account to practically test the broker's services in the context of an American client.

FAQ

Yes, Forex trading is legal in the United States. However, it is subject to strict regulations enforced by bodies such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Brokers offering Forex trading services in the USA must be registered with these regulatory agencies to operate legally.

How to Start Trading Forex?

To start trading Forex, you should educate yourself about the Forex market and trading strategies. Then, choose a reliable Forex broker, preferably one regulated in your country. Open a trading account, deposit funds, and start trading using a platform. It's recommended to begin with a demo account to practice without financial risks.

Can You Profit from Forex Trading?

Yes, it is possible to profit from Forex trading. However, it requires a good understanding of the Forex market, effective trading strategies, risk management, and a disciplined approach. Remember that Forex trading involves significant risk, and it's possible to incur losses.

Why Some Forex Brokers Don't Accept US Clients?

Some Forex brokers do not accept US clients due to the stringent regulations and licensing requirements imposed by U.S. authorities. Compliance with these regulations can be challenging and costly for brokers, leading some to opt out of the U.S. market.

Forex Trading Taxation in the USA

In the USA, profits from Forex trading are subject to taxation. Depending on their trading activities, traders must report their earnings as foreign income or capital gains. It's advisable to consult with a tax professional to understand specific obligations and ensure compliance with U.S. tax laws.

Minimum Capital Required to Start Forex Trading

The minimum capital required to start Forex trading varies by broker. Some brokers allow you to start trading with as little as $50 to $100. However, it's important to consider that starting with a small amount may limit your ability to manage risks effectively.

Is Forex Trading Suitable for Beginners?

Forex trading can be suitable for beginners, but it requires a commitment to learning and understanding the complexities of the Forex market. Beginners should start by educating themselves, practicing with demo accounts, and starting small to manage risk effectively.

Is Copy Trading Available in the US?

Yes, copy trading is available in the US but is subject to regulatory restrictions. Copy trading platforms and brokers offering such services in the USA must comply with regulations set by authorities like the CFTC and NFA. As a trader, ensure you choose a regulated and reputable platform for copy trading.

Can US Citizens Trade Forex Internationally?

US citizens can trade Forex internationally, but they must ensure that the foreign brokers are registered with the CFTC or NFA if they offer services in the USA. Due to stringent US regulations, many international brokers do not accept US clients. Therefore, US traders need to verify the regulatory compliance of any international broker they consider.

Conclusion

Choosing the right broker is crucial in trading spot Forex, as in any other aspect of life or business. The best US brokers are those that offer a variety of features and services, appealing to a broad range of traders.

If you are new to Forex market trading, conduct thorough research and compare different dealers before making a decision. Once you've chosen a regulated broker, utilize all their resources to learn as much as possible about trading Forex.

Nikolay Zavarov - Author
Nikolay ZavarovAuthor

Nikolay is an experienced specialist in financial markets and co-founder of IamForexTrader. He has been successfully trading Forex since 2014 and has been actively involved in the cryptocurrency market since 2017.

He develops investment strategies adaptable to any level of experience and has been actively investing in stocks, bonds and ETFs since 2018.

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