3 Best Forex Brokers in the US for 2024

List of Top US Forex Brokers

US Forex Regulatory Landscape

The United States is home to a number of high-quality brokers that can accommodate residents seeking to access the global foreign exchange market.

Forex is the largest, most liquid market in the world. It’s relatively unknown compared to the stock market, but has many qualities that are attractive to traders. The forex market can be accessed non-stop 24/5, is highly volatile, and can be traded with substantial leverage. Traders can easily go long and short, presenting opportunities in rising and falling market conditions. The barrier to entry is low, and it’s possible to get started with as little as $100.

The U.S. forex market operates under the careful oversight of the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Forex brokers in the US must comply with these regulators, with regular audits and a requirement to maintain $20 million in net capital. This ensures that US traders benefit from a high level of security and stability.

How Did FX Empire Select the Best Forex Brokers in the US?

We carefully considered the needs of forex traders in the United States and focused on the qualities that benefit this group the most.

• We confirmed that each broker accepts US clients, is registered with the CFTC, and is a member of the NFA.
• We assessed their overall level of financial strength and transparency.
• We looked for forex brokers offering a diverse range of instruments, including major, minor, and exotic currency pairs.
• We tested fees and trading costs, including spreads, commissions, swap fees, inactivity fees, and withdrawal fees, and selected the most competitive brokers.
• We reviewed available platforms and looked for key features, including robust charting, diverse order types, 1-click trading, watchlists, alerts, and an intuitive interface.
• We looked for insightful research and educational content to enhance traders’ understanding of the financial markets, develop effective trading strategies, and make informed decisions.
• We checked for premium accounts including benefits like cash rebates and a dedicated account manager.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology.

Now let’s go through the selected brokers.

How to Choose a Forex Broker in the US?

When looking for a US forex broker, you should pay special attention to the following points.

Is forex trading legal in the US?

Forex trading in the United States is legal and accessible to both institutional investors and individual retail traders. It is governed by a stringent regulatory framework that aims to protect traders and maintain market integrity. Here are the key regulatory aspects:

• Commodity Futures Trading Commission (CFTC): The CFTC is the primary regulatory authority overseeing forex trading in the US. It enforces regulations to maintain the integrity of the forex market, prevent fraud, and ensure fair trading practices. Forex brokers operating in the US must be registered with the CFTC and adhere to its rules. Explore Best CFTC-regulated forex brokers.
• National Futures Association (NFA): The NFA works in conjunction with the CFTC and acts as a self-regulatory organization for the forex industry. It sets standards and regulations for forex brokers and monitors their compliance. Forex brokers must also be NFA members and follow their guidelines. Explore Best NFA-regulated forex brokers.
• No CFD Trading: It’s important to note that Contract for Difference (CFD) trading is not permitted in the United States. While US residents can engage in forex trading, they are restricted from trading CFDs.
• Leverage Limits: The US has imposed strict leverage limits on forex trading to protect retail traders. Major currency pairs are subject to a maximum leverage of 1:50, while minor and exotic pairs have lower limits. This is in contrast to some other countries where higher leverage is allowed.
• Disclosure and Transparency: The regulatory framework in the US emphasizes transparency. Forex brokers must provide clear information to clients about trading conditions, fees, and potential risks. They are also required to disclose their financial status regularly.

Forex trading in the United States is tightly regulated to ensure the protection of traders and the integrity of the market. Traders should choose forex brokers that are registered with the CFTC and are members of the NFA to ensure they are operating within the legal framework and can enjoy a high level of regulatory protection.

Read more about Best regulated forex brokers.

How to verify if a forex broker is regulated in the USA?

Most regulated brokers prominently display their regulatory status on their official websites. Look for information indicating registration with the CFTC and NFA.

The BASIC tool on the NFA website allows you to look up a broker and confirm that it is an approved NFA member, registered with the CFTC, and a Retail Foreign Exchange Dealer (RFED). The page also shows the names of Listed Principals, including the CE, and CFO, and any disciplinary actions by the NFA or CFTC, if the broker has failed to abide by the requirements of the Commodity Exchange Act.

You can also visit the official website of the Commodity Futures Trading Commission (CFTC) and search for the broker’s name or registration details in the CFTC’s database.

You can also contact the CFTC and NFA directly to confirm a broker’s regulatory status if you have any doubts or concerns.

What fees to consider when choosing a forex broker?

It’s important to understand and compare the fee structures of different brokers before deciding which one to use. When choosing a forex broker, there are main types of fees that a trader should consider:

• Spreads: The spread is the difference between the buying and selling price of a financial instrument. It’s the main way forex brokers make their money. Lower spreads generally mean lower trading costs. The spreads offered are highly important in terms of your ability to succeed as a trader, so it’s worth comparing what is available across several brokers. For example, in our assessment, spreads of less than 1 pip in EUR/USD are competitive.
• Commissions: Some brokers charge a commission on trades in addition to spreads. This is often a fixed fee per trade, or it can be a percentage of the total trade volume.
• Overnight or Swap Fees: If you hold a forex position open overnight, you might have to pay a fee, known as an overnight or swap fee. It’s a fee that you pay or receive depending on the interest rate difference between the two currencies involved in the pair and whether you are long or short.
• Inactivity Fees: Some brokers charge inactivity fees if you don’t make a certain number of trades within a specified timeframe.
• Withdrawal Fees: Some brokers may charge you for withdrawing money from your account. Check the fee structure and withdrawal methods before choosing a broker.

Not all brokers charge fees in the same way. Some charge a commission per trade, while others earn through the spread. Some may also include hidden charges like inactivity fees or withdrawal fees. It’s crucial to understand these fee structures to make an informed comparison.

Read more about Best lowest spread forex brokers.

How to choose a forex trading platform?

An intuitive, easy-to-navigate platform will allow you to launch into the trading world with minimal hitches. The most user-friendly platforms are typically browser-based platforms created by the broker. Look for easy-to-implement features such as watchlists, trading from the chart, search, news, and a customizable interface. The MetaTrader platform has advanced features like backtesting, automated trading, and a wide range of order types, but it presents a steep learning curve for beginners.

Check out our guide on Best forex trading platforms.

There are a variety of trading platforms available to forex traders. Here are a few that you may want to consider for gaining great trading results.

MetaTrader 4 and MetaTrader 5 are among the most popular and widely used forex and CFD trading platforms, both of which are offered by many U.S. forex brokers. These platforms provide a wide range of features and tools, including advanced charting tools, automated trading through expert advisors, custom indicators, one-click trading, and portfolio management.

Check out our dedicated guides on Best MT4 forex brokers and Best MT5 forex brokers.

TradingView is a rapidly growing and widely popular charting and trading platform with over 50 million users worldwide, including in the US. It enables users to track nearly all markets and describes itself as a ‘supercharged super-charting platform and social network for traders and investors.’

Read more about Best TradingView forex brokers

What is the minimum deposit?

The minimum deposit required by a forex broker varies widely and depends on the individual broker’s policies. Typically, the minimum deposits at forex brokers are relatively low. For example, among the brokers listed in this article, minimum initial deposits range from $0 in the case of OANDA US to $250 in the case of tastyfx.

What account types are available?

A broad range of account types helps a broker cater to different trader profiles.

Here are some of the most common account types offered by forex brokers in the US:

• Standard Accounts: These are the most common types of accounts that forex brokers offer. In the US they provide access to the global forex market and may also include other markets like spot commodities and cryptocurrencies. The minimum deposit requirement for standard accounts can vary greatly between brokers.
• Premium Accounts: These accounts are designed for high-volume or professional traders. They offer cash rebates based on the volume you trade and may have other perks like a dedicated account manager.
• Demo Accounts: Almost all forex brokers offer demo accounts where traders can practice their strategies with virtual money before risking real money. This is a great way to get to know the broker’s platform and test your trading skills.

Read more about Best forex demo accounts.

What is the available leverage?

The availability of leverage is a significant advantage in forex trading. In the United States, leverage in forex trading is regulated by the National Futures Association (NFA). Leverage allows traders to amplify their positions using borrowed funds, extending their trading potential beyond their account balance. For spot forex trading, U.S. traders have access to a maximum leverage of 1:50. This means that with a $1,000 account balance, traders can control positions worth up to $50,000. However, in the case of forex futures, a higher leverage of over 1:400 is available.

What is margin in forex trading?

Margin in forex trading is essentially a collateral or security deposit required by your broker to enable you to open and maintain trading positions in the foreign exchange market. It allows traders to control larger positions with a relatively smaller amount of capital. Leverage represents the ratio between the total position size and the margin required. For instance, with 1:100 leverage, you can control a position 100 times the size of your margin.

It’s vital to use margin judiciously and exercise caution. Overleveraging can lead to substantial losses. Risk management is crucial, and traders should set stop-loss orders to limit potential losses. Regularly monitor your account balance, margin usage, and equity (account balance plus or minus unrealized profits or losses). Also, understand your broker’s margin requirements and policies to use margin effectively while minimizing risks.

Is customer support reliable?

Having solid support on hand is essential. Check the hours of availability, for example, whether help is on hand 24/7 or only during business hours. Chat support is the most convenient, so look for an easy-to-access chat window built into the broker platform. In the case of a platform outage, it is also important to be able to contact support via phone.

How to avoid forex scams?

• High-Return Guarantees. A common scam in the forex industry involves vendors offering a trading strategy that guarantees an outlandishly high return in little time. These may involve automated trading using bots or a signal service where trades are shared via chat or social media. Nobody can guarantee returns with certainty, and it is more likely that such strategies will lose money. When assessing strategy or signal providers, you should look for a live track record audited by a third party and be conscious that past performance does not guarantee future results.
• Lack of Protection. Traders should also be cautious about opening an account with an unregulated offshore broker. Such brokers may offer a straightforward account opening process, bonuses, and high levels of leverage, but client funds are typically not protected. Meanwhile, brokers regulated by top-tier authorities must undergo regular audits and are held accountable for misconduct.

Our Methodology

In our selection of the best forex brokers, we utilize our proprietary methodology, focusing on top performers in our comprehensive reviews. FXEmpire, with a history of broker reviews since 2010, employs a detailed evaluation process involving over 250 data points per broker.

Our analysis spans nine categories: Trust, Fees, Platforms and Tools, Tradable Instruments, Customer Service, Deposit and Withdrawal, Account Types, Research, and Education. We delve into areas like regulatory status to ensure a clear understanding of fund safety and broker benefits.

The review process includes live testing, research, and demonstrations, with a focus on spreads, swap fees, and user experience of trading platforms. We emphasize editorial integrity, ensuring unbiased and fact-checked reviews. Read more about our review process here.

In choosing the best US forex brokers, we considered regulatory compliance, financial stability, low spreads and swap fees, feature-rich platforms, and user-friendliness. We favored brokers offering a variety of tradable instruments and account types suitable for all trader levels. Customer support responsiveness, ease of transactions, and leverage options were also key factors. Preference was given to brokers with comprehensive research and educational resources to support informed trading decisions.

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