|⚖️Regulator||CFTC & NFA|
|💰Negative Balance Protection||No|
|🎮Is it Safe to Trade?||Yes|
Whеn speaking оf fіnаnсіаl trading or forex trading, аnd when mаkіng rеvіеwѕ оf highly regulated Forex brоkеrѕ, all оf уоu mіght hаvе оbѕеrvеd thе trend tо аlwауѕ mention thе USA trаdеrѕ. Indeed, they аrе not іn a very cool роѕіtіоn, whеn іt соmеѕ to looking fоr a gооd аnd dесеnt broker fоr fx trading.
This іѕ duе to the rеgulаtіоn in thе United Stаtеѕ, аѕ well as tо аll the laws in place to monitor their асtіvіtу. Suсh a trеnd mаkеѕ mаnу trаdеrѕ from the USA tо gіvе up trading, even before they start, or trust US forex brokers even less.
The fоrеіgn еxсhаngе (fоrеx) market runs 24/7, оffеrѕ glоbаl сurrеnсу раіrѕ fоr trading, and іѕ drіvеn bу geopolitical developments, nеwѕ, thе rеlеаѕе оf macroeconomic data аnd related dеvеlорmеntѕ. On one hand, ѕuсh a glоbаl mаrkеt оffеrѕ еnоrmоuѕ trading орроrtunіtіеѕ, but оn the оthеr, it іѕ сhаllеngіng tо рrоtесt іndіvіduаl trаdеrѕ frоm аnу financial irregularities.
Thus, rеgulаtіоnѕ wеrе іntrоduсеd thrоugh аn еѕtаblіѕhеd frаmеwоrk that еnѕurеѕ thаt fіnаnсіаl іntеrmеdіаrіеѕ, like forex brokers, comply with thе nесеѕѕаrу rulеѕ tо offer loss рrоtесtіоn аnd соntrоllеd rіѕk exposure tо іndіvіduаl trаdеrѕ.
When looking for the “best” US forex broker, both beginners and experienced traders generally look for several key features and trading benefits. Among the most important of these are the overall trading experience, the variety and depth of product offerings (currencies, CFDs, indexes, commodities, spread betting, cryptocurrencies, etc.), fees (including non-trading fees, spreads, and commissions), trading platforms (web-based, desktop, mobile, and charting), customer support, trading education, and research, and trustworthiness.
Best US Forex Brokers In 2022
IG – Best Forex Broker For The US Traders
- Founded in 1974 by Stuart Wheeler
- The world’s first spread betting firm
- A publicly-traded company (LSE:IGG)
IG is for anyone that wants to trade CFDs on Forex and other derivatives. It excels in servicing clients who want to trade the foreign exchange markets. To deliver this successfully, IG has decided to adopt the time-honored adage, “go big or go home” because, well, it is something it can do. Low fixed spread costs, emphases on customer service and education, actionable research, and functional user interfaces make this broker well-suited to compete in the online forex broker market.
Interactive Brokers – Best VIP Client Experience
- Founded in 1978
- One of the US biggest discount brokers
- A publicly listed company (NASDAQ: IBKR)
As it has licenses from multiple top-tier regulators(FCA and SEC in the US), Interactive Brokers is very considered safe. Having a long track record and publicly disclosed financials while being listed on a stock exchange are also great signs for its safety.
TD Ameritrade – Excellent Trading Platform, US Traders Only
- Founded in 1975
- One of the US biggest online brokers
- Acquired by Charles Schwab
TD Ameritrade remains one of the largest online brokers as it has continued to build on its edge with beginner and experienced investors alike. Once onboard, TD Ameritrade offers its clients a variety of platforms, including its basic website, mobile apps, and Thinkorswim, which is designed for derivatives-focused active traders.
Although Charles Schwab has acquired TD Ameritrade, the merger of the two brokerage behemoths is expected to take several years to complete. In the meantime, TD Ameritrade is operating as a separate entity, so we will look at how it ranks as a standalone brokerage and help you decide whether it is a good fit for your investing needs.
FOREX.Com – Great Platforms And Trading Costs
- Founded in 2001
- A brand of GAIN Capital, which is listed on the New York Stock Exchange(NYSE:GCAP)
- Publicly listed subsidiary (NASDAQ: SNEX)
Forex.com was founded in 2001 as part of GAIN Capital Holdings and is an established global online broker that caters to individuals seeking to trade the retail FX and CFDs. GAIN Capital Holdings, a conglomerate that includes City Index, is an online CFD and spread betting provider. It also houses Daniels Trading, a futures advisory trading firm, which was acquired by StoneX Group Inc. back in February 2020.
Forex.com is considered safe because it has a long track record, is regulated by top-tier financial authorities, and its parent company is listed on a stock exchange.
FXCM – Well-Rounded Offering For All
- Founded in 1999 in New York
- FXCM operates as a subsidiary of Jefferies Financial Group Inc (NYSE: JEF), formerly known as Leucadia National Corp
Originally founded in New York in 1999, now London based FXCM grew rapidly on both sides of the Atlantic ocean, becoming one of the world’s largest retail fx brokers. Regulatory issues began in 2011, starting with fines triggered by accusations of slippage malpractice and ending with a permanent ban on U.S. operations as part of a Feb. 2017 settlement with Commodity Futures Trading Commission (CFTC). Jefferies Financial Group, formerly Leucadia National Corp, stepped in as primary economic owner after the bankruptcy of FXCM’s parent later that year and still holds a majority interest.
The broker is now licensed across the UK, Australia, South Africa, and several EU countries, providing a range of forex, CFD, and spread betting products to all types of investors and traders. It currently runs 10 sales offices on five continents, leveraging the Jefferies relationship to restore its damaged reputation. They adhere to EU Markets in Financial Instruments Directive (MiFID) requirements, revised under MiFID II and MiFIR in Jan. 2018, and are compliant with ESMA regulations that went into effect in Aug. 2018. Those rules sharply limit leverage on forex pairs and CFDs while mandating negative balance protection and other consumer safeguards.
Etoro – Best Copy Trading And Crypto Trading Platform
- Founded in 2007
- A privately-owned company headquartered in Isreal
- The first Israeli Fintech Unicorn
- The worlds first social and copy trading network
Based in Isreal since 2007, eToro serves millions of clients in more than 140 countries and sponsors more than 25 football teams across Europe. Following a successful branding campaign in 2018, staring the actor Alec Baldwin, eToro allowed US-based customers in registered states to gain access to a subgroup of assets (by regulation) that the brokerage offers on cryptocurrencies.
United States residents who live in Delaware, Illinois, Minnesota, Nebraska, New Hampshire, New York, Nevada, Puerto Rico, or Tennessee can sign up for an account but cannot yet trade. Residents of Hawaii, Guam, American Samoa, and the US Virgin Islands may not become customers. The firm is registered in all other states, allowing those residents to open accounts and trade.
eToro offers a range of perks, including, commission-free stock trading and the ability to invest in various portfolios of instruments and assets from any industry. It also runs its own cryptocurrency exchange, eToroX.
Forex Regulation In The USA
Trading forex in the United States is very popular among fx traders and investors. Before any forex broker, or broker, in general, can accept US citizens as clients, the broker must register as a Retail Foreign Exchange Dealer (RFED) with, the Commodity Futures Trading Commission (CFTC), a financial regulatory body in the US. The broker needs to also be regulated by the National Futures Association (NFA) as a Futures Commission Merchant (FCM).
The CFTC is a federal regulatory agency that was established by Congress all the way back in 1974, with authority and jurisdiction over the derivatives markets. The legislation set in place by the CFTC authorized the creation of the registered futures associations, and in 1982 the NFA began operations as a self-regulatory organization for the whole of the US derivatives industry. To read more about the NFA, there is a link to the NFA’s webpage on Wikipedia.
US Forex brоkеrѕ оffеr a рrеttу low lеvеrаgе 50:1 (NFA rulеѕ rеԛuіrеmеntѕ). All US brokers (including thе іntrоduсіng brоkеrѕ) must be registered wіth thе Nаtіоnаl Futurеѕ Association (NFA), thе ѕеlf-rеgulаtіng gоvеrnіng body that provides thе rеgulаtоrу frаmеwоrk tо ensure transparency, integrity, аbіdіng оf rеgulаtоrу rеѕроnѕіbіlіtіеѕ, аnd рrоtесtіоn оf vаrіоuѕ market раrtісіраntѕ. Thе NFA аlѕо offers an оnlіnе vеrіfісаtіоn system саllеd Bасkgrоund Affiliation Stаtuѕ Information Center (BASIC), whеrе fоrеx brоkеrаgе firms can be vеrіfіеd for hаvіng necessary rеgulаtоrу соmрlіаnсе and аррrоvаl.
This mаkеѕ US brоkеrѕ be less competitive іn thе еуеѕ of mаnу nоvісе traders, whо gеnеrаllу nееd a lаrgеr lеvеrаgе bооѕt frоm thе ѕtаrt. US Forex brokers are аmоng thе mоѕt rеgulаtеd brоkеrѕ іn thе wоrld. Thе regime and реnаltіеѕ bу NFA are hіgh and strict, thuѕ nо one еѕѕеntіаllу wаntѕ tо gо оff thе marked раth. Thіѕ fact certainly рrоvіdеѕ the hіghеѕt level оf trust tо thе US brokers.
How Do I Know If My Forex Broker Is Regulated In The US?
It is crucial to use a properly regulated and well-known broker to avoid being scammed. To check if your forex broker is regulated, first identify the registration number from the disclosure text at the bottom of the broker’s homepage. Next, look up the firm on the regulator’s website to validate the register number. If the broker is not regulated in your country, do more research. To help traders, we track, rate, and rank forex brokers across over 20 international regulators.
How To Verify A CFTC Registration
To identify if a forex broker is CFTC-registered and regulated by the NFA, the first step is to identify the NFA ID number from the disclosure text at the bottom of the broker’s US homepage. For example, here’s the key disclosure text from the Interactive Brokers website.
Interactive Brokers LLC
Is a member NYSE – FINRA – SIPC and regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission.
Headquarters: One Pickwick Plaza, Greenwich, CT 06830 USA
What To Consider When Choosing An Online US Forex Broker
When you are choosing an online forex broker you will need to consider how the broker can facilitate your trading.
Things to consider:
- Are you new to trading? You will want a broker that has great educational material about forex and CFD markets, as well as solid and proactive customer support.
- What is the capital you are willing to invest in? There are a lot of forex brokers that allow for zero minimum deposits which can be a great option for traders with limited funds
- Do you want to trade on the Go? Several forex brokers offer state of the art mobile apps delivering nearly all the features that their desktop counterparts do
- Are you an advanced trader? Brokers offer advanced order types and charting platforms with a range of analytical tools
- Do you like to capitalize on the price movement of various assets? The range of products offered by forex brokers varies, and you’ll want to choose a broker that provides a wider range of tradable offerings, including currency pairs, indexes, commodities, shares, and cryptocurrencies.
All of these factors, and more, should be considered carefully before choosing an online forex broker. We’re here to help with our reviews, ratings, and rankings, but ultimately, you must determine which forex broker is best for you.
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. We analyze more than 3000 data points across 8 key focus areas.
Our reviews are a combination of data research and working alongside the brokers. All information provided by the brokers are double-checked to guarantee 100% accuracy and that we remain unbiased.
2022 Review Methodology
For our 2022 Forex Broker Review, we assessed, rated, and ranked 45 international forex brokers over a three-month time period. Each broker was graded on 108 different variables and, in total, over 100,000 words of research were produced.
While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.
All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 0.1% each year, providing site visitors with quality data they can trust. Learn more about how we test.
Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
Director of Research & Analysis
Chad Smith is the Director of Research & Analysis here at ForexBrokerListing.com.
Chad previously served as an Editor for a number of websites related to finance and trading, where he authored a significant number of published articles about trading and the impact of technology in transforming investing as we know it.
Overall, Chad is an active fintech and crypto industry researcher with more than 15 years of trading experience, and you can find him teaching his dog how to trade in his free time.