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Home » CFTC » Trading Platform » Best Forex Trading Platform For Beginners
To find the best forex broker for traders in the USA, we compared the full list of CFTC-regulated brokers based on forex trading platform, spreads and features. View the full forex broker comparison below.
Written byJustin Grossbard
Edited byLaura Wolfe
Fact Checked byRiley Adams
Edited byLaura Wolfe
Fact Checked byRiley Adams
Updated:
What Changed?
Each month we update average spreads data published by the brokers the retail brokers lose %
Fact Checked
We double-check broker fee details each month which is made possible through partner paid advertising. Learn more this here.
Our forex comparisons and broker reviews are reader supported and we may receive payment when you click on a link to a partner site.
Best Forex Trading Platforms For Beginners In US
The top 7 beginner forex brokers for USA traders are:
- OANDA - Best Forex Trading Platform For Beginners
- FOREX-com - Top Low Spread Forex Broker
- IG Group - Great Broker for Beginners
- TD Ameritrade - Top Forex Broker Range Of Markets
- Trading.com - Great Choice For Metatrader 5
- Nadex - Good For Trading Forex Options
- eToro - Best US Forex Broker For Social And Copy Trading
Broker | Our Rating | Regulation | Standard EUR/USD Spread | Standard GBP/USD Spread | Standard AUD/USD Spread | Raw EUR/USD Spread | Raw GBP/USD Spread | Raw AUD/USD Spread | Commissions (USD Base) | MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
81 | NFA/CFTC | 1.4 | 2 | 1.4 | - | - | - | 120ms | $0 | 68+ (Spot) | - | 50:1 | 100:1 | ||||||
71 | NFA/CFTC FCA, ASIC | 1.2 | 1.9 | 1.4 | - | - | - | $6.00 | 174ms | $450 | 80+ (Spot) | - | 50:1 | 50:1 | |||||
61 | NFA/CFTC FCA,CIRO | 1.50 | 1.5 | 1.4 | 0.0 | 0.2 | - | $7.00 | 30 ms (May 2023) | $100 | 80+ (Spot) | - | 50:1 | ||||||
43 | ASIC, FCA CYSEC | - | - | - | - | - | - | - | 120ms | $10 | - | 24 (Spot) | |||||||
41 | SEC, NFA/CFTC FINRA | 1.4 | 1.3 | 1.2 | - | - | - | - | 110ms | $2000 | 70+ (Spot) | - | 50:1 | 50:1 |
What Are The Best Forex Brokers For Beginners In USA?
New to forex trading and wondering how to choose the best CFTC-regulated forex broker? CompareForexBrokers.com has profiled the top brokerages ideally suited for American readers new to trading forex and CFD products. Our reviews are based on assessing trading fees, customer support, and execution speeds to help new traders find an easy-to-use broker that provides a high level of support to help them get started. Our interactive spreads module also enables you to easily compare and evaluate the trading costs of each broker we’ve reviewed.
1. OANDA - Best Forex Trading Platform For Beginners
Forex Panel Score
81
Average Spread
EUR/USD = 0.6
GBP/USD = 0.9
AUD/USD = 0.7
Trading Platforms
MT4, TradingView,
Oanda Web (fxTrade)
Minimum Deposit
$0
Visit Broker
Why We Recommend OANDA
We’ve put OANDA to the test, and it didn’t disappoint. They’ve mastered the global forex game with over 25 years of experience and branches stretching from the US to Australia. We found their account structure straightforward, perfect for those just dipping their toes into forex. Plus, trading costs are easy to work out, eliminating any guesswork.
Pros & Cons
- Low spreads and competitive trading costs
- Offers an extensive range of forex pairs
- Provides trading tools for free
- No share products to trade
- Customer support is not 24/7
- Limited educational resources
Broker Details
Having personally trialled the global forex broker OANDA, which boasts offices across Europe, the US, Asia, and Australia, we can attest to the value you’ll derive from their over 25 years in the industry. Their straightforward account structure and quickly calculable trading costs make them a solid choice for beginners. Meanwhile, we observed that the array of potent integrations and their well-crafted in-house platform offer a wealth of advantages to the more advanced traders.
Key Strengths:
- Low spreads and competitive trading costs
- Wide variety of assets to trade
- 24/7 customer support by traders, for traders
OANDA Trading Accounts
For high-volume traders or beginners aiming to boost their ROI, OANDA’s fee structure might be precisely what you’re after. Their Spread Only Pricing account wraps the commission within the spread from just 0.6 pips. You’ll also appreciate the low forex fees on extended positions.
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
There’s no pressure to front a minimum deposit or sustain a minimum balance to activate and maintain your OANDA account. However, you’d incur a monthly fee of up to ten units of your account currency if you remain inactive for over a year.
OANDA also assists in reducing some indirect trading expenses, like withdrawals. You can confidently pull funds out of your OANDA account free of charge, irrespective of your chosen method: debit card, credit card or ACH transfer. But remember that opting for wire or ACH money transfers might stretch processing times beyond six days.
OANDA Trading Platforms
OANDA presents a diverse suite of trading platforms featuring their proprietary web, mobile, and tablet options powered by TradingView. Our experience indicated that newcomers and seasoned traders would find these platforms apt. The OANDA Trade platform, particularly, caught our eye with its robust performance analytics and advanced charting options.
If you’re a MetaTrader 4 user, OANDA also allows access to 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
One area of improvement? Available markets. While OANDA grants American traders access to a commendable 68 currency pairs, we felt there’s room for a bit more diversity. You’ll undoubtedly find all the major pairs – EUR, GBP, USD, JPY, NZD, AUD, and CHF – but perhaps fewer exotic options than provided by some competitors.
Our Verdict on OANDA
Given OANDA’s remarkable range of instruments, tight spreads, and dynamic trading tools apt for any strategy, they easily clinch the top rank among forex brokers catering to US traders. They were also named the overall best US forex broker for more advanced traders based on their low trading costs and advanced trading environment.
OANDA offers new Welcome Bonus of up to $10,000
OANDA is now offering a Welcome Bonus of up to $10,000 for all new account holders, a unique incentive to help boost your trading account. To opt into this offer you simply need to:
- Complete an online form on OANDA’s website
- Open an account and deposit at least $300 and maintain this for at least 60 days
- Meet OANDA’s minimum trade volume requirements of $25,000
- Do all the above by 30 April 2024 and receive $100
or
- Complete an online form on OANDA’s website
- Open an account and deposit at least $50,000 and maintain this for at least 60 days
- Meet OANDA’s minimum trade volume requirements of $50,000,000
- Do all the above by 30 April 2024 and receive $10,000
View OANDA ReviewVisit OANDA
*OANDA’s Welcome Bonus of $10,000 is now available for all new account holders.
2. FOREX.com - The Best Broker That Has Accounts for All Trading Types
Forex Panel Score
61
Average Spread
EUR/USD = 1.2
GBP/USD = 1.6
AUD/USD = 1.4
Trading Platforms
MT4, MT5, FOREX.com Trading Platform
Minimum Deposit
$100
Visit Broker
Why We Recommend FOREX.com
We were impressed with FOREX.com’s low spreads and its solid selection of trading platforms and products. For those utilising MetaTrader 4, you’ll find an ideal blend of tight spreads and swift execution. With over 80 forex spot pairs for trade, we think FOREX.com is one of the best choices for Forex trading.
Pros & Cons
- Competitive spreads
- Great range of currency pairs
- Good education resources
- No 3rd party social trading tools
- No swap-free account
- Limited crypto range (where offered)
Broker Details
Having put FOREX.com through its paces, we can confirm their no-dealing desk model does indeed grant US traders access to the most competitive spreads compared to other international brokers active in the USA.
Key Strengths:
- Sophisticated technical trading tools
- Great variety of currency pairs
- Fast trade execution
FOREX.com Account Types
FOREX.com is a market maker for its Standard and MetaTrader 4 accounts, offering variable spreads commencing from 1.2 pip without any commissions. You’ll appreciate the inclusion of NinjaTrader and Capitalise.ai for automating your trades.
If you are after spreads from 0 pips, FOREX.com RAW Pricing account is available. You will pay a commission of $14 per lot round-turn ($7 for entry and another $7 for exit) for every 100k lot but this is outside the spread meaning better price transparency.
FOREX.com Trading Products
With an impressive lineup of 84 currency pairs spanning majors, minors, and exotics, FOREX.com is a front-runner for those traders focused solely on currencies. Notably, minimum spreads for popular pairs such as EUR/USD, USD/CAD, and EUR/GBP can reach lows of 1.2 pip when using a standard account.
FOREX.com Trading Platforms
FOREX.com likewise offers US-based forex traders a variety when it comes to trading platforms. In addition to the broker’s own mobile, web and desktop trading interfaces, you have the option to trade via MetaTrader 4.
For those with more ‘advanced’ account preferences, FOREX.com supports integrations with superior charting tools like TradingView and sophisticated analytics through Trading Central. And if automation or algorithmic trading is your cup of tea, Capitalise.ai and TradingView can seamlessly integrate with the FOREX.com platform.
Our Verdict on FOREX.com
For those dedicated to good trading platforms like FOREX.com or MT4, desiring the tightest spreads and unmatched execution speed, FOREX.com is your golden ticket, their offering of 84 forex pairs is bound to satiate the majority of forex traders.
3. IG Group - Great Broker for Beginners
Forex Panel Score
71
Average Spread
EUR/USD = 1.13
GBP/USD = 1.66
AUD/USD = 1.01
Trading Platforms
MT4, IG Trading Platform, L2 Dealer, ProRealTime
Minimum Deposit
$0
Visit Broker
Why We Recommend IG Group
We were impressed with IG’s vast array of trading pairs. Its competitive spreads also genuinely stand out among US-based online forex brokers we’ve tested. The extensive assortment of calculators and charting tools enhances the trading experience. Moreover, beginners are well-catered with a wealth of educational and research materials.
Pros & Cons
- Comprehensive educational tools and trading support
- Impressive proprietary trading platforms
- Robust research tools and trading strategy insights
- No social trading tools
- Limited trading products on MT4
- Limited account type for US-based traders
Broker Details
Out of all the online forex brokers in the US that we’ve reviewed, IG distinctly shines due to its variety of trading pairs, competitive low spreads, and extensive set of calculators and charting tools.
As traders who have navigated the global scene, we can attest to IG’s reputation. This broker is especially beneficial for those just starting, given the impressive array of educational and research materials they offer.IG includes helpful guides and demonstrations, as well as the opportunity to practice with a demo account before “graduating” to live trading.
Key Strengths:
- Excellent educational tools and trading supports
- Great proprietary trading platforms
- Extensive research tools and trading strategy ideas
IG Trading Accounts
While IG offers only a single account type for US-based forex traders, the broker’s Standard account caters aptly to newcomers and seasoned traders.
Variable spreads beginning at .08 pips are notably competitive, outperforming IG’s closest competitors by up to 20% for EUR/USD pairs. And though IG functions as a market maker, the absence of commissions on trades ensures that trading with IG remains cost-effective, even for those of us trading in high volumes.
IG Trading Platforms
From our experience, IG’s proprietary platforms — web, mobile, or tablet — adjust fluidly based on one’s trading requirements and expertise. Those in the US using IG’s platforms have the advantage of 32 indicators, 20 drawing tools, and various market research tools.
For forex trading specialists and those interested in implementing automated trading strategies, IG offers two additional platforms: MetaTrader4 and ProRealTime.
IG Trading Products
In addition to 10 major currency pairs, including AUD, NZD, SGD and HKD, the broker offers an array of exotics, with a special emphasis on Asian and Scandinavian currencies.
IG caps leverage for major currency pairs at 50:1 – the maximum allowed by US law – and minor pairs at 20:1.
Our Verdict on IG
Being pioneers in offering accounts to non-institutional traders, IG has had ample time to refine its trading platforms and gather a treasure trove of data and insights. This dedication is evident. While those at the peak of their trading journey might seek more adrenaline elsewhere, IG serves as an excellent springboard for those finding their feet in the world of forex trading.
4. TD Ameritrade - Top Forex Broker Range Of Markets
Forex Panel Score
41
Average Spread
EUR/USD = 1.4
GBP/USD = 1.3
AUD/USD = 1.2
Trading Platforms
Thinkorswim
Minimum Deposit
$0
Visit Broker
Why We Recommend TD Ameritrade
TD Ameritrade truly shines as one of the premier forex brokers available to US traders. Under the reputable banner of the Charles Schwab Corporation, it offers an unparalleled breadth of market research and educational resources. Beyond its standing in forex, it’s renowned for its more traditional investment avenues.
Pros & Cons
- Superior market research and analysis tools
- Outstanding customer service
- Competitive trading fees
- Limited to Thinkorswim platform
- Lacks third-party integrations
- No support for social or copy trading
Broker Details
Perhaps better known for more traditional investments, TD Ameritrade also is one of the premiumforex brokers accepting US clients. Owned by the Charles Schwab Corporation, the broker boasts access to market research and educational tools that many others struggle to rival.
Key Strengths:
- Top-tier market research and analysis tools
- Excellent customer service
- Low trading fees, including free stocks and ETFs
TD Ameritrade Account Types
In line with its ethos of offering a broad spectrum of investment services, such as long-term investments and retirement planning, TD Ameritrade keeps things straightforward for US traders.
Through our experience, the TD Ameritrade Standard account operates on a dealing desk model, presenting spreads of 1.0 pips. This aligns well with other US forex brokers, and there’s no commission attached to trades of any scale.
TD-Ameritrade Trading Platforms
Unlike other brokers, which typically emphasise providing access to the MetaTrader 4 platform, TD Ameritrade is fully committed to Thinkorswim. For those accustomed to MetaTrader 4, the features are comparable and complemented with added benefits like depth of market. We’ve found scalping to be a viable strategy here.
Given the relationship with Thinkorswim, TD Ameritrade provides traders with tools such as thinkScript, a unique algorithmic trading utility, and various technical studies. However, the primary reliance on Thinkorswim does limit the scope of third-party integrations, and the platform doesn’t support social or copy trading.
TD-Ameritrade Trading Products
While TD Ameritrade might seem restrictive regarding account types and trading platforms, it compensates with a vast array of available products. As users, we’ve had access to 70 forex pairs and, for those in the US, the ability to spot-trade ETFs, stocks, cryptocurrencies, indices, precious metals, and commodities.
Our Verdict on TD Ameritrade
For traders who value the reassurance of partnering with a reputable financial institution, TD Ameritrade emerges as a formidable choice. We’ve found it satisfies the needs of forex traders, but if you prefer to safeguard by diversifying your portfolio, you’ll likely appreciate the broker’s extensive roster of instruments.
5. Trading.com - Great Choice For Metatrader 5
Forex Panel Score
50
Average Spread
EUR/USD = 1.0
GBP/USD = 1.3
AUD/USD = 1.0
Trading Platforms
MT5
Minimum Deposit
$50
Visit Broker
Why We Recommend Trading.com
Trading.com stands out for those in the US who want the best of MetaTrader 5. Specialising exclusively in the latest offering from MetaQuotes, Trading.com has a lot to offer automated trading enthusiasts. While some competitors might offer tighter spreads or additional trading tools, when it comes to leveraging Expert Advisors for technical investment, Trading.com clearly emerges as our top choice.
Pros & Cons
- Commission free trading
- The research portal is impressive
- Competitive spreads
- Only offers forex markets
- Operates as a market-maker
- Has inactivity fees
Broker Details
For those with a penchant for automated trading or keen to dive into a broader spectrum of markets and instruments than MetaTrader 4 can cater to, settling for a broker proficiently in the platform’s upgraded and swifter version is the way to go.
While many brokers have integrated MetaTrader 5, we’ve noticed that Trading.com has carved a niche by zeroing in exclusively on this evolved successor to the renowned MT4.
Key Strengths:
- Wide range of available instruments to trade
- Straightforward trading environment
- Round-the-clock, live customer support
Trading.com Account Types
With Trading.com, we’ve had access to a singular, fuss-free account tailored for US traders. A modest initial deposit of USD$50, conveniently payable through wire or ACH transfer, as well as credit or debit card, and we were set to commence our trading journey.
It’s worth noting that this broker operates as a market-maker, ensuring a trade’s execution. Moreover, with spreads commencing at a commendable 0.7 pips and the absence of commission on round-turn trades of standard lots, it’s a worthwhile consideration.
For forex enthusiasts among us, Trading.com hits the mark. They provide 71 pairs in total, covering all major, minor, and exotic categories, including RUB pairs. Their leverage scales to the utmost permitted by US regulations.
Trading.com Trading Platforms
Whether you’re venturing into trading or eager to acquaint yourself with MT5’s enhanced functionalities, we reckon Trading.com is the optimal broker for those predominantly inclined towards MT5.
So, why this unwavering commitment to MetaTrader 5? Essentially, the latest iteration encapsulates the core strengths of MetaTrader 4 and introduces a set of novel features, positioning it as the dream platform for automated trading. The MT5 setup empowers traders like us to craft, evaluate, and deploy our customised trading bots or procure them from an active marketplace.
Furthermore, the platform impresses with its rapid execution and advanced charting capabilities, allowing us to monitor up to 100 charts concurrently across 21 timeframes with 80 technical analysis instruments.
Our Verdict on Trading.com
While Trading.com might not serve up the most thrilling spreads or a toolkit as exhaustive as some leading US forex brokers, it’s the go-to for those who leverage Expert Advisors. The broker offers only MetaTrader 5, which means access to thousands of bots.
6. Nadex - Good For Trading Forex Options
Forex Panel Score
65
Average Spread
EUR/USD = 1.7
GBP/USD = 2.3
AUD/USD = 1.4
Trading Platforms
NADEX Trading Platform
Minimum Deposit
$0
Visit Broker
Why We Recommend Nadex
We like Nadex for its robust and user-friendly platform, which pairs well with affordable trading costs. What particularly stood out to us was the protection from negative balances. If trades take an unexpected turn, Nadex promptly closes out positions, ensuring you’re shielded from drastic losses. It’s undoubtedly a solid pick for those venturing into exotic derivatives.
Pros & Cons
- Specialisation in binary options
- Full compliance with CFTC regulations
- Hassle-free account funding
- Limited instrument selection
- Does not accept credit cards for funding
- Charting tools not as extensive as others
Broker Details
Technically, while it’s an exchange centred on trading binary options, we’ve roped it into our curation of top-notch US forex brokers, given its distinctive proposition and captivating range of instruments, which embrace ‘call’ spreads and knock-outs.
Key Strengths:
- Dedicated to binary options and other exotic derivatives
- Fully regulated and CFTC-compliant
- Easy funding and low fees
Nadex Product Types
Through Nadex, we’ve ventured into many pioneering derivative tools, namely binary options, knockouts, and call spreads. Every underlying instrument has its roots in COMEX and NYMEX futures, ensuring the credibility of our trades. With licences from both NFA and CFTC, we took comfort in knowing that Nadex maintains our funds in isolated, safeguarded accounts, distinctly apart from their operational funds.
The position limits initiate at 100 for knockouts, journeying to 25 for Call Spreads, and hitting a peak of 2,500 for Binary options. However, for traders like us who’ve got an appetite for a richer instrument palette, Nadex might appear a tad restrictive. The exchange offers only 10 forex pairs, seven stock indices and three commodities.
Trading fees are set at $1 to enter or exit any contract before expiration, regardless of instrument, and $1 to settle a contract at the expiration of trading. If you’re out of the money when your binary option contract expires, however, you’ll pay no settlement fee.
As for account funding, Nadex lays out a gamut of choices, all sans any fees. A point to pencil in, though: Nadex steers clear of credit cards, only welcoming debit, cheque and ACH or wire transfers. It’s a subtle nudge to ensure you’re backed by liquid cash if trading’s on your agenda. When it’s time to pull out funds, Nadex keeps it plain sailing – no charges unless you opt for a direct wire to your account.
Nadex Trading Platforms
Nadex’s proprietary trading platforms allow account holders to access the markets anytime, anywhere, with mobile and desktop options. While charting tools may not be as extensive or analytics as powerful as a traditional forex broker, they more than suffice for this niche investment platform.
One thing we especially like? Nadex offers traders negative balance protection via its platform. If your strategy doesn’t pan out, the platform will automatically exit your positions to avoid catastrophic losses.
Our Verdict on Nadex
If your trading interests extend to exotic derivatives, Nadex is the safest, most sophisticated option available. The exchange offers a well-designed platform and competitive trading fees.
7. eToro - Best US Forex Broker For Social And Copy Trading
Forex Panel Score
43
Average Spread
EUR/USD = 1.0
GBP/USD = 2.0
AUD/USD = 1.0
Trading Platforms
eToro Trading Platform
Minimum Deposit
$50
Visit Broker
Why We Recommend eToro
We spent considerable time with eToro and found it to be an outstanding platform for those newer to trading. It allows you to tap into the expertise of seasoned market players. While its focus leans more towards stocks, ETFs, and cryptocurrencies, it serves as an excellent springboard for those contemplating more intricate asset trading. We recommend eToro as the best broker for those venturing into social and copy trading.
Pros & Cons
- Intuitive platform focused on copy trading
- Zero commissions on trading
- Can choose traders based on their track record
- Lacks third-party trading platforms
- Has withdrawal fees
- Does not offer ECN/STP executions
Broker Details
While exploring various trading platforms, eToro caught our attention with its distinct branding and resemblance to a social media interface. Although it’s a big name globally, eToro has yet to make its mark in the US fully. However, for those passionate about crypto, it’s worth a look.
While eToro’s US offerings don’t encompass forex trading, it allows trading in cryptocurrencies, ETFs, and stocks. Its unique selling point drew us to its dedicated focus on social trading.
Key Strengths:
- Innovative, game-ified approach to investing
- Excellent selection of cryptocurrencies
- Supports social and copy trading
eToro Account Types
For those in the US lucky enough to be in one of the few states where eToro operates, setting up a Standard account is a breeze, and you can fund it with various currencies, crypto included.
eToro operates as a market-maker, charging a ‘spread plus 1%’ fee for every 100K standard lot on round-turn trades, starting with a minimum spread of 1.0 pips. But, it’s worth noting the competitive edge: we can trade stocks and ETFs with a 0% commission, even when dealing with fractional shares.
eToro Trading Platforms
As one might expect from a broker touting itself as ‘the world’s largest social investment community, eToro’s trading platforms are optimised for just that: social trading forex
The platform showcases top traders’ sentiment data, and a feed strikingly similar to Twitter gives us real-time market insights directly from the eToro community. Just a heads-up: eToro has kept it simple with web and mobile interfaces and doesn’t entertain third-party integrations.
eToro Trading Products
While US-based eToro account holders don’t have the option to trade in crypto, they do have access to over 42 cryptocurrencies, as well as 2,500 stocks and 76,000 EFTs. eToro also offers investors the option to trade using Smart Portfolios, curated indices of similar stocks.
Our Verdict on eToro
For budding traders or those just dipping their toes into the market, eToro offers a valuable learning experience, especially by observing seasoned market players. While the platform leans more towards cryptocurrency, stocks, and ETFs rather than forex, it can serve as a gateway to more intricate trading instruments.
Which Is The Best Forex Broker For Beginners In The USA?
OANDA is the best forex broker for beginners in the USA because it offers a well-designed user interface that is uncomplicated, has clear competitive trading costs, and delivers excellent execution speeds.
Additionally, OANDA offers a wide range of educational resources and an unlimited demo account to help you learn how to trade more efficiently.
How To Choose A Beginner-Friendly Forex Trading Platform?
When choosing a beginner-friendly forex trading platform, you should consider the following:
- Regulation– Choose a forex trading platform with a broker that is regulated by the Commodity Futures Trading Commission (CFTC), an independent government commission that oversees forex trading in the US
- Range of Markets– Find a trading platform that offers the range of markets and currency pairs you want to trade
- Trading tools– Select a forex trading platform that offers advanced trading tools such as risk meters, guaranteed stop-loss orders, pip value calculators, and charting tools
- User Experience– Your forex trading platform of choice should have a user-friendly trading platform that offers fast execution speeds and excellent mobile functionality if you want to trade on the go
- Trading Costs– Choose a forex trading platform that offers tight spreads and low commissions
- Support– Find a trading platform that offers superb customer support as well as a demo account and other educational tools to help you learn how to trade
How To Know If A Forex Broker Is Regulated by CFTC?
You will know if a forex broker is regulated by checking their website. Alternatively, you can go onto the Commodity Futures Trading Commission (CFTC) website to see if your broker is listed there.
Which US Broker Has The Best Trading Platform?
OANDA is the US broker that has the best trading platform, especially if you are a beginner trader. OANDA offers excellent execution speeds, low trading costs, and a wide range of smart advanced trading tools to facilitate your trades.
Which Platform Has The Lowest Spreads For US Traders?
Forex.com has the lowest spreads for US traders with an average Standard account spread of 0.15 pips on EUR/USD and a zero-spread RAW account. Forex.com is consistently rated as one of the lowest-spread forex brokers, significantly reducing your trading costs.
Which Forex Trading Platform In The US Has The Best Mobile Trading App?
OANDA is the forex trading platform in the US that has the best mobile trading app. A simple user interface coupled with seamless functionality and advanced performance makes the OANDA mobile app an undisputed leader in mobile trading apps.
Which Are The Best MT4 Brokers In The US?
OANDA, Forex.com, and IG Group are the best MT4 brokers in the US. They each offer sophisticated trading tools with fast execution speeds and excellent trading costs. They are also the MT4 brokers that offer the widest range of financial markets and currency pairs to trade with.
MT4 is the preferred currency trading platform by both beginners and professional traders. As an active trader, you can access the foreign exchange market as well as the global markets and trade all sorts of asset classes with your preferred trading methodology.
FAQ
Is forex trading taxable in the US?
Yes, forex trading is taxable in the US. Income derived from forex trading in the US is taxed as a Capital Gains Tax at a rate of 15% for 60% of the gains.
As a retail trader, whether you are trading US Dollars/AUD or Bitcoin, or any sort of online trading, it is taxable in the country.
Is forex trading legal in the USA?
Yes, forex trading is legal in the USA so long as the broker is a legitimate forex broker regulated by the Commodity Futures Trading Commission (CFTC). They must also be members of the National Futures Association (NFA).
What are the forex trading regulations in the US?
The forex trading regulations in the US are as follows:
Must be regulated by the Commodity Futures Trading Commission (CFTC) | Must be members of the National Futures Association (NFA) | Must register as Futures Commission Merchants (FCMs) and Forex Dealer Members (FDMs) | |||
---|---|---|---|---|---|
Available leverage must be limited to 50:1 on major currencies and 20:1 on minor currencies | No hedging of forex currencies | Must have detailed record-keeping and regularly submit financial reports for review | |||
Trader funds should be held in a separate account at one or more qualifying banking institutions and not be used as operating capital | Have a dispute resolution process | Must have at least $1 million in operating capital |
How much money do I need to start trading forex?
While there are many no-minimum deposit accounts available that require no deposit to start trading, we recommend that you start trading with $100, especially if you’re a beginner trader who lacks experience.
If you feel confident enough to start margin trading, then we recommend you start trading with a minimum of $1000.
What are CFDs in forex trading?
CFDs, or Contract for Differences in Forex Trading is an agreement between a forex trader and a CFD broker to exchange the difference in the value of a financial product between the time that the contract opens and closes. You don’t take ownership of the underlying asset but rather use the derivative to speculate on the price movements.
Which forex broker offers the biggest amount of currency pairs?
TD-Ameritrade is the forex broker that offers the biggest amount of currency pairs with over 70 currency pairs on offer. They offer all of the major currency pairs as well as a good selection of minor and exotic pairs.
What are the forex trading limitations in the US?
Limitations on forex trading in the US include:
- Maximum leverage limits that are far lower than offshore counterparts (50:1 on major currency pairs and 20:1 on minor currency pairs)
- Most types of hedging are illegal in the US, including holding long and short positions of the same pair
- If you are a day trader, you may be subject to the Day Pattern Trading Rule where traders are required to have a minimum account balance of $25,000
Best Forex Brokers In USA Comparison Table
Broker | Minimum Deposit | Demo Account | Educational Resources | Customer Support | Leverage |
---|---|---|---|---|---|
OANDA | $0 | Yes | Yes | 24/5 | 50:1 |
Forex.com | $50 | Yes | Yes | 24/5 | 50:1 |
IG Group | $0 | Yes | Yes | 24/5 | 30:1 |
TD Ameritrade | $0 | Yes | Yes | 24/5 | 50:1 |
Trading.com | $100 | Yes | Yes | 24/5 | 30:1 |
Nadex | $250 | Yes | Yes | 24/5 | 1:1 |
eToro | $200 | Yes | Yes | 24/5 | 30:1 |
Online Forex Trading in the US: Legal, But Limited
Before moving further, it’s important to understand how the US differs from other jurisdictions regarding 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. However, the trader buys and sells the actual currency in spot forex trading.
Comparing Forex Brokers in the USA: Key Considerations
Choosing a forex broker can feel daunting, particularly for beginners who need more clarification about the differences between account types or trading platforms. However, even more experienced traders may hesitate before committing to a US forex broker, as accounts may need more familiar features or products commonly available overseas. That said, US traders can access 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, selecting a broker that permits and supports your strategy with the proper tools and trading platforms is essential.
- What’s my budget? Fees and commissions can vary from broker to broker and account to account. Before committing, 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. However, not all brokers offer access to all trading platforms, 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 authorised to engage in spot trading of forex by the Commodities Futures Trading Commission (CFTC) and the NFA. Only by opening an account with an authorised 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 are 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 looking 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 Licences 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 licences and approvals from the CFTC and the NFA requires a broker to show a minimum capitalisation of USD $20 million. That’s a lot to pay for one license that gives the broker access to a single market, unlike an EU license.
By contrast, the Australian Securities and Investments Commission (ASIC) requires only AUD$1 million in capital for forex brokers, and the International Financial Services Commission (IFSC) in Belize requires onlyUSD$500 thousand. European regulators like the Cyprus Securities and Exchange Commission (CySEC) may have higher minimum requirements. Still, 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.
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.
Disclaimer
Trading forex, particularly on margin, is inherently high risk. New traders should consider exposure carefully to manage exposure and take full advantage of any educational tools offered by an online broker.
Likewise, as retail investing increases in popularity, unethical individuals may attempt to profit illegally by posing as legitimate trading platforms or investment advisors. Comparing forex brokers operating under the authority of the appropriate regulatory body in your jurisdiction can protect you from questionable behaviour and, in some cases, outright scams.
About the author:
Justin Grossbard
Having traded since 1998, Justin is the CEO and Co-Founded CompareForexBrokers in 2004. Justin has published over 100 finance articles from Forbes, Kiplinger to Finance Magnates. He has a Masters and Commerce degree and has an active role in the fintech community. He has also published a book in 2023 on on investing and trading.