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US Forex Brokers

US Forex brokers must be licensed as futures commission merchants (FCM) and must have retail foreign exchange dealer (RFED) license. FCM and RFED are licensed by the Commodity Futures Trading Commission (CFTC) and become members of -the National Futures Association (NFA), a self-regulatory organization whose jurisdiction extends for the whole futures market.

NFA-regulated forex brokers face a number of restrictions and must meet various requirements, the most important of which are the following:

- the capital requirement: NFA-registered brokers are obliged to maintain a net capital of at least $20 million to guarantee clients positions.

- the FIFO (first in, first out) rule: Traders must close their oldest transactions first whenever they have more than one position open on the same currency pair;

- leverage restriction: All US brokers are required to provide leverage no higher than 1:50, while brokers outside of US regulations purview are free to provide up to 1:1000 or even 1:2000 leverage.

- hedging is not allowed.

Furthermore, the NFA adopted new rules on disclosure of transaction data In 2007, according to which US regulated brokerages are required to provide their customers with access to certain transaction execution data for greater transparency.

As you can see from above, the US forex brokerage arena one of the most tightly regulated in the entire world. NFA’s fines are solid so basically no one wants to go off the marked path and US brokers enjoy a higher level of trust. On the other hand, however, after the Dodd–Frank Act was passed (capping leverage to 1:50 and prohibiting hedging), the number of FCMs keeps shrinking and there is an ever-growing demand for brokers (outside the US) who accept US clients.

Top 5 US Forex Brokers

Do you live outside the USA? If so, the brokers listed below may not be regulated in your country. For our list of best internationally regulated brokers, see our global brokers list.

If you’re a US citizen trying to choose between different US Forex brokers, you’ve probably realized that your options are more limited than those available to international traders. US Forex brokers must be regulated by the NFA or CFTC, and are subject to stringent restrictions which are designed to protect US traders. NFA regulated brokers must limit their leverage to 50:1 and conform to rigorous record-keeping and reporting requirements.

Nevertheless, there are a handful of NFA regulated Forex brokers in the USA that offer reliable service and user-friendly platforms (there are also several US-based Forex brokers that operate within the country's borders without the necessary regulation). We’ve tested the trading platforms, customer service and ease of use of the top US Forex brokers and recorded our findings to help you choose the NFA regulated broker.

If you're looking for a Forex broker outside of the United States, check out our Forex brokers reviews list to find the broker that's appropriate for you.

US Forex Brokers

FOREX.com is a currency trading website operated by Gain Capital Holdings, Inc., a financial services company that’s been in business since 1999. GAIN Capital is listed on The New York Stock Exchange (NYSE: GCAP).

Nadex is a Chicago-based regulated derivatives exchange designed for the retail trader that offers only limited risk products. It is part of the IG Group, a global financial services provider with a market cap of over ?2.2bn. Unlike many other binary options brokers, Nadex.com is available to U.S. citizens as it is based in the States and is a regulated US exchange, designated by the CFTC (Commodity Futures Trading Commission) and is legally permitted to accept US residents as members. At Nadex, traders have access to trade over 2,400 binary option contracts daily on some of the most popular financial markets including Forex, stock indices and commodities.

Coinbase Inc. is a digital currency wallet and platform where merchants and consumers alike can buy, sell, store, bill and pay with the range of the major modern digital crypto-currencies such as Bitcoin, Ethereum, and Litecoin, against 32 established national fiat currencies. Coinbase is based in San Francisco, California, U.S.A. and was founded in 2012. In January 2017, Coinbase obtained a “Bitlicense” from the New York State Department of Financial Services, which authorizes the company to provide virtual currency business operations in New York. Coinbase Inc. is a privately-owned company, and has raised over $117 million from investors to date. As of May 2017, it had more than 7.4 million registered users

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Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Forex trading in usa

it’s legal of course, but not all the brokers are capable of providing brokeage business in USA, as we all know, NFA has been suppressing Forex trading and supporting future and stock for a long time.

The obvious evidence is only 5 legal forex brokers are allowed to provide retail forex trading in US and previous largest broker-FXCM, now run from London after being banned from United States markets for defrauding its customers.

Let’s say biggest forex hubs are UK (FCA), AU(ASIC), Cyprus(CySEC). After MiFID II has been applied and ASIC clearly states that it does not regulate residents outside Australia. It’s really a big question which broker can be trusted.

Top US-Regulated Forex Brokers

The foreign exchange (forex) market runs 24/7, offers global currency pairs for trading, and is driven by geo-political developments, news, release of macro-economic data and related developments. On one hand, such a global market offers enormous trading opportunities, but on the other, it is challenging to protect individual traders from any financial irregularities. Thus, regulations were introduced through an established framework that ensures that financial intermediaries, like forex brokers, comply with the necessary rules to offer loss protection and controlled risk exposure to individual traders.

All US forex brokers (including the introducing brokers) must be registered with the National Futures Association (NFA), the self-regulating governing body that provides the regulatory framework to ensure transparency, integrity, abiding of regulatory responsibilities, and protection of various market participants. The NFA also offers an online verification system called Background Affiliation Status Information Center (BASIC), where forex brokerage firms can be verified for having necessary regulatory compliance and approval.

This article covers the list of top US-regulated forex brokers, with an aim to provide users an indicative list of regulated brokers (applicable at the time of writing this article). This list does not claim any particular order or ranking, and it is not comprehensive:

  • FOREX.com: Owned by NYSE-listed parent company, GAIN Capital Holdings, Inc. (GCAP), FOREX.com offers many salient features like tight forex spreads, timely trade executions, a mobile trading platform, and numerous technical research indicators in 29 different languages. Forex.com trading offers integration across MetaTrader 4 or FOREXTrader PRO platforms.
  • OANDA: OANDA is another popular broker offering competitive spreads with no commissions and deep market liquidity, along with its OANDA Marketplace which offers loads of features for forex traders such as forex tools, products, advanced analytical tools, forex news, training videos, and MT4 plugins from OANDA and associated partners.
  • TradeKing Forex/Zecco: Zecco was recently taken over by TradeKing and offers tight spreads of 1-2 pips, dynamic trader network, and multiple forex trading platforms with research, analysis tools, and streaming news. Trading applications are compatible across smartphones and tablets.
  • ATC BROKERS: STP Execution, No Dealing Desk, Scalping Allowed, Multiple Brackets Order, along other risk management tools like breakeven capability, custom trailing stop-loss, etc. enable ATC BROKERS to be one of the popular regulated brokers of US.
  • thinkorswim: thinkorswim by TD Ameritrade, Inc. is another popular US-regulated forex broker, offering trading in more than 100 global currency pairs.
  • Interactive Brokers: Another popular broker having global presence, Interactive Brokers claims to have low trading costs with high-level execution, global offerings, high-end trading technology, risk management tools, and trading tutorials.
  • TradersChoiceFX: With over 20 years as a full-service introducing brokerage firm, TradersChoiceFX offers the rebate program by providing a cash bonus for each forex trade one makes. All trades are ultimately executed by their referring partners such as FXCM, FOREX.com, or CitiFX Pro.
  • Beyond those listed above, there are numerous more regulated brokerage firms that traders can explore for trading forex: CMS Forex, FastBrokers, Fortress Capital, Inc., FXDirectDealer, LLC (or FXDD), Lightspeed Trading, TradeStation Securities, Inc., IBFX (part of the TradeStation Group, Inc.), etc.

The Bottom Line:

Regulations are a balancing act. Too little will lead to financial irregularities and inadequate protection to individual traders; too much will lead to a lack of competitiveness in global markets. One major challenge reported with US forex regulators is that leverage provided is limited to 50:1, while global brokers, outside of US regulations purview, provide up to 1000:1 leverage. Traders and investors need to take a cautious approach, ensuring security first.

Disclaimer: Information presented is as available at the time of writing this article, and may change in due course of time. The author does not hold any account with any of the mentioned brokers.

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