Top 7 of Best US Forex Brokers for 2020

Filippo Last Updated: October 2020 11 min read
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Are you searching for the best US forex brokers?

Of course you are.

Luckily, our team of professional forex broker reviewers can take care of your every need.

Let alone the best forex broker in USA, our team realizes it is tough to find any broker which offers a trustworthy, and still value for money proposition when you want to trade forex in the USA. Forex brokers accepting US clients may be few and far between, but we have combined years of experience to narrow your selection down to the top five brokers.

These five are among the best forex brokers USA has to offer.

In fact, they are some of the best forex brokers for residents of any country. These brokers will ensure you feel safe, secure, and still have the ability to prosper in your trading career. They have been selected as the best US forex brokers for a variety of reasons.

Among these reasons are the amount of trading support they offer you, they wide range of markets and instruments that are available for trading, and the very competitive pricing and fee structure offered by these top forex brokers.

Table of contents

Is Forex Trading legal in the USA?

As a forex trader in the US, one of the most important questions you may be asking yourself from the outset surrounds the legality of forex trading in the US. Well, we are pleased to tell you that yes, forex trading is legal in the US. In fact, the US has several top financial regulators providing the best protection to you as a trader. These bodies are FINRA, the SEC, CFTC, and NFA with the latter two being the main regulators when it comes to forex trading and trading in derivatives such as futures. Remember also that CFDs trading in the US is not permitted.

How to trade forex in the USA

The process of getting started with a forex broker in the US is typically similar to that of any other country. With any top broker you will usually be asked for the following information:

  • Proof of identity. A passport is typically best for this purpose.
  • Proof of residence, usually in the form of a bank statement at your current address.

Once these documents are uploaded and verified, a process that takes most forex brokers just a few minutes, you will be free to get started trading forex.

Top 7 Forex Brokers in the USA Listing for 2020

Here’s our list of the best US forex brokers:

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72% of retail investor accounts lose money

1. Forex.com

When it comes to US forex brokers, Forex.com has to be an immediate consideration for opening your forex trading account in the USA. They are CFTC licensed and NFA regulated (#0339826) and provide a selection of flexible and accessible account types with low spreads starting from 0.2 pips, including their Direct Market Access account. This offers some of the most unbeatable spreads among any of the forex trading brokers USA. They also provide extensive trading options in all of the top forex currency pairs, metals including gold and silver, as well as futures trading. When it comes to forex brokers accepting US clients, Forex.com certainly offers among the most comprehensive range of services to their US-based traders.

The Forex.com minimum deposits starting form $1000 on Standard, and Commission accounts, and $25,000 on DMA accounts with demo accounts available. There are also a range of other great benefits such as cash rebates and reduced or no fees for active traders.

76
Rated: Excellent
security 97
cost 52
trading 61
education 100

Platforms: MT4 Dekstop, MT4 Web, Proprietary Desktop Platform, Proprietary Web Platform Regulations: FSA, FCA, CFTC, MIFID-ESMA, IIROC, SFC Minimum Deposit:
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76% of retail CFD accounts lose money

2. IG Markets

With over 40-years in the industry, IG Markets is a true pioneer of the industry, and among the most long standing forex brokers accepting US clients. The broker has evolved continually, keeping the requirements of US-based traders as a top priority. These can be traded on MT4, the mainstay trading platform for top US forex brokers and traders from all around the world as well as being both CFTC licensed, and NFA regulated (#0509630). IG Markets offers one type of account to all traders and this has a minimum deposit requirement of $250.

Accessibility with IG is also excellent, you can engage with a number of top professional charting packages using your desktop, phone, or other smart device. Beyond the USA, IG Markets also featured in our top 10 largest forex brokers Australia. This showcases their global appeal to traders. This appeal is further enhanced by a great cost of trading on more than 90 forex pairs with spreads starting at 0.8 pips.

80
Rated: Excellent
security 98
cost 50
trading 72
education 100

Platforms: Proprietary Web Platform, MAC Platforms Regulations: FSA, MAS, FINMA, FCA, CFTC, MIFID-ESMA, ASIC, FMA, FSCA, DFSA Minimum Deposit:
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74-89% of retail CFD accounts lose money

3. Interactive Brokers

You will very often find Interactive Brokers among our lists of top forex brokers. This is also true when it comes to our choice of top US forex brokers. This is thanks to a number of positive aspects which the longstanding broker uses to attract clients around the world. These include an excellent proprietary trading platform which offers some of the most advanced trading tools available on any market, and a widespread list of products which are available at highly competitive rates. These products include currencies, options, metals, and indices within a list which is ever increasing. IB are a FINRA member and regulated by both the CFTC and NFA (#0392970), as well as the SEC (#8-47257).

They have two account types, you can choose the IBKR Lite, or IBKR Pro both at no minimum deposit though the pro account has a $10 maintenance fee. As mentioned the product range is excellent as is the trading cost with spreads from 0.1 pips on 105 forex pairs. All of these features make IB a top choice particularly for experienced traders.

72
Rated: Excellent
security 95
cost 68
trading 47
education 80

Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC, SEC, CYSEC, Offshore Minimum Deposit:
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73.5% of retail investor accounts lose money

4. Oanda

Oanda is also making progress toward becoming the best forex broker in the USA. The industry leader is making progressive inroads in the US market, and now offers trading in more than 70 diverse forex currency pairs. This is more than enough for you to trade successfully. Added to this, you can also benefit from the powerful educational and research infrastructure Oanda provides. This includes MarketPulse, a selection of news, technical analysis, and research resources which are provided by the in-house Oanda team. This can combine perfectly with our own online investment guides and educational content. Oanda are also well-regulated by both the CFTC, and NFA (#325821) offering traders two account types.

The standard account type is attractive thanks to the fact it has no minimum deposit, while the premium account requires a $2,000 minimum deposit but has benefits like lower spreads and other costs. An unlimited Oanda demo account is also available. The broker also use the much respected MT4 trading platform for trading in all 70 forex pairs and more at a very competitive spread starting from 0 pips. All traders but particularly newer ones, seem to fit well within Oanda.

72
Rated: Excellent
security 97
cost 53
trading 51
education 100

Platforms: Proprietary Desktop Platform, Proprietary Web Platform Regulations: FSA, MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC Minimum Deposit: $0
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Your capital is at risk

5. TD Ameritrade

TD Ameritrade is another top choice when it comes to choosing the very best US forex broker you can. They are well-trusted as a top name in the industry and are one of the most recognizable in the wider US finance sector. They are regulated by the SEC (#801-69469 & #8-23395) as well as the CFTC and are a FINRA member. At TD Ameritrade you will find two distinct account types which are the standard account for real trading, and a margin account for leveraged trading. The minimum deposit here is $50 for standard, and $2,000 for margin. With that said, your standard account will automatically convert to a margin account if the balance exceeds $2000.

TD Ameritrade is a popular choice for all levels of trader, and here you will find two trading platforms. These are their own proprietary platform, and the Thinkorswim trading platform. Trading is offered in 20 forex pairs and the spread starts from a great 0.1 pips.

64
Rated: Medium
security 96
cost 68
trading 23
education 80

Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: CFTC, SEC Minimum Deposit: $100
Open an account
75% of retail investor accounts lose money

6. eToro

Perhaps the most recognizable broker in the world, eToro is now operating in the US too. They are permitted by FinCEN, and the CFTC to offer services to US traders and you will have one account choice available to begin trading with this industry stalwart. The low minimum deposit to get started with such a reputed broker, immediately makes eToro a top choice with a minimum deposit of only $50, or $500 with wire transfer, and one of the most user-friendly trading platforms around with a full demo account also available.

Although it is known as a top forex broker, due to regulatory requirements, within the US at the moment eToro can offer only crypto trading, in which they have a great choice of more than 100 assets. The minimum trading investment in crypto here is $25 after which you can also transfer then to the safe, secure, eToroX crypto wallet brought to you by the broker.

74
Rated: Excellent
security 97
cost 56
trading 55
education 100

Platforms: Proprietary Web Platform Regulations: FCA, CFTC, MIFID-ESMA, ASIC, CYSEC Minimum Deposit: 200
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Trading on Nadex involves risk

7. Nadex

Last but not least on our listing is Nadex. They too are one of the top US forex broker choices you can make. They are well-regulated by the CFTC and are a member of the IG Group which also owns IG Markets, so they are highly trusted. You have one retail account available at Nadex that can be opened with a minimum deposit of $250. A full demo account is also available to try out.

Nadex have a unique fee system which appeals to many traders. Here you pay a fixed $1 fee for every forex position opened and trading takes place through the brokers own proprietary trading platform. Binary options trading is a favorite of many who trade here and the fees on this are also fixed. As you would expect from a top US forex broker, Nadex values trader protection and to that end, also provides negative balance protection.

65
Rated: Medium
security 95
cost 68
trading 27
education 80

Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: CFTC, SEC Minimum Deposit: $100

US trader? Here’s what to look for in a forex broker

As a US forex trader, there are a few key points to be mindful of, mostly related to the regulations that are in place around trading there.

In the US, binary options trading is legal, as are most derivative products including options and futures. There are some exceptions though. CFDs trading is not legal, nor is spread betting.

When it comes to leverage, this is in fact quite generous in the sense it can be as much as 50:1. Things such as negative balance protection are also not mandatory, though some of our top forex brokers listed do still provide this alongside the segregated bank accounts mandated for your funds to provide maximum protection against bankruptcy.

With those points in mind then, here are a few tips to follow that can help ensure your US forex broker choice is the best one possible:

1. Look for forex brokers regulated in the USA

This is a key point. No matter the country you are trading from, you should typically seek a broker regulated there for the best protection. The US is no different. In fact, the US regulation is very difficult to obtain meaning that brokers must be highly trustworthy to be US regulated.

In that case, as a US trader, make sure you choose a broker regulated by the CFTC or NFA if you are trading forex and derivatives, or the SEC if you are interested in stock trading.

2. Are you a beginner? Choose a low-risk broker

Particularly if you are new to the industry, you will want to balance your risk as much as you can. This means choosing a broker with a low minimum deposit so you can get to know the ropes without taking any major risks. Once you find your feet, you can always deposit more.

3. Negative Balance Protection for feeling safer

Negative balance protection is not mandatory under US regulation. With that said, it still provides great protection to forex traders in the unlikely event that your funds went into the negative during periods of high volatility or if you are trading with big leverage. Negative balance protection offered by a few of the US brokers can prevent this from happening.

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

Checking your broker regulation is an important one of the final steps to getting started in US forex trading. In this case, if you want to check your broker regulated by the CFTC or NFA, you can go to the NFA website and search for the company name.

If the broker is SEC regulated, then you can go to the SEC official website or follow the link to Brokercheck (powered by FINRA).

In all cases, you will need the broker business name which can typically be found at the bottom of their homepage.

Is forex trading taxable in the USA?

The clear answer here is that yes, forex trading in the US is taxable. the total capital gains tax to be paid can be calculated as follows:

  • The first 60% of the Capital gain – 15% tax
  • The next 40% of the Capital gain – it depends on the tax bracket you fall in, which is usually 35%

We are not professional tax advisors, thus we strongly suggest you contacting local authorities if you don’t know how to manage this aspect


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