Best US Forex Brokers 2022

filippo ucchino Filippo Ucchino calendar Last Updated: October 2022 timer 11 Min Read

At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.

The brokers featured in this ranking are among the best in the United States of America.

To decide which ones to include, we considered the following factors:

  • A regular RFED license;
  • The number of forex pairs;
  • Forex commissions charged to US traders;
  • Investment methods;
  • Additional broker features for US clients.
Table of Content

Round-up

  1. Forex.com: best US forex broker overall
  2. IG Markets: best for margin forex trading
  3. Interactive Brokers: for professional forex traders
  4. Oanda: best US forex broker for beginners
  5. Nadex: best forex options trading broker
  6. TD Ameritrade: most flexible forex broker

WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money

Review

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

1. Forex.com

  • Forex.com is a US broker based in New Jersey (Bedminster), it is RFED licensed by the CFTC, and it’s an NFA member with regulation number 0339826.
  • US clients can trade over 80 forex pairs across three MT4 account types including Standard, Commission, and DMA accounts.
  • Spreads start from 1 pip on the standard account, but they can be lowered down to 0.2 pips for Commission and DMA accounts, which are suited for scalpers and professional traders respectively.
  • For professional US clients, Forex.com offers an Active Trader Program, which allows you to get cash rebates of up to 15%.
  • The leverage offered to US clients is 1:50 on forex.

Visit Forex.com
73% of retail CFD accounts lose money

2. IG Markets

  • IG Markets is based in Chicago, Illinois. It is an RFED forex broker with over 40 years of experience and is licensed by the CFTC and NFA with number 0509630.
  • IG Markets allows forex trading on a number of trading platforms, including MT4, L2 Dealer, and ProRealTime for advanced charting features.
  • IG Markets requires a minimum deposit of $250 in the US.
  • IG Markets allows US traders to trade a total of over 90 forex pairs with spreads as low as 0.8 pips.
  • As with other brokers, the maximum forex leverage is 1:50 in the United States.
  • IG Markets also offers spread rebates to US traders of up to 15% depending on the volume traded. To qualify you must trade at least 100 forex lots per month.

Visit IG Markets
(76% of retail investor accounts lose money)

3. Interactive Brokers

  • Interactive Brokers is a major online broker born in the United States and has an office in Connecticut, in Greenwich.
  • Forex spreads are unmarked, and IB charges a $2 to $4 commission based on monthly volume traded.
  • The broker offers a large number of forex pairs, with over 105 tradable.
  • IB offers trading on its versatile IBKR platform, which supports various trading strategies.
  • U.S. traders can also install EAs, while more experienced traders will have access to various APIs such as the FIX API.

Visit Interactive Brokers
74-89% of retail CFD accounts lose money

4. Oanda

  • Oanda is a forex broker that operates legally in the USA under an RFED license provided by the CFTC and NFA (0325821)
  • U.S. traders can choose to pay only a mark-up on the spread (from 1 pip) or pay an additional fixed fee of $5 per lot through the Core account.
  • With Oanda USA, traders can trade over 70 forex pairs through MT4.
  • Oanda also offers a section with real-time news called MarketPulse.
  • Oanda allows US traders to open orders with small amounts of money thanks to their forex lot policy.

Visit Oanda
73.5% of retail CFD accounts lose money

5. Nadex

  • Nadex is a US broker that specializes in options trading.
  • With Nadex US traders can trade several types of options including: Call, Knock-Outs, and binary options.
  • U.S. traders only have access to 11 tradable forex pairs.
  • Options trading offered by Nadex charges a fixed commission of $1 per contract for opening and closing each position.
  • The minimum deposit with Nadex is $250.

Visit Nadex

Trading on Nadex involves risk

6. TD Ameritrade

  • TD Ameritrade, in addition to the stock market, also offers forex trading.
  • TD Ameritrade is based in Red Bank, New Jersey, and is a FINRA/SIPC member.
  • The platform offered is thinkorswim, with which US forex traders can trade up to 70 forex pairs.
  • The forex spread has a mark-up that starts at 1 pip.
  • The minimum deposit with TD Ameritrade is $50, but to open an account that allows the use of margin, you must deposit at least $2,000

Visit TD Ameritrade
(74-89% of retail CFD accounts lose money)

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. 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.

What US traders should look for in a US 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. CFD trading is not legal, nor is spread betting.

When it comes to leverage, this is 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, 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 is 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’s business name which can typically be found at the bottom of their homepage.

Is forex trading taxable in the USA?

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.


About The Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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