With so many different US forex brokers to choose from, here are the 6 most recommended US brokers for a non-US trader.
There are specific requirements before brokers based in the United States can offer their services to international clients as the country is highly regulated. For US-based brokers to be suitable for a foreigner to invest with, the intending investor needs to pay attention to certain things.
The first thing to consider is the type of products the broker is offering and it should be relative to what is geographically possible. For instance, the brokerage company may provide the client with access to markets within the US and some parts of Europe while not offering access to markets in Asia like that of China and Japan.
The security level of the broker is another important factor that a potential foreign investor needs to consider. This can be done by checking if the broker's trading platform has a valid SSL certificate as that is an indication that the platform is secure thus ensuring the safety of the investor's access.
Another thing is the pricing systems of the broker. The investor needs to identify the minimum balance allowed in the broker, fees charged per trade, and any inactivity fee. Other additional fees to watch out for are commissions and withdrawal fees. Findings on pricing-related matters allow the investor to choose a broker that is within budget.
It is clear now that the best US brokers for foreigners should offer investors a logical minimum price of an investment, trading platforms with high-quality features, affordable account charges, and excellent customer service. Based on those criteria, here are some of the best US brokers for international investors:
1. Interactive Brokers
Interactive Brokers has a minimum deposit requirement of $10,000 while also giving traders worldwide access as well as the opportunity to fund their account in their domestic currency after which it can then be converted at market rates to trade in the international market.
www.interactivebrokers.com
1:100
$10000
1977
Interactive Brokers is a direct market access broker that provides execution, clearance, settlement, and prime brokerage for customers. Since it was found 41 years ago by Thomas Peterffy, the company has grown internally to become one of the premier securities firms with over $7 billion in equity capital.
First acknowledged as a popular broker for advanced traders, Interactive Brokers launched a second tier of service called IBKR Lite for more casual investors in 2019.
The IBKR Lite provides services on over 125 market destinations worldwide and gives direct access (online) trade execution and clearing services, both to institutional and professional traders for a wide variety of traded products including stocks, options, futures, forex, fixed income, and funds worldwide. Interactive Brokers Group and its affiliates execute over 859,000 trades per day.
Headquartered in Greenwich, Connecticut, Interactive Brokers has over 1,400 employees in the USA, Switzerland, Canada, Hong Kong, UK, Australia, Hungary, Russia, Japan, India, China, and Estonia companies. IBKR is regulated by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and is registered in the New York Stoch Exchange (NYSE).
Interactive Brokers offers a wide range of product-centered tools like the OptionTrader and Probability Lab for simplified single and complex multi-leg option trading; FXTrader for forex trading, Mutual Fund/ETF Replicator for helping traders find a lower cost on ETF alternatives, also fixed-income screeners for corporate and agency bonds. Overall, trading with Interactive Brokers would be provided with the most useful and updated tools to maximize trading and investing goals.
As a popular and regulated broker in the US, Interactive Brokers has won some awards. Recently, they were awarded by the Barrons as the 2019 Best Online Broker, which is categorized as the best broker for mobile, international, and frequent traders. Besides, they also won an award as Top Performing Broker by the Preqin Service Providers, and Best Overall Broker by Investopedia (Best for Low Costs, Best for International Trading, Best for Options Trading, Best for Day Trading, and Best for Penny Stocks). The awards are not only achieved during 2019. Since 2005, Interactive Brokers has won lots of awards regarding its best services for clients.
To optimize clients' trading speed and efficiency, Interactive Brokers provides some powerful suites of trading platforms. Below is the list:
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Client Portal
A one-stop destination to check quotes and place trades, see account balances, Profit and Loss, as well as key performance metrics, funding, and reporting. -
Desktop TWS
A flagship platform designed for active traders and investors who trade multiple products and require power and flexibility. Opening an account in Interactive Brokers and using this platform allows traders to utilize the most advanced algorithms and trading tools, as well as a library of tools and asset-based trading layouts for optimum customization. -
IBKR TWS for Mobile
The IBKR TWS for Mobile is made for traders who want to easily trade and monitor their IBKR account on-the-go from either iOS or Android device (tablet or smartphone). -
IBoT
IBoT is a robot for finding information and placing orders using clients' own words. IBot is available on TWS for Desktop, IBKR Mobile, and Client Portal. -
IBKR WebTrader
IBKR WebTrader is made for traders and investors who prefer a simplified interface. -
IBKR APIs or IBKR Pro
This trading platform is provided especially for traders and investors who want to write their trading software or automated trading programs; third-party software users.
Overall, Interactive Brokers has always been a great choice for those who want to find out a credible and regulated broker for trading. Offering lots of trading platforms, Interactive Brokers has committed to provide their best services for both novices and professionals, since it is suited to every clients' needs.
2. Charles Schwab International
Charles Schwab broker focuses on stock and ETF trading while at the same time making a wide range of tools and services available to investors which they can choose from. The account minimum for foreign investors is $2,500 while there is also access to various platforms like mobile web platforms and a desktop platform.
3. TD Ameritrade
This broker also offers stock and ETF trading with a minimum deposit requirement of $0. It is one of the biggest online brokers with excellent global customer support that provides detailed outlines of the firm's services. TD Ameritrade provides educational materials to aid investors in their trading activities. Investors have different choices of trading platforms such as the basic website, mobile apps, and "thinkorswim" which are directed specifically at investors who are focused on derivatives.
4. Zacks Trade
Zacks Trade gives investors access to the forex market while also offering three trading platforms for free along with twenty free research reports. It also has a connection with Interactive Brokers which gives it a presence in over 200 countries and allows more than 90 international exchanges.
5. Firstrade
This firm makes commission-free trades available for ETF trades, options, and most stocks. Firstrade also offers multiple trading platforms to go along with free research and educational seminars for novice traders every two weeks. There is a mobile application that is available for both iOS and Android phones containing useful parts like a sophisticated dashboard and research features. Firstrade is open to investors from about 60 countries without the requirement of a tax ID number or a Social Security number.
6. LightSpeed
LightSpeed is suitable for foreign investors that are frequent traders and even though the minimum deposit requirement is high compared to other brokers (ranges from $10,000 to $25,000), the cost of trading is low. Although this broker lacks educational materials and planning tools for inexperienced traders, there are excellent trading tools that are quite beneficial to professional traders.
These are the options for international investors who are interested in US-based brokers to trade assets or financial securities. They only need to identify a suitable broker, register, and start trading. Whatever the choice, one of the most crucial things before making any deposit is to try out their demo accounts. Ignoring the step of trading in a demo account would increase your risk unnecessarily.