These are the best US forex brokers that could provide top solution when experienced traders and beginners need security of funds as well as reliable execution.
The United States has become the cornerstone of forex industry for dozens of years. The country is known for its rigorous forex regulation, as well as its online trading innovations. Favorable financial market environment and tight competition have enabled US forex brokers to invent many sophisticated tools in order to attract traders and investors alike.
Experienced traders from all around the world know that when you need a forex broker that provides security of funds as well as reliable execution, then US forex brokers might be your best option. But which US forex brokers are the best for you? Here is a brief look at the top 7 US forex brokers.
1. Forex.com (Gain Capital)
Forex.com is owned by GAIN Capital Holdings, Inc, an online trading operator that has been listed in NYSE since 2010. Gain Capital is known as the largest forex broker in the world, providing services for clients from over 140 countries worldwide through Forex.com, City Index, and other well-known brokerage brand.
Forex.com has developed their own proprietary platform called FOREXTrader PRO that could be operated through desktop, web and mobile application. They also provide MetaTrader with dedicated support and integrated trading tools exclusive to Forex.com clients. You could trade over 80 currency pairs at FOREX.com with spread as low as 0.1 pip. See Forex.com review to learn more about their offerings.
FOREX, also known as FOREX.com, is one of the global market leaders in the financial industry. Established in 2001, FOREX is a part of Gain Capital Holdings specifically meant for FX & CFD trading on powerful trading platforms and the popular MetaTrader 4.
Similar to its parent company, FOREX has been licensed by various financial watchdogs, including the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) from the US, the Financial Conduct Authority (FCA) from the UK, the Investment Industry Regulatory Organisation from Canada, as well as the Financial Services Agency from Japan.
For traders in South East Asia and the Middle East area, FOREX has been operating under the regulation of the Cayman Islands Monetary Authority.
Quality execution on every trade, transparency, and competitive pricing are some of the most optimized services in FOREX.com. As per Q3 2019, the broker's total assets reached $1.288 billion and the total customer equity amounted up to $849.8 million.
FOREX presents its clients with the best freedom to trade in 300+ global markets including 80+ FX pairs, 220+ shares, indices, commodities, and cryptocurrencies. Spreads on each asset are displayed live on FOREX.com's official website, with EUR/USD having a spread as low as 0.8 pips.
For the trading platform, FOREX provides two major options: its in-house platform and MetaTrader 4. Both types are available on various devices and can be accessed as a web-based platform and mobile app. Furthermore, FOREX's proprietary platform is furnished with advanced charting tools like 70+ technical indicators, a host of time intervals, multiple chart types, 50+ drawing tools, and customization features.
Trading in FOREX.com is provided with various trading conditions that accommodate the needs of multiple types of traders. Apart from the services, FOREX also provides guidance and supports in the forms of real-time trade signals and analysis tools from Autochartist and Recognia. There are also trained market strategists to work with on developing a trading plan, as well as market analysis to keep clients Stay informed with real-time market insights and actionable trade ideas from FOREX's research team.
Account funding and withdrawal are enabled via bank transfer. However, there are no further details on the minimum amount of each process. FOREX also does not seem to present other options for payment methods like credit cards or even e-payment.
Generally, FOREX is a reliable FX and CFD broker based on its regulations and long-standing history since 2001. Clients can trade in either FOREX's platform or MetaTrader 4 with competitive spread and pricing. Still, FOREX is one of the top-tiers in the brokerage industry that adheres to strict regulations of prestigious financial regulators.
Some of its trading conditions may not suitable for retail traders with barely enough experience or small capitals. Despite it all, FOREX.com hosts one of the most accomplished material packages when it comes to financial trading.
OANDA is founded in 1995. It started as currency rate information provider, then grew into one of the most trusted global forex broker with multiple licenses under its belt. OANDA is not only regulated by US-based CFTC, but also other tier-1 jurisdictions including UK and Japan.
OANDA provides dual trading platform. Its clients could choose between its exclusive trading suite, fxTrade, and MetaTrader. OANDA applied a little higher spread than Forex.com at around 1 pip. However, they facilitate trading at extremely low 0.001 nano lot which is not available in other leading US forex brokers. See OANDA review to learn more about their offerings.
Traders looking for brokers with accurate precision, OANDA can be an option. That is because OANDA is a broker that provides quotes with 5-digit accuracy and active price movements that follow market developments. Order execution speed is also faster in this broker.
It provides benefits for novice traders, as they can trade with smaller volumes using the calculation system based on currency value, unlike other brokers adopting the lot system.
Founded in 1996, OANDA was built by Dr. Michael Stumm who is a lecturer in Computer Engineering at the University of Toronto, Canada, along with his colleague, Dr. Richard Olsen of The Olsen Ltd., which is one of the leading econometric research institutes. They have a head office in San Francisco, United States.
OANDA branch offices can be found everywhere. Some of these offices are located in the United Kingdom, Singapore, Japan, and Canada. With this number of offices spread, OANDA has increasingly attracted the attention of clients worldwide.
OANDA's company is registered under several well-known jurisdictions in financial trading. They are regulated by CFTC and NFA in the US, FCA in the UK, ASIC in Australia, and many others. Traders do not need to worry anymore about security when trading in OANDA. However, these advantages make trading rules at OANDA more stringent compared to other brokers.
For example, OANDA only allows maximum leverage of 1:20, because the rules in the US and Japan do not allow leverage above that. Besides, the registration procedure is more complex due to various additional requirements that are not submitted by other forex brokers. On top of that, hedging is not allowed in one trading account as the client must open an additional account to hedge.
Nevertheless, OANDA is known for being a leading broker with many advantages offered. OANDA faces increased market risk during periods of price volatility, such as economic and political news announcements. When market spreads increase or decrease, their pricing engine widens or narrows spreads accordingly. That way, traders can get the latest conditions from price movements in the market more quickly.
Prices move very fast in the market. Especially when news releases have a large impact on market volatility. This condition is often exploited by brokers to take advantage of clients with Requotes. However, traders do not need to worry about additional costs when trading with OANDA.
The company never withdraws Requotes so traders can get maximum profit. When traders are unavailable to monitor open positions, they can set take profit orders to lock in profits and Stop Loss orders to help protect against further losses.
As an experienced and well-known online forex broker, OANDA is committed to maintain an efficient trading environment that reduces latency and provid tools to help clients manage the degree of acceptable slippage.
With a fast & reliable trading platform by OANDA, clients' trades are executed in 0.012 seconds. This suits traders who choose brokers based on execution speed.
Because of this exceptional execution service, it is not surprising that OANDA won many awards, including the winner of the world's Best Retail FX Platform at the prestigious e-FX awards. The broker is also voted number 1 for Consistency of filling trades at quoted prices, Execution speed, and Reliability of platforms.
There is no minimum deposit or minimum balance required to open an OANDA account. Deposit and withdrawal can be done easily. OANDA provides a variety of payment method facilities, including Paypal, Wire Transfer, Credit Card, and Debit. Traders can adjust it to the region where they live.
OANDA provides more than 100 trading instruments, including 71 currency pairs, 16 indices, 8 commodities (Brent Crude Oil, Copper, Corn, Natural Gas, Soybeans, Sugar, etc.), 6 Bonds, and 23 Metals.
The fxTrade and MetaTrader platform are available at OANDA. These platforms can be used for Desktop and Mobile. Another plus is they have an OANDA Technical Analysis that exists in collaboration with a technical analysis provider called Autochartist.
With these platforms, clients can monitor price movements easier and automatically recognize patterns created on charts, as well as receive alerts when the awaited patterns appear. Access to this technology can be enjoyed free of charge.
In conclusion, OANDA is an ideal broker for traders in need of fast execution backed by many years of experience. The company is also a good alternative for those looking for a well-regulated broker with flexible trading and deposit conditions.
3. Interactive Brokers
Interactive Brokers offers online trading in multiple markets. Its clients could choose between forex trading, stock trading, as well as mutual funds, ETFs, futures, options and bonds. Needless to say, Interactive Brokers is that one broker you should choose when you want to arrange full-fledged US portfolio without going into complicated registration procedures with various brokerage companies.
Interactive Brokers recently-developed IBKR Lite enable traders to open an account with USD0 minimum deposit requirement, free commission, and low spread. However, they have inactivity fees that might bite any traders with low balances. Its website is also quite unfriendly for beginners. See Interactive Brokers review to learn more about their offerings.
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:
- 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 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.
4. TD Ameritrade
TD Ameritrade offers a variety of markets as well, including forex, stocks, futures, options, ETF, mutual funds, fixed-income assets, and cryptocurrency. This is one of the best US forex brokers for beginners due to its huge collection of educational content and easy-to-use research tools.
You could open an account with TD Ameritrade with any amount of initial funds you wish. The company does not require a specific amount of initial cash deposit. But TD Ameritrade charges USD6.95 fee per trade and average spread around 1 pip. It is quite expensive compared to other companies in this list.
This brand is actually also owned by TD Ameritrade. It provides online trading with cheaper fees (free commission for forex trading), as well as more user-friendly trading platform and websites. Clients could access more than 100 currency pairs along with other assets that is also offered by TD Ameritrade with minimum deposit of USD25,000.
6. ATC Brokers
ATC Brokers is established in 2005 and still comparatively less well-known outside the US. It is founded in 2005 under "STP Execution" label. Clients could open a standard account with a minimum deposit of USD5000 and enjoy average pips of 0.6. Due to the high minimum initial deposit requirement, ATC Brokers might not be a good choice for beginners. Furthermore, ATC Brokers still has a lot to do to improve its educational content. See ATC Brokers review to learn more about their offerings.
7. Ally Invest
Ally Invest specifically caters to beginners. Clients could choose between self-directed trading and managed portfolios (robo advisor). Hands-on traders could open an account with any amount of funds and take advantage of the free-commission policy. Otherwise, investors could open a managed portfolio with USD100. Ally Invest is also famous for its no-nonsense option trading services, so experienced traders could take advantage of this too. See Ally Invest review to learn more about their offerings.
So, which one of the top 10 US forex brokers would you choose? Before registering yourself, contact them first to make sure that they could accept clients from your country. Due to the strict law enforcement by Uncle Sam, US forex brokers might not be able to provide services for residents of specific countries.