Top USA Brokers

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Best Forex Brokers in United States (USA)

Home » Forex » Best Forex Brokers in United States (USA)

Finding the best forex broker in the USA to get you started trading in the United States is tough. The US Forex market is highly regulated and thus very few Forex brokers are able to offer Forex services to US citizens. As a result, most Forex brokers have a disclaimer saying they do not allow US clients. However, there are some Forex brokers that have met the US regulatory obligations enabling them to operate freely in the US.

As a matter of fact, Forex brokers in the US are viewed as some of the safest due to the high level of regulation. Some experts actually argue that if you want a safe forex broker, you need to investigate if the broker is allowed to operate in the US.

There are two regulatory authorities that regulate the Forex market in the US. These are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). All Forex brokers that wish to operate within the US or offer services to US citizens must be registered with the NFA and CFTC. The two regulatory authorities use the Dodd-Frank Act that was introduced in 2020 to govern Forex trading in the US.

Top Brokers Minimum Deposit Max Leverage Regulations
$100 1:50 CFTC, NFA VISIT BROKER
$50 1:200 IFSC VISIT BROKER
$10 1:1000 FSC, CySEC, FCA, FSP VISIT BROKER

Let’s review some of the top-rated forex trading brokers in USA and compare their features, so you can find the right one for your trades.

Compare the Top Forex Brokers in the US in 2020

Here’s a list of the best forex brokers in USA that you can feel confident trading with in the United States.

IG

The IG Broker was founded in 1974 and headquartered in London, UK. It is one of the best-known Contract for Difference (CFD), Forex, shares, commodities, and cryptocurrencies brokers in the world. It is normally open for trading 24/7, meaning that traders can trade even during the weekends.

It is regulated by an array of regulatory authorities including the Financial Conduct Authority (FCA) in the UK, the Federal Financial Supervisory Authority (BaFin) in Europe, the Swiss Financial Market Supervisory Authority (FINMA) in Switzerland, the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) in the USA, the Australian Securities and Investment Commission (ASIC) in Australia, the Financial Markets Authority (FMA) in New Zealand, Dubai Financial Services Authority (DFS) in the United Arab Emirates (UAE), the Monetary Authority of Singapore (MAS) in Singapore, the Japanese Financial Services Authority (FSA) in Japan, and the Financial Sector Conduct Authority (FSCA) in South Africa.

The broker is run by IG Markets Limited.

Traders can choose to use their web-based platform, Mobile trading platform or MetaTrader 4 platform for their trading activities. It also offers a platform known as the L2 dealer platform where CFD share traders have direct market access (DMA). It also offers the ProRealTime platform for traders to access advanced market analysis tools.

Account Stats

  • Demo Account: Yes
  • Minimum deposits allowed: $0 for bank transfers and $300 for credit/debit cards and PayPal.
  • Base currencies: USD, AUD, EUR, GBP, SGD, and HKD.
  • Minimum lot sizes:01
  • Account types: Standard Account and forex direct account.
  • Payment options: Local Bank Transfers, Paypal and credit/debit cards.
  • Commissions: Commission is charged on shares trading; Euro and UK traders pay 0.1% while US traders pay 2 cents. The minimum commission being $10
  • Volume Commission Rebates: $5-$11 per million traded depending on the tier and account type
  • No Commission Account Spreads From (EUR/USD):6 pips
  • It is highly regulated by top tier regulatory authorities and it’s even listed on the stock exchange market, which makes it a secure broker to trade with.
  • It is open even during the weekends, giving traders the opportunity to maximize their trading returns.
  • It offers cryptocurrencies.
  • Have lucrative commission rebates.
  • Its minimum initial deposit is quite favorable for those with little to invest.
  • Has negative balance protection.
  • It has a High stock Contract for Difference (CFD) fees.
  • It offers relatively low leverage of up to 200:1 compared to other Forex brokers.
  • L2 dealers must have a minimum balance of $2000.
  • Traders pay $40 per month to use the ProRealTime platform.

Bottom line

IG Broker could be a perfect choice for traders looking to invest any amount of money in Forex trading even as little as $1. In addition, it allows traders to take advantage of weekends, which is not common with other brokers. Most Forex brokers are closed over the weekends.

However, if a trader wants to use the ProRealTime platform, it is advisable that he/she be very active so that they can be exempted from the $40 monthly charges.

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Forex.com

Forex.com is owned by Gain Capital Holding, Inc. (GCAP), which is a New York Stock Exchange-listed company. It was started in 2001.

It offers Forex, shares, index and commodity CFDs as well as for cryptocurrencies.

It is regulated by a number of regulatory authorities including the UK Financial Conduct Authority (FCA) in the UK, and the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) in the USA.

Traders can use the MetaTrader 4/5 platform or the ForexTrader Pro platforms, which include the Forex.com web trading platform, and the Forex.com mobile trading platform.

Account Stats

  • Demo Account: Yes
  • Minimum deposits allowed: $100.
  • Base currencies: USD, EUR, GBP, CAD, CHF, AUD, and JPY.
  • Minimum lot sizes:01
  • Account types: Standard Account, Commission Account, and DMA Account.
  • Payment options: Bank Transfer, Credit/Debit cards and PayPal.
  • Commissions: 1% – 0.15% with the minimum commission being $10 for shares and $5 commission per 100K for the commission account.
  • Volume Commission Rebates: None
  • No Commission Account Spreads From (EUR/USD):1 pips
  • Its web-based trading platform has TradingView charts built into it.
  • It’s highly regulated
  • It offers superior trade executions
  • Traders get professional guidance and support from the support team and account managers.
  • The high-volume traders can earn up to 15% cash rebates on trades in addition to other exclusive benefits if they enroll with the Active Trader Program.
  • The spreads are normally higher than most of the international brokers.
  • It does not have negative balance protection.
  • US traders are not allowed to trade cryptocurrencies, though it is allowed for traders from other countries.

Bottom line

Forex.com is probably one of the most trusted Forex brokers and given its reputation for professional guidance, it is a great choice for Forex beginners.

It is however recommended for highly active traders. There is an inactivity charge for accounts that stay inactive for one year.

Nadex

Nadex, better known as the North American Derivatives Exchange is based in Chicago, USA. It offers binary options, Stock, Forex, Indices, and Commodities. It, however, offers three trading methods namely: Binary Options, Call Spreads, and Touch Bracket Contracts.

Contrary to other Forex service providers that operate as brokers, Nadex is an actual exchange regulated in the US. It is regulated by the Commodity Futures Trading Commission (CFTC) in the USA.

Traders who wish to trade on Nadex can choose to either use the Nadex for the Desktop platform or the NadexGO, which is a mobile trading platform.

Account Stats

  • Demo Account: Yes
  • Minimum deposits allowed: $250.
  • Base currencies:
  • Minimum lot sizes: N/A.
  • Account types: individual and business accounts.
  • Payment options: Bank Transfer (ACH), Debit Cards, Wire Transfer and Paper Check for US citizens. Non-US traders can make deposits using International Bank Transfer (Wire), and Debit Card and make withdrawals only through bank wire transfers.
  • Commissions:
  • Volume Commission Rebates: None
  • No Commission Account Spreads From (EUR/USD): N/A
  • It is regulated by the CFTC making it a secure exchange to trade with.
  • It offers a wide array of technical analysis tools.
  • It does not charge any broker commissions.
  • Each contract costs only $1.
  • The Nadex business accounts are not available for non-US citizens.
  • Limited deposit and withdrawal options
  • No leverage trading.

Bottom line

Nadex is a great choice for US traders especially those that to have a different taste. However, it is recommended for experienced traders who know how to trade Binary Options, Call Spreads and Touch Bracket Contracts.

FXChoice

FxChoice broker was established in 2020 and its headquarters is in Belize. It is managed by the FX Choice Limited.

It is registered with the International Financial Services Commission (IFSC), which is a government agency in Belize responsible for regulating financial businesses.

The broker is a true ECN broker with very competitive spreads. The standard account has spread of 0.5 pips while the pro account spreads range from 0 pips. In addition, it only works with Metatrader trading platforms. Therefore a trader can choose to either use the Metatrader 4 or Metatrader 5 platform. The platforms are available for both desktop and mobile devices.

Account Stats

  • Demo Account: Yes
  • Minimum deposits allowed: $100
  • Base currencies: USD, CAD, GBP, AUD, EUR, Gold, Ethereum, Bitcoin Cash, Bitcoin, Litecoin and XRP
  • Minimum lot sizes:01 lots.
  • Account types: Classic Account and Pro Account
  • Payment options: Bank Transfer, Skrill, Neteller, Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple (XRP), Tether, Credit/Debit cards, Fasa Pay, Perfect Money, Paysafecard, Qiwi, AstroPay, VLoad, Poli, SticPay, and airtm.
  • Commissions: $3.5 per notional amount of $100 000 for the pro account holders.
  • Volume Commission Rebates: None
  • No Commission Account Spreads From (EUR/USD):5 pips
  • It has tight spreads that range from 0 pips
  • It offers CFDs in a wide array of assets that include Forex, Cryptocurrencies, Indices and Spot Metals.
  • There is Swift market execution
  • It is a No-Dealing-Desk (NDD) Broker which ensures that there is no conflict of interest.
  • It has competent 24/5 customer support.
  • It offers price improvements on all types of orders.
  • It allows accounts to be opened using cryptocurrencies as the base currency.
  • Offers relatively low leverage of up to 1:200
  • Pro account holders pay a $3.5 commission per $100,000 trade.

Bottom line

FxChoice is a perfect choice for traders who want a purely Metatrader broker that offers true ECN services. It only supports MT4 trading platforms.

It’s a great choice for starters as well as professionals, especially from the USA. However, it’s also worth noting that it does not have regulated by a major jurisdiction.

Interactive Brokers

Interactive Brokers LLC (IB) is a US-based Forex broker. It is managed by the Interactive Brokers Group, Inc. It is one of the largest trading platforms operated in the US. Its trading assets include Forex, stocks, futures, EFPs, bonds, futures options, options, and funds.

Its headquarters is located in Greenwich, Connecticut. However, it has other offices in other cities across the US.

The broker is regulated by the US Securities and Exchange Commission, the New York Stock Exchange, National Futures Association, Chicago Mercantile Exchange, the Financial Industry Regulatory Authority, the Commodity Futures Trading Commission and the Chicago Mercantile Exchange.

It offers a variety of trading platforms, which include the Desktop TWS, IBKR Mobile and the IBKR WebTrader. There are also a number of other platforms that come in handy for Interactive Brokers clients when it comes to managing their accounts; these include the IBot and their Client Portal.

Account Stats

  • Demo Account: Yes (as Free Trial).
  • Minimum deposits allowed: $0
  • Base currencies:
  • Minimum lot sizes:
  • Account types: Client Accounts (the IBKR PRO and the IBKR LITE), Broker Account, and Proprietary Trading Group Account.
  • Payment options: Paychecks, Pension and Social Security Payments for IBKR (non-retirement) accounts, Debit Cards and Bank Deposit Sweep Program.
  • Commissions: for the IBKR Pro account there is a minimum of $10 monthly commission for accounts with $100,000 or less, and a minimum of $20 monthly commission for accounts with $2,000 or less.
  • Volume Commission Rebates: If Interactive Brokers receives a rebate for a trade in a Regulation NMS stock at a liquidity provider, dark pool, or market-maker in the IB ATS, the broker passes the entire rebate to Tiered-commission customers as a venue rebate.
  • Zero Commission Account Spreads From (EUR/USD):1 pips
  • It is regulated by a number of regulators in the US.
  • Traders can choose from a wide variety of assets.
  • It offers strong research and trading tools.
  • It offers over 4000 no-transaction-fee mutual funds.
  • For the IBKR Lite account, there is no inactivity fee

  • Its desktop trading platform is somehow complex.
  • Its account opening process is quite complicated.
  • It only allows deposit and withdrawal via bank transfer methods.

Bottom line

Interactive brokers is one of the best US Forex trading brokers. It is regulated by quite a number of top-tier regulatory authorities and thus considered to be among the safest brokers.

However, the broker has a slightly complex trading platform and it is recommended for the advanced traders.

eToro US

eToro US is a branch of eToro, a world-class Forex broker that has revolutionized copy and social trading around the world, that operates in the USA. It is headquartered in New Jersey.

eToro was established in 2007. It’s regulated by a number of top-tier regulators in the world including the Financial Conduct Authority (FCA) in the UK, and the Cyprus Securities and Exchange Commission (CySEC). Previously, it couldn’t offer its services to US markets mainly due to the changes in the regulation in the country. However, it was finally able to roll out its services in the US in 2020 with its first phase targeting crypto traders. In the US, it is registered with the Financial Crimes Enforcement Network (FinCEN) in addition to various other regulatory authorities in various states.

eToro US is currently licensed to operate in the states of Alaska, Arkansas, Georgia, Iowa, Mississippi, New Mexico, North Dakota, Ohio, South Dakota, Vermont and Washington, and the list keeps on growing.

At the moment, eToro US only offers long cryptocurrency trading. This means traders can only buy cryptocurrencies but not sell on the platform. It currently offers 15 cryptocurrencies for trading. Traders who sign up with the broker can only trade through the proprietary platform.

Account Stats

  • Demo Account: Yes
  • Minimum deposits allowed: $50
  • Base currencies: USD
  • Minimum lot sizes: N/A (Instead, the minimum allowed position size for any single trade is $25)
  • Account types:
  • Payment options: Bank transfer, Credit/Debit card, PayPal, Skrill, Neteller, and WebMoney.
  • Commissions:
  • Volume Commission Rebates: None
  • Zero Commission Account Spreads From (Bitcoin/USD): 75%
  • Offers a portfolio management service, the CopyPortfolios, which allow traders to copy multiple markets based on their investment strategies.
  • The trading platform is simple to use.
  • Offers managed portfolios like the copyFund.
  • It charges a $25 fee for withdrawals.
  • The minimum withdrawal amount is $50.
  • If an account is inactive for 12 months, the broker charges a monthly inactivity fee of $10 from any remaining available balance.
  • eToro’s social trading feature is not yet available for US traders.
  • Only one available trading platform option.
  • No leverage is offered for cryptocurrency trading.

Bottom line

eToro US is a perfect choice for US residents looking for a platform where they can trade cryptocurrencies with ease. Also, the broker has shown interest in expanding its range of assets in the near future to include other assets like forex, commodities, indices and the like.

TradeStation

TradeStation Group, Inc. is a securities and futures brokerage firm headquartered at Plantation, Florida. It is the parent company of TradeStation Securities, Inc., TradeStation Technologies, Inc and TradeStation Crypto, Inc. The broker also has other offices in New York, Texas, Chicago, Richardson, Sydney, Costa Rica, and London.

The broker offers in Exchange Traded Funds (ETFs), Stocks, IPOs, Options, Futures, future options, mutual funds and bonds.

Traders must access the Tradestation trading platforms to trade with TradeStation. These platforms include the TradeStation desktop 10 platform, TradeStation web platform and TradeStation mobile platform.

Account Stats

  • Demo Account: Yes
  • Minimum deposits allowed: $500
  • Base currencies: USD, EUR, GBP, AUD, CAD, HKD, SGD, CHF, and JPY
  • Minimum lot sizes: N/A
  • Account types: Cash Account, Margin Account, Day Trading Account, Individual account, joint account, retirement account, and entity account.
  • Payment options: Smart Transfer, Wire Transfer, Check Deposit, And Electronic Transfer (ACAT)
  • Commissions: None
  • Volume Commission Rebates: None
  • No Commission Account Spreads From (EUR/USD): N/A (Instead charges $1.5 per contract).
  • Simple user-friendly trading platform.
  • The fees charged on stocks and ETFs is relatively low.
  • It also provides its clients with High-quality educational tools.
  • It has a relatively high initial deposit of $500.
  • There is a withdrawal fee of $35, which is quite high.
  • It doesn’t offer Forex Trading.

Bottom line

TradeStation offers some of the best services for Exchange Traded Funds (ETFs), Stocks, IPOs, Options, Futures, future options, mutual funds, and bonds trading in the USA. It also has a simple user-friendly trading platform where traders can easily trade.

However, due to its required minimum deposit of $500 USD, it is recommended for experienced traders; the ones that will be able to manage the funds well to avoid losing everything.

Common US Regulated Forex Broker Questions

Here are the most commonly asked questions about the best American forex brokers regulated in the United States.

Can you trade Forex in the USA?

Yes. You can trade Forex USA.

Though Forex trading is legal in the USA, brokers have to comply with very tough regulations to be allowed to do business there. Therefore, traders have to look for a Forex broker that is registered with the regulatory authorities in the USA. In addition to the Financial Crimes Enforcement Network (FinCEN), each state also has its own regulator that brokers should be registered with.

Therefore, apart from looking for a broker that is registered with a regulatory authority in the US, you have to verify if the broker is authorized to operate in your state.

Is Forex Tax-Free in the USA?

No. US residents that trade Forex is liable to pay tax out of their trading returns.

Normally, there are two different types of currency trading and they are taxed differently in the USA. The first method of trading currencies is by trading on currency futures on regulated commodities exchanges and these are treated as the normal commodities and futures according to IRC section 1256 contracts.

The other method of trading currencies is by trading cash (spot) Forex. Here you are liable to pay tax as stipulated under the IRC section 988 contracts.

You, therefore, have to be careful when trading forex to ensure that you clearly understand the type of broker you are registering with and the type of assets that you trade since they will determine your taxation.

Is Forex Illegal in the US?

No. Forex is NOT illegal in the US.

US residents are free to trade Forex as long as they choose a registered Forex broker. The US has been quite successful in ensuring that almost all the brokers offering Forex services to its residents are registered with their regulatory authorities. This applies to both US-based and non-US-based brokers. They have to be registered with the regulatory authorities in the US to ensure that they comply with all the stipulated regulations.

Also, once you register with a forex broker in the US, you are liable to pay tax out of your trading proceedings.

How to Choose a Forex Broker (as a US trader)?

The choice of a Forex broker is always very important not only to US traders but to any other Forex trader. The choice of the forex trader determines your Forex trading experience.

To choose a Forex trader as a US trader, you need to look for those brokers that allow US residents. Most Forex brokers will have a disclaimer at the bottom of their landing page (on their website), saying that they do not allow US citizens. As a US trader, you should not register with such brokers since you shall have problems depositing or withdrawing your funds from them.

Once you get a broker that allows US citizens, you can then go ahead and look at the services that the broker offers to find out if they match with your needs. You can look at things like the minimum initial deposit required, the deposit and withdrawal options available, eas of trading on the platform, the fees, etc.

Best Forex Broker for Beginners in the US?

As a Forex beginner in the US, you should look for a broker that offers a simple to use trading platform FxChoice, Forex.com and IG Brokers.

Secondly, it is advisable to look for a trader that has a demo account where you can practice trading before committing your hard-earned money. In the demo account, you trade with virtual funds and there is, therefore, no fear of losing funds. Also, you are able to practice how to trade as you also get aquatinted with the broker’s trading platform.

It is also advisable to go for a trader that allows the lowest initial deposit. At times as a beginner, you may not have much to start off with and you need a broker that can allow you to trade with whatever you have.

You should also look for a broker that offers a micro account. In a micro account, you will be able to trade with the lowest lot size while using the highest leverage.

What are the General USA Regulations for Forex?

There are to regulatory authorities that govern Forex trading in the US. These are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). All Forex brokers operating in the US must register with these two institutions regardless of whether the broker is based in the US or not but as long as they want to offer trading services to US citizens.

The NFA offers an online verification system for brokers called Background Affiliation Status Information Center (BASIC) that Forex brokers can use for verification on compliance with the various regulations.

Summary

The US market is normally much regulated and not very many Forex or financial brokers are able to offer their services to the residents. However, the brokers that are registered in the US are termed as some of the safest brokers due to the regulations.

To choose the best broker, you need to first identify your needs. Do you want to trade currency pairs only or do you want to trade other assets as well? What is your financial capability; how much funds can you commit to trading? When are you available for trading?

Once you answer these questions, you shall be able to choose a broker that fits trading needs.

Best Online Brokers

Find and compare the best online trading platforms for every kind of investor

With so many different types of online stock brokers available to investors, it can be tough to choose one that works best for you. That’s why we put these U.S.-based online brokers through a comprehensive review process that included hands-on research to determine the best in the industry.

When we started our 2020 online broker reviews six months ago, no one knew how the world would change. We recognize that we all are living through a particularly volatile time as we deal with this global crisis, and financial markets have also seen unprecedented change, impacting all investors. Our analysis of the online brokerage industry is, “Commission Cuts, Consolidation, and a Coronavirus Crash.”

Our mission has always been to help people make the most informed decisions about how, when and where to invest. Given recent market volatility, and the changes in the online brokerage industry, we are more committed than ever to providing our readers with unbiased and expert reviews of the top investing platforms for investors of all levels, for every kind of market.

Best Online Brokers and Trading Platforms for April 2020:

  • Fidelity Investments: Best Online Broker
  • TD Ameritrade: Best Broker for Beginners
  • tastyworks: Best Broker for Options
  • Interactive Brokers: Best Broker for Advanced Traders
  • TD Ameritrade: Best Broker for Mobile
  • Interactive Brokers: Best Broker for International Trading
  • tastyworks: Best Broker for Low Costs
  • Charles Schwab: Best Broker for ETFs

Best Overall: Fidelity Investments

  • Account Minimum: $0
  • Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trade

Fidelity earned our top spot for the second year running by offering clients a well-rounded package of investing tools and excellent order executions. It has continued to quietly enhance key pieces of its mobile-responsive website while committing itself to lowering the cost of investing for its clients. Fidelity joined in the rush to cut equity and base options commissions to zero in October 2020 but remains devoted to offering top-quality research and education offerings to its clients. The firm also makes it easy for clients to earn interest by sweeping uninvested cash into a money market fund. Fidelity also shares the revenue it generates from its stock loan program, and allows clients to choose which stocks in their portfolios can be loaned out.

Fidelity provides excellent trade executions for investors. On average, over 96% of orders for Fidelity customers are executed at a price better than the national best bid or offer.

Fidelity offers a wealth of research and extensive pre-set and customizable asset screeners.

Your uninvested cash is automatically swept into a money market fund to help contribute to overall portfolio returns.

Some traders and sophisticated investors may have to use Fidelity’s web platform in addition to Active Trader Pro to access all the tools and research they require.

Non-U.S. citizens or residents cannot open an account.

Traders and investors must manually refresh the data when using the website.

Fidelity has a wide offering of securities, but no commodities or options on futures.

Best for Beginners: TD Ameritrade

  • Account Minimum: $0
  • Fees: Free stock, ETF, and per-leg options trading commissions in the U.S., as of October 3rd, 2020. $0.65 per options contract.

Financial markets can be intimidating the first time you try to put your money to work, so it helps to have an online broker that understands that and puts in an effort to help. To determine the best broker for beginners, we focused on the features that help new investors learn as they are starting their investing journey. Brokers were selected based on top-notch educational resources, easy navigation, clear commission and pricing structures, and the overall quality of their portfolio construction tools. We also looked for low minimum account balances, as these can be a barrier for new investors with limited capital. Finally, we put an emphasis on the availability of demo accounts so new investors can practice using the platform and placing trades.

TD Ameritrade, one of the largest online brokers, has made significant efforts to market itself to beginner investors through social media. Work is still being done to further streamline its web and mobile experiences and make them more accessible to new users, but the resources new investors can already access are exceptional. Education is a key component of TD Ameritrade’s offerings. You’ll find expanded learning pathways, ranging from beginner to advanced, to help clients understand everything from basic investing concepts to extremely advanced derivatives strategies. You can open an account and poke around without making a deposit, and take advantage of all the learning opportunities until you’re comfortable. TD Ameritrade wants new investors to become more confident, and to trade additional asset classes as their skills grow.

The education offerings are designed to make novice investors more comfortable.

TD Ameritrade offers in-person education at more than 280 offices as well as multiple training pathways available on its website and mobile apps.

The TD Ameritrade Network offers nine hours of live programming in addition to on-demand content, viewable on mobile devices.

The well-designed mobile apps are intended to give customers a simple one-page experience.

Some investors may have to use multiple platforms to utilize preferred tools.

TD Ameritrade offers one of the widest selections of account types, so new investors may be unsure of which account type to choose when opening an account. More support is needed to ensure customers are starting out with the correct account type.

Investors are paid a tiny rate of interest on uninvested cash (0.01-0.05%) unless they take action to move cash into money market funds.

Best for Options: tastyworks

  • AccountMinimum: $0
  • Fees: $0.00 stock trades, $1.00 to open options trades $0.00 to close

Options trading has become extremely popular with retail investors since the turn of the 21st century. Our best options brokers have a wealth of tools that help you measure and manage risk as you determine which trades to place. They also include valuable education that helps you grow in sophistication as an options trader.

The commission structure for options trades tends to be more complicated than its equivalent for stock trades. Until the commission cuts that swept the industry in the fall of 2020, most brokers charged a fee for each leg of an options spread, plus a commission per contract being traded. The per-leg fees, which made 2- and 4-legged spreads expensive, have been eliminated for the most part. We are seeing some brokers place caps on commissions charged for certain trading scenarios.

Investors with fairly large portfolios can take advantage of portfolio margining at certain brokers, a practice that assesses the total risk inherent in a portfolio that contains stocks and derivatives, and can reduce the size of your margin loan.

Tastyworks officers say that more than 90% of the trades placed by their customers are derivatives, so there are a lot of tools for options and futures traders. Everything is designed to help the trader evaluate volatility and the probability of profit. It’s all about making decisions and taking action. Executions are fast and the costs are low, capping commissions for opening orders for options on equities and futures at $10 per leg. As you build a position from a chart or from a volatility screener, a trade ticket is populated for you. There’s a video viewer embedded so you can keep an eye on the tastytrade network. Though a newcomer to options trading might be initially uncomfortable, those who understand the basic concepts will appreciate the content and features.

All of the tools you’ll need for analyzing and trading derivatives are built into the tastyworks platform.

The charting capabilities are uniquely tuned for the options trader. If you have multiple positions on a particular underlying, you can analyze the risk profiles of the combined position.

There are hours of original video from tastytrade every weekday, offering up-to-the-minute trading ideas, plus a huge library of pre-recorded videos and shows.

Newcomers to trading and investing may be overwhelmed by the platform at first. There’s a learning curve to climb.

There is no fixed income trading (outside of ETFs that contain bonds) for those who want to allocate some of their assets to a more conservative asset class.

Besides profit and loss, any additional portfolio analysis requires setting up a login on a separate site, The Quiet Foundation, which is also part of the tastytrade empire.

Best for Advanced Traders: Interactive Brokers

  • Account Minimum: $0
  • Fees: Maximum $0.005 per share for Pro platform or 1% of trade value, $0 for IBKR Lite

Advanced traders need fast, high quality executions, reliable data, sophisticated order types, and access to the asset classes they want to trade. We also looked for portfolio margining and top-notch portfolio analysis.

Interactive Brokers (IBKR) earns this award due to its wealth of tools for sophisticated investors and its wide pool of assets and markets. The firm makes a point of connecting to as many electronic exchanges as possible. You can trade equities, options, and futures around the world and around the clock. Interactive Brokers’ order execution engine stays on top of changes in market conditions to re-route all or parts of your order to achieve optimal execution, attain price improvement, and maximize any possible rebate. The order routing algorithms seek out a speedy execution and can access hidden institutional order flows (dark pools) to execute large block orders. The wide array of order types include a variety of algorithms as well as conditional orders such as one-cancels-another and one-triggers-another. You can also set up conditional orders based on price, volume, daily P&L, margin cushion, number of shortable shares available, rebate available from the trading venue, and other factors.

IBKR’s order execution engine has what could be the smartest order router in the business.

Interactive Brokers connects clients to 125 markets in 31 countries and enables clients to trade stocks, options, futures, forex, bonds and funds from a single integrated account.

Algorithmic order types include VWAP (volume-weighted average price) and TWAP (time-weighted average price) as well as order types designed to minimize the trader’s impact on the price of a particular stock.

You can only have streaming data on one device at a time. This could be an issue for traders with a multi-device workflow.

The most advanced capabilities are restricted to IBKR Pro clients and trades on that plan are not commission free.

Best for Mobile: TD Ameritrade

  • Account Minimum: $0
  • Fees: Free stock, ETF, and per-leg options trading commissions in the U.S., as of October 3rd, 2020. $0.65 per options contract.

Over the last few years, online brokers have increasingly adopted the mantra “mobile-first.” As more investors and traders use tablets or smartphones as their primary platform, online brokers have made efforts to improve their mobile apps.

Streaming data has made its way to mobile apps along with complex options analysis and trading, advanced charting, and educational offerings. With the availability of computers in our pockets, the way people interact with their trading and investment accounts have forced brokers to offer mobile apps along with their traditional desktop platforms.

TD Ameritrade focused its 2020 development efforts on its most active clients, who are mobile-first – and in many cases, mobile-only. TD Ameritrade’s thinkorswim mobile platform has extensive features for active traders and investors alike. The workflow for options, stocks, and futures is intuitive and powerful. You’ll find lots of bells and whistles that make the mobile app a complete solution for most trading purposes, including streaming real-time data and the ability to trade from charts. The regular mobile platform is almost identical in features to the website, so it’s an easy transition. TD Ameritrade clients can trade all asset classes offered by the firm on the mobile apps.

TD Ameritrade optimized its traditional website for mobile browsers with a dashboard where clients can quickly access account details, balances, balance history, positions, news, and more.

The well-designed mobile apps are intended to give customers a simple one-page experience where they can quickly check in on the markets and their account.

The TD Ameritrade Network offers nine hours of live programming in addition to on-demand content, viewable on mobile devices.

Streaming real-time data on thinkorswim’s mobile app is unlimited.

Customers may have to use multiple platforms to utilize preferred tools. Options-specific tools abound on thinkorswim and its associated mobile app, but fundamental research for equities and fixed income tools are mostly available only on the website.

Over-the-counter (penny stock) trades are subject to a commission of $6.95 per trade.

Clients are paid a tiny rate of interest on uninvested cash (0.01-0.05%) unless they take action to move cash into money market funds.

Best for International Trading: Interactive Brokers

  • Account Minimum: $0
  • Fees: Maximum $0.005 per share for Pro platform or 1% of trade value, $0 for IBKR Lite

For the international trading category, category weightings for the range of offerings were adjusted upwards to measure which broker offered the largest selection of assets across international markets. After that, overall platform functionality and variety of orders types were also measured as these are important to successful trading when undertaking position management in markets that span the globe. These adjustments revealed a clear winner for international trading in the 2020 review.

Interactive Brokers is the best broker for international trading by a significant margin. Interactive Brokers allows investors to access 125 exchanges in 31 countries across the globe. This reach is combined with a massive inventory of assets and 60 different order types to plan your entry and exit from a position. Investors can also fund their account in their domestic currency and IBKR will handle the conversion at market rates when you want to buy assets denominated in a non-domestic currency. And, if all that were not enough, the quality of trading tools available through Traders Workstation (TWS) make it easy to execute multi-layered trades across international borders. Interactive Brokers has won this category two years running, and there is no sign of that changing in the near future.

No broker can match Interactive Brokers in terms of asset inventory or international markets.

If an exchange enables a particular order type, IBKR offers it you. For example, very specific limit-on-close orders on the Tokyo Stock Exchange and pegged-to-primary orders on the London Stock Exchange.

You can trade non-U.S. dollar assets on margin without having to have the local currency in your account.

Most non-U.S. exchanges charge additional data fees that increase your trading costs.

All non-U.S. transactions incur trading commissions, some of which are not completely transparent.

Small or inactive accounts may be subject to maintenance fees or data charges, and interest is not paid on cash unless you have a substantial balance.

Best Forex Brokers USA 2020

Top 3 Forex Brokers USA 2020

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF

Min $250 Deposit

Min $100 Deposit

ASIC, CFTC, FCA, FSA, IIROC, JFSA, NFA

Min $50 Deposit

IG offer traders around the globe over 16,000+ markets including Forex & CFDs. They have a good selection of trading platforms, tools & educational resources. Spreads are tight, commission is low & execution speeds are fast. IG are also regulated in many countries including FCA, ASIC & NFA regulation.

2. FXChoice

Launched in 2020, FXChoice is a Belize regulated online broker accepting clients worldwide including the USA & Canada. They offer flexible leverage, accounts and platforms suitable for all levels of trader.

3. Forex.com

Since 2001, Forex.com has been offering over 200,000 traders across the globe access to trade 300+ global markets with a proven track record of consistently providing exceptional trading conditions with fast execution speeds and competitively low trading costs.

Best Forex Brokers USA

How did we choose our best forex brokers in the USA?

The most important factor for the Trading Brokers team to consider when choosing the best USA forex brokers was that the brokers are regulated to offer forex trading in the USA. Once the brokers regulation had been confirmed, we then researched and analysed the brokers forex trading service in great detail and assigned them with an unbiased broker rating based on our own findings. During this research, we gave great consideration to what we deem to be amongst the most important factors to consider when choosing an online forex trading broker, including:

  • Regulation: The stock broker should be regulated and authorised to offer stock trading in the USA.
  • Forex Trading Platforms: The forex broker must offer a range of the best trading platforms that are user friendly, intuitive and compatible across multiple desktop, web and mobile devices.
  • Forex Trading Instruments: They should have a large selection of minor, major and exotic currency pairs for trading.
  • Spreads: The forex brokers spreads on currency pairs should be competitive and as low as possible.
  • Commission: The commission charged for trading forex currencies should be competitive, the lower the better.
  • Fees: Any additional fees such as accounting, inactivity, etc, should be made clear to traders from the get go.
  • Execution Speeds: The forex broker should have reliable trade execution speeds with minimal slippage.
  • Liquidity Providers: Ideally, the forex broker will have a vast pool of liquidity providers (LPs) in order to deliver consistent execution speeds and tight spreads.
  • Forex Trading Tools: The forex broker should provide a vast array of trading tools for analysing charts, planning and managing trades, trading signals, social trading, etc.
  • Forex Educational Resources: Most new traders will need a selection of educational materials on different trading topics to help them improve their trading skills and knowledge. Training tools can include video tutorials, trading guides, webinars, etc.
  • Forex Account Types: There should be flexible account options to suit different forex trading styles and budgets.
  • Forex Account Funding Options: The best forex brokers should offer a choice of convenient account deposit and withdrawal methods.
  • Customer Support: The forex brokerage should have a prompt, polite and knowledgeable customer support team on hand to answer traders general and technical questions.

USA forex broker regulation

Forex trading is the speculating on the price of one currency against another currency, commonly known within the trading community as a currency pair. Online forex trading has increased in popularity over the years with many online brokerages opening which has given traders a vast choice of brokers who are all competing for their business. This can make it difficult to choose the best forex brokers in the USA although due to strict regulatory requirements, there are not actually that many brokers who offer forex trading to US clients when compared to other countries.

We believe that it is of upmost importance that a forex broker providing services to clients in the USA is authorised and regulated to provide forex trading to US traders. Using a regulated broker helps to give traders peace of mind that they are using a brokerage firm which is subject to strict rules and regulations put in place to protect investors. It is worth mentioning that there are some non-USA forex brokers that still solicit clients located within the USA. There are also USA forex brokers who offer online forex trading services to clients located in some countries outside of the USA. In this instance, it would be a considered a sensible idea to ensure that the broker in question has the relevant regulation within the jurisdiction that they operate from.

Before a forex broker can accept US forex traders as clients, they need to be registered as a Retail Foreign Exchange Dealer (RFED) by the financial regulatory body, the Commodity Futures Trading Commission (CFTC). The broker should also be regulated by the National Futures Association (NFA) as a Futures Commission Merchant (FCM).

Commodity Futures Trading Commission (CFTC)

The U.S. Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974, that regulates the U.S. derivatives markets, which includes futures, swaps, and forex trading. The stated mission of the CFTC is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation and transparency.

The Commodity Exchange Act (CEA) requires certain firms and individuals that conduct business in the derivatives industry to register with the CFTC. CFTC regulations also require, with few exceptions, CFTC registered firms to also be members of the National Futures Association (NFA). The CFTC has delegated registration responsibility to NFA.

All futures professionals that are required to register with the CFTC are only granted registration after a thorough and detailed investigation of their background to determine if they meet the strict standards set forth in the CEA.

National Futures Association (NFA)

The National Futures Association is the self-regulatory organization for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency and OTC derivatives. NFA is headquartered in Chicago and maintains an office in New York City. Designated by the CFTC as a registered futures association, NFA strives every day to safeguard the integrity of the derivatives markets, protect investors and ensure members meet their regulatory responsibilities.

Retail Foreign Exchange Dealer (RFED)

A retail foreign exchange dealer (RFED) is an organization that acts, or offers to act, as a counterparty to an off-exchange non-U.S. currency transaction with a person who is not an eligible contract participant and the transaction is either:

  • a futures contract, an option on a futures contract or an option contract (except options traded on a securities exchange); or
  • offered or entered into, on a leveraged or margined basis, or financed by the offeror, counterparty or person acting in concert with the offeror or counterparty on a similar basis.

Futures Commission Merchant (FCM) Registration

A futures commission merchant (FCM) is an entity that solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts or swaps, and accepts money or other assets from customers to support such orders. If a broker is soliciting or accepting orders to buy or sell retail off-exchange forex contracts and accepting money or assets from retail clients, the brokerage firm needs to be designated as a Forex Dealer Member and comply with requirements outlined on the NFA website.

Verifying the regulation of forex brokers in USA

If a forex broker has been licensed to operate in the United States (USA), they should be provided with a registration number as proof that they are registered. This number is usually located on the brokers website, near the footer where they state who they are regulated by. You should check on the relevant regulators website to validate the current status of the broker registration to ensure that it is valid and up to date. It has been known for some scam brokers to fake regulation, some even going as far to clone another brokers website. When you are looking up the registration number, you should find details of the brokerage firm including their website, contact details and if they have any cases brought against them.

Forex Brokers in USA

USA as a world known and important country in the worldwide economy and financial systems hold a strong position in the Forex industry as well, yet applied some of the strictest demands to their operations. Due to USA regulations and laws, there are many implemented rules which seem to be complicated and limiting trading possibilities. However, there are numerous USA Forex Brokers that in fact bringing a reliable and very competitive trading environment.

  • Some of the governmental restrictions including laws regarding the jurisdictions which have the right to open an account, while most of the platforms are anti-hedging systems, as well as trade with limited leverage that not exceeding 1:50.
  • Moreover, the majority of Non-USA Brokers or those that are not registered with local authorities are not able to offer their services to US residents.

As for the regulation itself, the trading and Forex industry is overseen by the two main authorities while all US Brokers must be registered with the NFA (National Futures Association) or CFTC (Commodity Futures Trading Commission). Those supervising authorities regulate financial service providers or trading Brokers which ensures market integrity, with responsibilities to provide transparency and the highest level of client’s protection. In fact, the CFTC is among the most progressive authorities in terms of publicly that informs the citizens about taken actions and market researches, while the main mission of the organization – to find fraud companies.

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