Best brokers to trade forex
Make sure to choose a forex broker whose domicile is in a country with a well-developed financial regulation.
Top-3 forex bonuses
Fxdailyreport.Com
The first and most important factor to consider when choosing a forex broker to trade with is security. Some of the factors to consider to ensure your money is safe includes;
You want your trading capital to be safely deposited and handled with a forex broker that is overseen by a relevant financial authority. In the US, find a broker that is regulated by the national futures association (NFA): the NFA is the main regulatory agency responsible for regulating forex trading. It oversees the regulation and supervision of all fx brokers in the US. The broker should also be registered with the US commodity futures trading commission (CFTC) as a retail foreign exchange dealer and futures commission merchant.
Check the broker’s regulatory body on their website before doing any other thing. Working with a regulated broker also ensures that your withdrawal or deposit request fast and hassle-free.
Recommended US forex brokers regulated by NFA and CFTC
FOREX.Com
Make sure to choose a forex broker whose domicile is in a country with a well-developed financial regulation. This legal structure can help you recover funds if an issue arises. So, ensure that you check the domicile of the company even if the firm looks reputable. Otherwise, choosing an online broker based in a poorly regulated country may not be in your best interest. Trying to exert your legal rights in a foreign jurisdiction can prove a daunting task as there is no regulatory oversight in the background to support your effort.
Always check the broker’s financial security before hiring as you want to choose one with great financial backing. Choose a online forex broker that is well funded or has a trusted owner or parent company. You can find this information on the broker’s official website on tabs like “about us” or “press releases.” you can also check on the regulatory body’s website.
- Transparent and low commission structures
The costs associated with forex trading can be hard to analyze. Also, they can impact a trader’s returns significantly over the long term, especially if your trading strategy calls for frequent trading. Therefore, it is crucial that you deal with an fx trader with a transparent and low commission structure.
However, it is important to note that while a trader with low marginal costs may save you some money in the long term, more expensive traders tend to offer better customer service among other helpful services, including educational materials, trading tools, and market analysis.
- Suitable and reliable trading platform
Another important consideration to make is the trading platform that the potential forex broker works with. This is because the trading platform will be your interface with the market. Therefore, it needs to be intuitive and easy to use. It should also have high speeds to allow for quick execution and enable you to react promptly to any market changes.
Always make sure that your broker offers you a platform that best suits your needs. For instance, if you are always on the move, you should look for a broker whose platform has a mobile app to allow you to manage your trades.
Finally, always choose a broker with top-notch customer service. Since forex trading takes place 24 hours a day, you need to find a broker who offers customer service 24/7. Check to see whether their support is offered as one on one or through automated responses. We highly recommend a broker that offers one on one support as opposed to automated since they may not address your needs adequately.
Call the brokers directly to see who will pick your call promptly and the quality of customer service they will offer. If you are dissatisfied with the level of services offered by a particular broker, move on to the next and settle for the one who will offer quality and satisfactory service.
As a trader, it is crucial that you vet as many forex brokers as possible before arriving at a final decision. This will help you choose a broker that offers exceptional services that match your expectations.
Best forex brokers
Luke jacobi
Contributor, benzinga
Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.Com
Forex trading is arguably one of the easiest financial markets to begin trading in. To get started, you just need to open and fund an account with a regulated online broker. Choosing the best forex broker to trade forex through does require some initial research to find the one most suitable for your trading needs and experience level.
Best forex brokers right now:
- Best overall forex broker: FOREX.Com
- Best for beginner traders: etoro
- Best for non-US traders: HYCM
- Best for commodities: avatrade
- Best for intermediate traders: pepperstone
- Best for advanced forex traders: interactive brokers
- Best for mobile traders: plus500
- Best forex platform: IG markets
Table of contents [ hide ]
The best forex brokers
Benzinga’s picks for the best forex brokers in 6 key categories appear below along with details about each broker and a screenshot of their trading platforms.
Account minimum
Pairs offered
Minimum trade size
Spread
Commisions
1. Best overall forex broker: FOREX.Com
FOREX.Com is a subsidiary of GAIN capital holdings (NYSE: GCAP) and ranks as the best overall forex broker.
You will only need $50 to open up an account to start trading up to 80 currency pairs on FOREX.Com’s advanced trading platforms, which include metatrader for non-U.S. Residents.
This broker accepts U.S. Clients and is regulated in the U.S. By the commodities futures trading commission (CFTC) and the national futures association (NFA). FOREX.Com also has oversight from regulators in 6 major world jurisdictions through its subsidiaries.
You can check out benzinga’s FOREX.Com review for more information about this excellent broker.
Account minimum
Pairs offered
Minimum trade size
Spread
Commisions
2. Best for beginner traders: etoro
Etoro specializes in social trading, which is ideal for beginners since you can follow the trades of expert traders with a proven track record. In addition to its world-class social trading network, etoro has excellent educational resources for forex beginners. Etoro’s intuitive multi-asset trading and social trading platforms and apps can be used by anyone immediately. Unfortunately, etoro does not support the metatrader 4 and 5 (MT4 and MT5) trading platforms.
The broker lets you trade over 2,000 different assets and has a minimum deposit of $50. Etoro currently accepts clients from most U.S. States where it is registered with the U.S. Financial crimes enforcement network (fincen) as a money services business, instead of with the NFA and CFTC as an online broker. The company is also regulated in australia, the U.K. And cyprus in the EU.
Account minimum
Pairs offered
Minimum trade size
Spread
Commisions
3. Best for non-US traders: HYCM
Highly regulated HYCM offers stocks, forex, indices, cryptocurrencies, commodities and etfs. The company also offers excellent trading conditions and great liquidity.
HYCM uses metatrader 4 to trade the markets and adds in technical analysis, flexible trading systems and expert advisors (eas).
You’ll also encounter low spreads and low-cost trading, which includes 3 spread levels: fixed spreads, variable spreads and raw spreads:
- You can access up to 500:1 leverage through HYCM, depending on where you live and which currency pair you’re trading.
- Account minimums with HYCM may vary depending on your base currency and the type of account you open. You should have at least $100 to $200 ready to go before you open an account.
- You can customize your account levels with varying fee structures to fit your risk tolerance and trade frequency.
- HYCM even offers swap-free accounts that do not accrue interest for each of its fee types to allow islamic investors to trade freely without worrying about being in conflict with religious laws.
You’ll also find a range of education and research tools for endless education opportunities through HYCM.
Account minimum
Pairs offered
Minimum trade size
Spread
Commisions
4. Best for commodities: avatrade
Avatrade, one of the most secure brokers in the industry, carries 7 regulations across 6 continents (europe, australia, japan, british virgin islands, UAE and south africa). You’ll be pleasantly surprised by its asset availability, leading platforms and generous trading conditions (you can leverage your positions up to 400:1).
Avatrade offers an exceptionally user-oriented perspective, including a 24-hour multilingual support desk for a broad range of instruments, platforms and services for every level of trader. Instruments include:
- Forex
- Stocks
- Commodities
- Cryptocurrencies
- Indices
You’ll find a range of automated trading platforms, including desktop, tablet, mobile and web-based trading with metatrader 4, metatrader 5, its proprietary webtrader, avaoptions and the award-winning avatradego. Client funds are held in segregated accounts for increased security and fast profits withdrawal.
Avatrade’s innovative technology and cutting-edge trading features also include 1-on-1 training sessions with a dedicated account manager.
Commissions
Account minimum
5. Best for intermediate traders: pepperstone
U.K.-based pepperstone gets our vote for best broker for intermediate traders. It has regulatory oversight in the U.K. And australia, although it does not currently accept U.S. Clients. The broker lets you trade in 61 major, minor and exotic currency pairs and requires a minimum deposit of $200. Pepperstone provides support for the metatrader 4 and 5 and ctrader platforms.
In addition to forex, pepperstone offers trading in cryptocurrencies, energy, metals, commodities and stock index contracts for difference (cfds). Customer balances are maintained in segregated accounts for safety in the australian national bank and barclays U.K.
Pricing
Account minimum
6. Best for advanced forex traders: interactive brokers
Interactive brokers offers some of the lowest costs in the business, including a $0 commission on U.S.-listed stocks and exchange-traded funds (etfs). Because of interactive’s world-class brokerage services in 33 countries that cover 134 markets worldwide, the company has oversight from most of the world’s largest financial regulators, including the U.S. SEC, CFTC and NFA. Interactive also submits to regulatory oversight in the U.K., australia and canada, and it has agencies in japan, hong kong, india and luxembourg.
Interactive brokers offers trading in 23 different currencies and their pairs, and the broker requires a $10,000 minimum margin deposit that is applied to commissions for the first 8 months, followed by a $2,000 minimum starting on the 9th month.
Minimum commissions apply, as well as maintenance fees and charges for inactivity, so interactive brokers would be best for advanced, active and well-funded professional traders. Interactive’s proprietary trading platforms, including its client portal, desktop trader workstation (TWS) and mobile application have been rated as some of the best in the business.
7. Best for mobile traders: plus500
U.K.- based plus500 has oversight from the FCA and is a leading provider of CFD trading on over 1,000 tradable assets including forex currency pairs, stock shares, cryptocurrencies, etfs, options and indices. The company keeps your money in segregated accounts but does not offer services to U.S.-based clients.
Plus500 offers trading in 70 currency pairs featuring competitive spreads on its forex cfds and leverage of up to 300:1. The intuitive interface featured on both the plus500 desktop and mobile trading platforms can be accessed immediately by novices and professionals, which makes plus500 our pick for mobile traders.
Commissions
Account minimum
8. Best forex platform: IG markets
IG markets gives clients access to trade cfds in more than 17,000 different markets including forex, shares, indices, commodities, bonds, etfs, options and short-term interest rate cfds. You can trade up to 80 different currency pairs through IG and the broker requires a $250 minimum deposit.
IG accepts U.S.-based clients due to oversight from the CFTC and NFA. IG holds your money in segregated accounts under trustee arrangements for added security. In addition to its proprietary trading platform, IG offers support for 3rd-party forex platforms such as metatrader 4 and prorealtime. It also allows application programming interface (API) trading.
Forex market explained
In the forex market, traders agree to exchange 1 currency for another to make a transaction in that currency pair at a particular level known as the exchange rate. Like stock prices, this exchange rate fluctuates based on supply and demand factors, as well as on the forex market’s overall expectations of future events.
Forex traders can make money on a currency transaction in 2 ways. First, if they buy or go long a currency and it goes up in value versus the sold currency, then they earn a profit. Second, if they sell or go short a currency and it goes down versus the bought currency, then they also profit.
Many currency pairs quoted in the forex market show substantial volatility or fluctuations, which can result in gains or losses for traders. The daily candlestick chart below shows changes in the exchange rate of the EUR/USD currency pair, which is the european union’s euro quoted in terms of the U.S. Dollar from november 2018 until april 2020.
Risk and reward in forex trading
Rewards are generated in forex trading when you take a long or short position in a currency pair that subsequently appreciates in value. The risk in doing a forex transaction is when the market doesn’t perform as expected once you have done a forex trade.
Many brokers allow traders to magnify the gains or losses they take on a position via the use of leverage. Leverage is typically expressed as the ratio of the size of a position you can control by placing one unit of base currency on deposit as margin. Hence, a 500:1 leverage ratio would mean that you can control a $500 position with a $1 margin deposit.
Furthermore, most successful traders have a minimum risk/reward ratio for a trade before they will consider taking it, such as 1:2 or 1:3. For example, if you think the chances of a trade making 20 pips is around the same as the chances of it losing 10 pips, then your risk/reward ratio of that trade is 1:2. If that meets your risk/reward ratio criteria, then you might consider that trade worthy of executing.
Choose your broker wisely
Since your forex broker will be your primary trading partner, you want to choose one carefully to make sure they are reputable and will fit your requirements as a trader. Open a demo account with an online broker you’re thinking of using to see whether it is a good fit. Demo account trading can also help prevent potentially costly errors that might arise from you being unfamiliar with the broker’s trading platform.
Methodology
These top brokers were chosen for this review for various reasons depending on the specific category in which we felt they excelled. Baseline requirements included the strength of their regulatory environment, their generally good overall reputation with clients earned over an extended period and a substantial number of currency pairs available for trading.
Top 7 of best US forex brokers for 2021
Top rated:
Are you searching for the best US forex brokers?
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 2021
Here’s our list of the best US forex brokers:
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.
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.
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.
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.
Fxdailyreport.Com
The first and most important factor to consider when choosing a forex broker to trade with is security. Some of the factors to consider to ensure your money is safe includes;
You want your trading capital to be safely deposited and handled with a forex broker that is overseen by a relevant financial authority. In the US, find a broker that is regulated by the national futures association (NFA): the NFA is the main regulatory agency responsible for regulating forex trading. It oversees the regulation and supervision of all fx brokers in the US. The broker should also be registered with the US commodity futures trading commission (CFTC) as a retail foreign exchange dealer and futures commission merchant.
Check the broker’s regulatory body on their website before doing any other thing. Working with a regulated broker also ensures that your withdrawal or deposit request fast and hassle-free.
Recommended US forex brokers regulated by NFA and CFTC
FOREX.Com
Make sure to choose a forex broker whose domicile is in a country with a well-developed financial regulation. This legal structure can help you recover funds if an issue arises. So, ensure that you check the domicile of the company even if the firm looks reputable. Otherwise, choosing an online broker based in a poorly regulated country may not be in your best interest. Trying to exert your legal rights in a foreign jurisdiction can prove a daunting task as there is no regulatory oversight in the background to support your effort.
Always check the broker’s financial security before hiring as you want to choose one with great financial backing. Choose a online forex broker that is well funded or has a trusted owner or parent company. You can find this information on the broker’s official website on tabs like “about us” or “press releases.” you can also check on the regulatory body’s website.
- Transparent and low commission structures
The costs associated with forex trading can be hard to analyze. Also, they can impact a trader’s returns significantly over the long term, especially if your trading strategy calls for frequent trading. Therefore, it is crucial that you deal with an fx trader with a transparent and low commission structure.
However, it is important to note that while a trader with low marginal costs may save you some money in the long term, more expensive traders tend to offer better customer service among other helpful services, including educational materials, trading tools, and market analysis.
- Suitable and reliable trading platform
Another important consideration to make is the trading platform that the potential forex broker works with. This is because the trading platform will be your interface with the market. Therefore, it needs to be intuitive and easy to use. It should also have high speeds to allow for quick execution and enable you to react promptly to any market changes.
Always make sure that your broker offers you a platform that best suits your needs. For instance, if you are always on the move, you should look for a broker whose platform has a mobile app to allow you to manage your trades.
Finally, always choose a broker with top-notch customer service. Since forex trading takes place 24 hours a day, you need to find a broker who offers customer service 24/7. Check to see whether their support is offered as one on one or through automated responses. We highly recommend a broker that offers one on one support as opposed to automated since they may not address your needs adequately.
Call the brokers directly to see who will pick your call promptly and the quality of customer service they will offer. If you are dissatisfied with the level of services offered by a particular broker, move on to the next and settle for the one who will offer quality and satisfactory service.
As a trader, it is crucial that you vet as many forex brokers as possible before arriving at a final decision. This will help you choose a broker that offers exceptional services that match your expectations.
Best forex brokers
Luke jacobi
Contributor, benzinga
Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.Com
Forex trading is arguably one of the easiest financial markets to begin trading in. To get started, you just need to open and fund an account with a regulated online broker. Choosing the best forex broker to trade forex through does require some initial research to find the one most suitable for your trading needs and experience level.
Best forex brokers right now:
- Best overall forex broker: FOREX.Com
- Best for beginner traders: etoro
- Best for non-US traders: HYCM
- Best for commodities: avatrade
- Best for intermediate traders: pepperstone
- Best for advanced forex traders: interactive brokers
- Best for mobile traders: plus500
- Best forex platform: IG markets
Table of contents [ hide ]
The best forex brokers
Benzinga’s picks for the best forex brokers in 6 key categories appear below along with details about each broker and a screenshot of their trading platforms.
Account minimum
Pairs offered
Minimum trade size
Spread
Commisions
1. Best overall forex broker: FOREX.Com
FOREX.Com is a subsidiary of GAIN capital holdings (NYSE: GCAP) and ranks as the best overall forex broker.
You will only need $50 to open up an account to start trading up to 80 currency pairs on FOREX.Com’s advanced trading platforms, which include metatrader for non-U.S. Residents.
This broker accepts U.S. Clients and is regulated in the U.S. By the commodities futures trading commission (CFTC) and the national futures association (NFA). FOREX.Com also has oversight from regulators in 6 major world jurisdictions through its subsidiaries.
You can check out benzinga’s FOREX.Com review for more information about this excellent broker.
Account minimum
Pairs offered
Minimum trade size
Spread
Commisions
2. Best for beginner traders: etoro
Etoro specializes in social trading, which is ideal for beginners since you can follow the trades of expert traders with a proven track record. In addition to its world-class social trading network, etoro has excellent educational resources for forex beginners. Etoro’s intuitive multi-asset trading and social trading platforms and apps can be used by anyone immediately. Unfortunately, etoro does not support the metatrader 4 and 5 (MT4 and MT5) trading platforms.
The broker lets you trade over 2,000 different assets and has a minimum deposit of $50. Etoro currently accepts clients from most U.S. States where it is registered with the U.S. Financial crimes enforcement network (fincen) as a money services business, instead of with the NFA and CFTC as an online broker. The company is also regulated in australia, the U.K. And cyprus in the EU.
Account minimum
Pairs offered
Minimum trade size
Spread
Commisions
3. Best for non-US traders: HYCM
Highly regulated HYCM offers stocks, forex, indices, cryptocurrencies, commodities and etfs. The company also offers excellent trading conditions and great liquidity.
HYCM uses metatrader 4 to trade the markets and adds in technical analysis, flexible trading systems and expert advisors (eas).
You’ll also encounter low spreads and low-cost trading, which includes 3 spread levels: fixed spreads, variable spreads and raw spreads:
- You can access up to 500:1 leverage through HYCM, depending on where you live and which currency pair you’re trading.
- Account minimums with HYCM may vary depending on your base currency and the type of account you open. You should have at least $100 to $200 ready to go before you open an account.
- You can customize your account levels with varying fee structures to fit your risk tolerance and trade frequency.
- HYCM even offers swap-free accounts that do not accrue interest for each of its fee types to allow islamic investors to trade freely without worrying about being in conflict with religious laws.
You’ll also find a range of education and research tools for endless education opportunities through HYCM.
Account minimum
Pairs offered
Minimum trade size
Spread
Commisions
4. Best for commodities: avatrade
Avatrade, one of the most secure brokers in the industry, carries 7 regulations across 6 continents (europe, australia, japan, british virgin islands, UAE and south africa). You’ll be pleasantly surprised by its asset availability, leading platforms and generous trading conditions (you can leverage your positions up to 400:1).
Avatrade offers an exceptionally user-oriented perspective, including a 24-hour multilingual support desk for a broad range of instruments, platforms and services for every level of trader. Instruments include:
- Forex
- Stocks
- Commodities
- Cryptocurrencies
- Indices
You’ll find a range of automated trading platforms, including desktop, tablet, mobile and web-based trading with metatrader 4, metatrader 5, its proprietary webtrader, avaoptions and the award-winning avatradego. Client funds are held in segregated accounts for increased security and fast profits withdrawal.
Avatrade’s innovative technology and cutting-edge trading features also include 1-on-1 training sessions with a dedicated account manager.
Commissions
Account minimum
5. Best for intermediate traders: pepperstone
U.K.-based pepperstone gets our vote for best broker for intermediate traders. It has regulatory oversight in the U.K. And australia, although it does not currently accept U.S. Clients. The broker lets you trade in 61 major, minor and exotic currency pairs and requires a minimum deposit of $200. Pepperstone provides support for the metatrader 4 and 5 and ctrader platforms.
In addition to forex, pepperstone offers trading in cryptocurrencies, energy, metals, commodities and stock index contracts for difference (cfds). Customer balances are maintained in segregated accounts for safety in the australian national bank and barclays U.K.
Pricing
Account minimum
6. Best for advanced forex traders: interactive brokers
Interactive brokers offers some of the lowest costs in the business, including a $0 commission on U.S.-listed stocks and exchange-traded funds (etfs). Because of interactive’s world-class brokerage services in 33 countries that cover 134 markets worldwide, the company has oversight from most of the world’s largest financial regulators, including the U.S. SEC, CFTC and NFA. Interactive also submits to regulatory oversight in the U.K., australia and canada, and it has agencies in japan, hong kong, india and luxembourg.
Interactive brokers offers trading in 23 different currencies and their pairs, and the broker requires a $10,000 minimum margin deposit that is applied to commissions for the first 8 months, followed by a $2,000 minimum starting on the 9th month.
Minimum commissions apply, as well as maintenance fees and charges for inactivity, so interactive brokers would be best for advanced, active and well-funded professional traders. Interactive’s proprietary trading platforms, including its client portal, desktop trader workstation (TWS) and mobile application have been rated as some of the best in the business.
7. Best for mobile traders: plus500
U.K.- based plus500 has oversight from the FCA and is a leading provider of CFD trading on over 1,000 tradable assets including forex currency pairs, stock shares, cryptocurrencies, etfs, options and indices. The company keeps your money in segregated accounts but does not offer services to U.S.-based clients.
Plus500 offers trading in 70 currency pairs featuring competitive spreads on its forex cfds and leverage of up to 300:1. The intuitive interface featured on both the plus500 desktop and mobile trading platforms can be accessed immediately by novices and professionals, which makes plus500 our pick for mobile traders.
Commissions
Account minimum
8. Best forex platform: IG markets
IG markets gives clients access to trade cfds in more than 17,000 different markets including forex, shares, indices, commodities, bonds, etfs, options and short-term interest rate cfds. You can trade up to 80 different currency pairs through IG and the broker requires a $250 minimum deposit.
IG accepts U.S.-based clients due to oversight from the CFTC and NFA. IG holds your money in segregated accounts under trustee arrangements for added security. In addition to its proprietary trading platform, IG offers support for 3rd-party forex platforms such as metatrader 4 and prorealtime. It also allows application programming interface (API) trading.
Forex market explained
In the forex market, traders agree to exchange 1 currency for another to make a transaction in that currency pair at a particular level known as the exchange rate. Like stock prices, this exchange rate fluctuates based on supply and demand factors, as well as on the forex market’s overall expectations of future events.
Forex traders can make money on a currency transaction in 2 ways. First, if they buy or go long a currency and it goes up in value versus the sold currency, then they earn a profit. Second, if they sell or go short a currency and it goes down versus the bought currency, then they also profit.
Many currency pairs quoted in the forex market show substantial volatility or fluctuations, which can result in gains or losses for traders. The daily candlestick chart below shows changes in the exchange rate of the EUR/USD currency pair, which is the european union’s euro quoted in terms of the U.S. Dollar from november 2018 until april 2020.
Risk and reward in forex trading
Rewards are generated in forex trading when you take a long or short position in a currency pair that subsequently appreciates in value. The risk in doing a forex transaction is when the market doesn’t perform as expected once you have done a forex trade.
Many brokers allow traders to magnify the gains or losses they take on a position via the use of leverage. Leverage is typically expressed as the ratio of the size of a position you can control by placing one unit of base currency on deposit as margin. Hence, a 500:1 leverage ratio would mean that you can control a $500 position with a $1 margin deposit.
Furthermore, most successful traders have a minimum risk/reward ratio for a trade before they will consider taking it, such as 1:2 or 1:3. For example, if you think the chances of a trade making 20 pips is around the same as the chances of it losing 10 pips, then your risk/reward ratio of that trade is 1:2. If that meets your risk/reward ratio criteria, then you might consider that trade worthy of executing.
Choose your broker wisely
Since your forex broker will be your primary trading partner, you want to choose one carefully to make sure they are reputable and will fit your requirements as a trader. Open a demo account with an online broker you’re thinking of using to see whether it is a good fit. Demo account trading can also help prevent potentially costly errors that might arise from you being unfamiliar with the broker’s trading platform.
Methodology
These top brokers were chosen for this review for various reasons depending on the specific category in which we felt they excelled. Baseline requirements included the strength of their regulatory environment, their generally good overall reputation with clients earned over an extended period and a substantial number of currency pairs available for trading.
Top 7 of best US forex brokers for 2021
Top rated:
Are you searching for the best US forex brokers?
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 2021
Here’s our list of the best US forex brokers:
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.
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.
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.
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.
Best online brokers for international trading
A key component of a balanced portfolio is exposure to international markets
We publish unbiased product reviews; our opinions are our own and are not influenced by payment we receive from our advertising partners. Learn more about how we review products and read our advertiser disclosure for how we make money.
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 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.
A key component of a balanced portfolio is exposure to international markets. Exchange-traded funds (etfs) focused on a particular geographical area can be added to any portfolio, but the investor has little control over the stocks included in the fund. Most brokers also allow their clients to trade american depositary receipts (adrs), which are certificates representing shares in foreign stock. Adrs are traded on U.S. Exchanges.
Best online brokers for international trading:
- Interactive brokers: best online broker for international trading and best online broker for non-U.S. Investors
Interactive brokers: best broker for international trading and best broker for non-U.S. Investors
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- 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 both the overall best broker for international trading and the best online broker for non-U.S. Investors.
Interactive brokers (IBKR) easily took the best overall with its direct access to 135 global exchanges in 31 countries. this allows traders to trade around the clock using more than 60 different order types to manage their position entry and exit points. many of the features aimed at international trading are built into IBKR’s downloadable traders workstation (TWS) platform, meaning that you’ll end up using it as a primary tool even if you don’t consider yourself a trader. this can be a challenge at first because of the plethora of tools and customizations available through TWS. Learning the platform takes some time, but the learning curve is shorter if you are only using basic functions.
In addition to access to markets across the world, interactive brokers also offers a massive inventory of assets, including european debt issues and 115 currency pairs. the only nominal knock on interactive brokers in this sense is that fractional share trading only works for U.S. Listed stocks, but that is true of every other broker reviewed as well. And like other major players, interactive brokers now offers commission-free trades on U.S. Stocks and etfs, helping to make it our consensus pick for international trading two years in a row.
It is worth mentioning the runners up to interactive brokers in the overall category, as they are still decent options for investors who may find IBKR's reach and platform — admittedly geared for traders — a bit too intimidating. Fidelity came in second to IBKR with the ability to trade in 25 countries using 16 different currencies. schwab came in third with its more limited direct access to 12 foreign markets in their domestic currency. as you can see, there is a significant gap between interactive brokers and the overall runners up.
This year we also evaluated online brokers in terms of which one best fits the needs of non-U.S. Investors, as our audience is increasingly global. Here again, interactive brokers’ reach was the deciding factor. Investors with interactive brokers can fund their accounts with many different base currencies and then convert at market rates to purchase assets in other markets. so, no matter which market you are going to and from, you’ll be able to make the investment without holding separate accounts or arranging conversion.
If you are a non-U.S. Trader or sophisticated investor, you will get much more out of IBKR. The features of IBKR as a trading platform are covered at length in our review, but all that power opens new opportunities when combined with a global outlook. In addition to the incredible tool set in TWS, interactive brokers’ asset inventory makes it easier to set up complex, multi-layered trades without using proxies.
The idea of an individual trader placing a multi-market bet including stocks, currencies, options, and commodity futures used to be quite intimidating. Back in the 90s when george soros’ quantum fund broke the bank of england, it was actually a team of traders shorting the pound against the german mark, going long on UK stocks, and purchasing german bonds in advance of underperformance in german stocks. with the market reach and asset choice through interactive brokers, you can now do the same style of trade from your desktop and monitor it in real-time. Traders can also queue up conditional orders and essentially trade 24 hours as markets close and open around the globe.
Interactive brokers is unparalleled in its market reach and asset variety.
TWS was our strongest overall trading platform with powerful tools and a high level of customization.
The direct access to exchanges worldwide allows for 24-hour trading.
You can fund your account in many different base currencies and the conversion at market rates for non-native currency transactions is directly supported through the platform.
Interactive brokers offers the lowest margin interest of all the brokers we reviewed.
Taking full advantage of the international trading tools requires investors to use TWS, which can be daunting for non-traders.
Interactive brokers still uses a fee-based pricing structure for trades, albeit a modest one.
The most profitable trading hours in the forex market
Best forex trading hours
The foreign exchange (forex) market spread and the profit which a forex trader makes depends on when he chooses to trade. Hence forex traders, especially those who are new to forex trading, would like to find out the best forex trading hours. Experts claim that the optimal time for trading forex is when the market activity is highest, since the difference between the bid and ask prices, the trading spreads will reduce to the lowest level. During this period, the forex brokers make less money, and the forex traders can profit for themselves. But is this true only in theory?
Largest forex exchanges.
The largest forex exchanges in the world are tokyo, london, sydney, and new york exchange. Forex traders need to remember when the working hours of these exchanges and when more than one exchange is open. If the multiple exchanges are open, the trading volume increases, adding to the volatility and increase of the currency prices. Forex traders can benefit from these factors. Though investors usually do not like volatile markets, high volatility results in more opportunities to profit in forex.
Forex markets timings worldwide
There are 15 independent exchanges worldwide, which are open every week from monday till friday. The traders hours for each exchange are different, yet for most forex traders, the important timings in eastern standard time are listed below (forex market session times):
London 3 am to 12 pm – noon.
What time london forex market open? As we can see, it is 7:00 GMT (3:00 AM EST). Below is table with all details.
Though each exchange is independent, the same currencies are traded on all the exchanges. Hence when two or more exchanges are open, there is a major increase in the volume of the purchase and sale of currencies by traders active on these exchanges. The bid and ask rates for currencies in one forex exchange will affect the rates in all other open exchanges, making the market more volatile and decreasing the spread. The windows for the major exchanges are
3 am to 4 am when the london, tokyo exchanges are open
7 pm to 2 am when sydney, tokyo forex exchanges are both open
8 am to noon, when london, new york exchanges are open
See major forex market hours – forex trading session times table:
| Time zone forex.In.Rs | EDT (april- october) | EST (october- april) | GMT |
|---|---|---|---|
| sydney open | 6:00 PM | 4:00 PM | 10:00 PM |
| sydney close | 3:00 AM | 1:00 AM | 7:00 AM |
| tokyo open | 7:00 PM | 6:00 PM | 11:00 PM |
| tokyo close | 4:00 AM | 3:00 AM | 8:00 AM |
| london open | 3:00 AM | 3:00 AM | 7:00 AM |
| london close | 12:00 PM | 12:00 PM | 4:00 PM |
| new york open | 8:00 AM | 8:00 AM | 12:00 PM |
| new york close | 5:00 PM | 5:00 PM | 9:00 PM |
Best times for trading in forex
The most profitable trading hours in the forex market are usually in periods of high volatility for trend trading strategies such as periods when european, and USA market trading sessions overlap.
For most forex traders, the best time to trade is the four hour period when both the london and new york exchanges are open from 8 am till 12 noon (EST). More than half the forex trades take place at these exchanges. On the other hand, from 5 pm to 6 pm (EST), most of the trading occurs at the sydney, singapore exchanges, which have a far lower trading volume. The expected trading volume assumes that there will be no news affecting the forex market. If there is a military or political crisis, there may be an increase in trading volume, volatility even during the timings when the market is usually slow, so forex traders can profit.
Many traders who are new to foreign exchange (forex) trading spend a lot of time researching. Unlike the stock markets, which are open only during business hours, the forex market is open all the time so that many first time traders will work long hours. However, this can use up the trader’s savings and also leave the trader mentally drained. Hence the trader should understand the timings of the forex markets worldwide, activity and plan their schedule accordingly to get the best results working reasonable hours. The best times to trade the forex markets are discussed below.
Unlike stock markets, the forex market worldwide is linked and is open from sunday 5 pm EST to friday at 5 pm. If two or more of the four major forex markets are open, the trading volumes will increase, and the currency pairs are more likely to fluctuate. If only one market is open, the spread for the currency pairs is limited to 30 pips. However, when two or more markets are open, the forex spread may be more than 70 pips, especially when major news related to the economy is released.
Research about best times for trading forex by dailyfx.Com
experts from dailyfx.Com have analyzed over twelve million trades conducted by a large foreign exchange(forex) trader to find trends. It was noticed that the profit or loss of these traders depended largely on the day’s time. Most of these traders are called range traders since their profit depends on market conditions to a large extent. The strategies for range trading involve buying low and selling high. Many traders make a loss because they are choosing the wrong time for trading. Hence many traders would like to find out when is the best time of day to trade forex? So that they can plan their schedule accordingly and make a profit.
Https://www.Dailyfx.Com/forex/technical/article/special_report/2011/12/12/when_is_the_best_time_of_day_to_trade_forex.Html
Thousands of forex trades were analyzed to find trends in the forex traders’ profits for five of the most popular currency pairs. While there are some daily fluctuations are observed, it is found that the trends are fairly stable. It is found that the traders are most likely to make a profit when forex/currency rates are less volatile. This is usually during the asian, late US, or early european forex market trading sessions. While the range trading strategy is effective when the forex rate fluctuates less, the trader will lose more volatility.
The best forex session to trade
After a lot of research, experts have noticed that for making a profit, european currencies should be traded during the period when major markets are closed, using a strategy for range trading. This corresponds to trading between 7 pm to 11 am UK time. Hence the trade filters should be set accordingly. The same strategy is not effective when the euro currencies are volatile during peak trading hours. Making a profit range trading in asia-pacific currencies is more difficult since the periods when currency rates are highly volatile and less volatile are less clearly defined than european currencies.
The best arbitrage opportunity is evidenced on fridays (learn more about arbitrage in our article)when selling USD and buying EUR at 00:00 and selling EUR and buying USD at 03:00 the same day.
Overlaps in timings for forex markets
Since the price range in forex markets is higher when more than one market is open, there are more opportunities.
What time is the forex market most active?
The most active trading hours are from 8 a.M. EST to noon EST time when both the new york and london forex markets are open 70% of the forex trades, especially in the US dollar, the euro takes place during this period, and traders can take advantage of the volatility to make a profit. The sydney and tokyo forex markets, london and tokyo market timings also overlap for two and one hours, respectively. However, the forex trading volumes are lower since these are smaller markets, and the overlap duration is also smaller.
How news affects the forex market
Major news can increase the trade volumes during a period when few traders are active. If the news is drastically different from what was predicted, the currency value can fluctuate greatly in a few seconds. New economy-related information affects currency rates worldwide; however, only a few news types are relevant for forex traders. This news is interest rate related policy decisions, trade deficits, consumer consumption and confidence, CPI data, meetings of the central bank, GDP data, unemployment rates, and retail trade-related information.
Conclusion
Forex traders should consider the overlap in market timings, economic news while deciding their trading schedule so that they have enough time to rest and other activities. Reading science research papers about this topic, there is no 100% rule about the best trading time for the forex market but based on dailyfx research; the most profitable hours are low volatility hours.
Trade with the no. 1 broker in the US for forex trading*
Why are traders choosing FOREX.Com?
No. 1 FX broker in the US*
We have served US traders for over 18 years.
Trade 80+ FX pairs, and gold & silver
Global opportunities 24/5 with flexible trade sizes.
EUR/USD as low as 0.2
Trade your way with flexible pricing options including spread only, spread + fixed commission, or STP pro.
*based on client assets per the 2019 monthly retail forex obligation reports published by the CFTC
Financial strength you can depend on
Your FOREX.Com account gives you access to our full suite of downloadable, web, and mobile apps.
Get 20 free, easy to install eas and custom indicators when you open a metatrader live or demo account.
* based on active metatrader servers per broker, apr 2019.
Reward yourself with our active trader program
- Save up to 18% with cash rebates as high as $9 per million traded
- Interest paid up to 1.5% on your average daily available margin balance
- Get guidance and priority support from your dedicated market strategist
- No bank fees for wires
- Access to exclusive events and product previews
Open an account in as little as 5 minutes
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So, let's see, what we have: fxdailyreport.Com when trading currencies in international markets, it is crucial that you choose a reliable forex broker to succeed. Make sure to choose a forex broker that combines value at best brokers to trade forex
Contents of the article
- Top-3 forex bonuses
- Fxdailyreport.Com
- Recommended US forex brokers regulated by NFA and...
- Best forex brokers
- Best forex brokers right now:
- The best forex brokers
- Account minimum
- Pairs offered
- Minimum trade size
- Spread
- Commisions
- 1. Best overall forex broker: FOREX.Com
- 2. Best for beginner traders: etoro
- 3. Best for non-US traders: HYCM
- 4. Best for commodities: avatrade
- 5. Best for intermediate traders: pepperstone
- 6. Best for advanced forex traders: interactive...
- 7. Best for mobile traders: plus500
- 8. Best forex platform: IG markets
- Forex market explained
- Risk and reward in forex trading
- Choose your broker wisely
- Methodology
- Top 7 of best US forex brokers for 2021
- Is forex trading legal in the USA?
- How to trade forex in the USA
- Top 7 forex brokers in the USA listing for 2021
- Fxdailyreport.Com
- Recommended US forex brokers regulated by NFA and...
- Best forex brokers
- Best forex brokers right now:
- The best forex brokers
- Account minimum
- Pairs offered
- Minimum trade size
- Spread
- Commisions
- 1. Best overall forex broker: FOREX.Com
- 2. Best for beginner traders: etoro
- 3. Best for non-US traders: HYCM
- 4. Best for commodities: avatrade
- 5. Best for intermediate traders: pepperstone
- 6. Best for advanced forex traders: interactive...
- 7. Best for mobile traders: plus500
- 8. Best forex platform: IG markets
- Forex market explained
- Risk and reward in forex trading
- Choose your broker wisely
- Methodology
- Top 7 of best US forex brokers for 2021
- Is forex trading legal in the USA?
- How to trade forex in the USA
- Top 7 forex brokers in the USA listing for 2021
- Best online brokers for international trading
- A key component of a balanced portfolio is...
- Best online brokers for international trading:
- Interactive brokers: best broker for...
- The most profitable trading hours in the forex...
- Trade with the no. 1 broker in the US for forex...
- Why are traders choosing FOREX.Com?
- Financial strength you can depend on
- Reward yourself with our active trader program
- Open an account in as little as 5 minutes
- Ready to learn about forex?
- New trader?
- Have some experience?
- Want to go deep on strategy?
- Not sure where to start?
