How to Shortlist the Best US Forex Brokers?
Due to the strict regulation, you don’t find many reputed brokers provide service in the USA. Still, there are few international brokers that also work as US forex brokers. However, you need an ample amount of research to find those USA brokers.
So, on what basis should you conduct your criteria?
We will discuss them here. Besides, you will also get enlightened about the US forex markets, which may help you understand the USA’s forex trading.
Without further ado, let’s get into the details. Before that, let’s start with a myth.
Can you Trade Forex legally in the USA?
It is a common question asked by the new traders in the USA. The strict regulations almost discourage the traders from investing in the FX. However, forex trading is popular worldwide. So, US traders are also getting the attraction.
Forex trading got legalized for retail clients in the early 2000s in the USA. Since then, everyone can trade legally via US regulated forex brokers.
US Forex Brokers Market Situation
The US Dollar represents the largest currency in the world, which also denotes many demanding commodities, which include oil, gas, and more. On top of that, the USA holds the biggest equity market compared to the countries in the world.
Because of the demand and other factors, the US Dollar became the main currency. Besides, maximum major pairs have the US Dollar with them. For instance, EUR/USD, GBP/USD, and more. On the other hand, some pairs don’t contain US Dollars, which are defined as a cross. EUR/JPY, CAD/JPY are examples of the cross. Forex trading in US doesn’t limit the trading to major currencies with USD. US traders can trade any type of pairs that are available in the market.
Best Forex Brokers in USA
- 200+ tradable assets
- Choose between 4 trading platforms
- Competitive spread pricing on raw account
- Mobile Trading: Available
- ECN: Available
- Currencies: 45+
- Axi Mobile Trading: Available
- Currencies: 80+
- Web Trading: Available
USA Forex Regulation Authority
The retail forex market became available in the early 2000s. However, the US financial market had its own regulation long before the retail forex arrived. The USA worked with different authorities to regulate the forex market.
National Futures Association (NFA) and the Commodity Futures and Trading Commission (CFTC) are the two regulations that control the US forex brokers. The two regulations make all the regulated forex brokers in USA follow the guidelines, which gives an extra layer of safety for the traders. However, brokers also get the benefits too.
The Verification of the US Regulated Forex Brokers
If any concern arises about the US regulated forex brokers, you can always check the brokers regulatory status online. For that, you will need to visit the NFA website. But you will need the broker’s license number, which is available on the website.
Once you retrieved the license number, you will need to put that on the NFA website. If the license number exists on the NFA site, the broker is regulated.
However, unregulated brokers are illegal in the USA. So, all the US regulated forex brokers are legal. Still, it is better to cross-check the regulatory status for personal satisfaction.
Criteria to Shortlist the Best US Forex Brokers
Choosing the right forex trading platforms USA can keep you ahead in the forex trading world. Among the hundreds of brokers in the USA, how can you find the best forex broker in USA? Well, we did an in-depth analysis of the facts you should check about a broker. However, the following facts might be useful for the best forex brokers in USA for beginners to sort out the best forex brokers in USA.
Checkout the Regulatory Status
Whenever you want to compare a broker with other available brokers, the regulation is the first thing you should check. You can easily verify the regulatory status through the method we have provided earlier.
Traders should have the right to trade anything they want locally and globally. So, many of the forex brokers for us clients offer global asset classes. On the other hand, some USA brokers may not offer international assets. So, you should check out the global asset offerings.
Types of Account
To grab all the traders, forex trading in US usually provides a variety of account types. However, you have to choose one account type depending on your investment.
Usually, you will find three types of basic accounts for all, micro account, mini and standard. It has been seen that; some don’t offer all three account types. Instead, they offer only a specific type of account, such as a standard. But if you are looking for the best forex brokers for US clients, especially for the new traders, you must sign up with the top us forex brokers that offer both micro and mini accounts.
Usually, the micro and mini account require a lower deposit, while the standard account needs a higher deposit. So, know the offered account types and choose according to your need.
Forex Trading Platforms USA
The trading platform is a vital element of a broker. Only the proper trading platform may get you the trading opportunity from anywhere and help you to go mobile. Most USA brokers offer web platforms and a mobile platform, while the platform is also available for the PC.
So, know ins and out about the platforms before you go for the US regulated forex brokers.
Spreads, Commissions, & Leverage
As all the regulated forex brokers in USA don’t provide the same spread, commission, and leverage, you should know the rates beforehand. Your ultimate goal will be to choose the US forex brokers with lowest spreads as well as the US forex brokers with high leverage.
Trading is not free except for the demo account. The top US forex brokers require a minimum deposit to trade with them. However, US forex brokers no minimum deposit also available; you just need to do some research to find them. If you don’t find any brokers with no minimum deposit, you should not get worried as most of the forex trading platforms USA require only a $100 to $250 deposit.
Best forex brokers for US clients may offer demo accounts sometimes, through which you can check out a broker before investing real money.
Customer service could be a factor to you if you are a newbie, as you may face problems initially and need to talk with the customer service. To look for a broker’s customer service quality, you can search for the forex brokers reviews on different online platforms or forums.
Apart from these factors, you may also consider the US forex brokers that allow scalping.
As the US regulation is strict and traders don’t get more than 50:1 leverage, many traders look for trading via international brokers instead of the US forex brokers. However, trading outside of US borders is illegal for retail clients. As a US citizen, USA brokers are your only choice.
So, the criteria we have mentioned in this article should help you sort out the best forex broker in USA.