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8 Best US Forex Brokers In 2024 – Pros, Cons & Cost Compared

Read about the 8 best forex brokers in the USA. Our complete comparison helps you make informed decisions in the world of forex trading.

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Best Forex Broker In USA
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With a daily turnover of over $5 trillion, the foreign exchange market is the most active financial market worldwide. The purpose of this guide is to assist traders from the United States in finding the ideal US forex broker that suits their trading style.

We meticulously evaluate and analyze various aspects such as commissions & spreads, trading platforms, execution speed, and overall quality to identify the top US forex brokers.

It’s important to note that all these brokers are regulated and licensed by the National Futures Association (NFA) in compliance with stringent criteria that ensure protection against potential forex scams.

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Here, we present you with a list of top-notch US forex brokers operating in the United States.

8 Best US Forex Brokers

IG – Best US Forex Broker Overall

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Established in 1974 by Stuart Wheeler, IG Group (IG) is the first-ever spread betting firm. As a subsidiary of IG Group Holdings plc, a publicly traded conglomerate listed on the LSE under the ticker symbol IGG, IG has made an impressive re-entry into the U.S. market since early 2019.

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On a global scale, IG caters to individuals interested in trading CFDs and participating in foreign exchange markets. It's as straightforward as that. Embracing the age-old adage "Go big or go home," IG is well-equipped to deliver on its promise due to its capabilities.

This broker stands out in the online US forex broker market thanks to its competitive advantage of low spread costs, unwavering commitment to customer service and education, valuable research insights, and user-friendly interfaces that facilitate seamless trading experiences.

Pros

  • Broad array of services
  • Welcomes clients from the U.S.
  • Regulated by the FCA (U.K.) and CFTC, NFA (U.S.)
  • Focus on education and research
  • Provides safeguarding for U.K./E.U. client accounts

Cons

  • The IG platform lacks copy trading and back-testing integration
  • Share-CFD fees on the platform are relatively high

eToro – Best for Copy and Crypto Trading

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eToro is an expert in social trading, making it a perfect choice for newcomers, and is the best forex broker in the USA. With eToro, beginners can follow the trades of experienced traders with a proven record of success. In addition to its outstanding social trading network, this brokerage offers top-notch educational resources for those new to forex.

Their user-friendly platforms and apps enable anyone to start trading multiple assets and immediately engage in social trading. However, they don’t support the MetaTrader 4 and 5 (MT4 and MT5) forex trading platforms.

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Pros

  • The platform is easy to navigate and user-friendly
  • It includes a CopyTrader feature for new traders to replicate professional strategies
  • A virtual dummy account is available, providing $100,000 for practice trades
  • The mobile app offers advanced trading features

Cons

  • Elevated non-trading fees
  • Absence of crypto-to-crypto trading pairs
  • Room for improvement in customer support

Plus500 – Best for Mobile Users

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Plus500, a European-based derivatives broker, specializes in offering CFDs (Contracts for Difference) to various traders. It specifically caters to advanced traders and those who prefer mobile trading. This comprehensive platform provides all the necessary information on the assets you wish to invest in, allowing you to easily incorporate CFDs into your investment portfolio.

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For beginners, Plus500 offers demo accounts that serve as valuable practice tools. However, it’s worth noting that the platform lacks an extensive range of educational resources required for starting from scratch. As a result, novice traders may find it beneficial to explore alternative options, while experienced traders can leverage Plus500's unique assets for increased profits.

Pros

  • Accessing both sides of the forex market is advantageous for seasoned traders
  • Advanced traders face no obstacles when signing up and diving into their work

Cons

  • You might find CFDs too intricate to handle

Interactive Brokers – Best for Professionals

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Interactive Brokers is recognized as one of the most well-funded non-bank brokers for traders and investors based in the United States. They provide a wide range of assets, covering 135 markets across 33 countries in 23 different currencies.

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Their product and service offerings are designed to meet various needs, including individual accounts, retirement planning, asset management, and algorithmic portfolios. When it comes to trading fees, Interactive Brokers stands out with some of the lowest rates in the industry.

Interactive Brokers utilizes advanced trading platforms, with its primary IB Trader Workstation facilitating algorithmic trading. Interactive Advisors serves as the Robo portfolio division of Interactive Brokers, granting traders access to portfolios starting at a mere $100. 

The Investors Marketplace offers over 2,000 services across five categories, while the Probability Lab provides support for options traders.

Pros

  • Many different features
  • Many educational services

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Cons

  • Abundance of information
  • No reference to bonuses or promotions

Public.com – Best for Affordability

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Established in 2019, Public is a financial services company based in New York City. Founded by Jannick Malling and Leif Abraham, the company specializes in developing a mobile and web investing platform that allows for fractional investments. As a regulated broker-dealer, Public.com ensures that securities are protected up to $500,000 per account.

Public distinguishes itself as a user-friendly stock trading app that caters to beginner investors. The app operates on a commission-free model and aims to address common barriers faced by those who are hesitant to invest.

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These barriers include limited financial literacy, restricted access to costly financial products, and high share prices requiring substantial investment. By providing solutions for these challenges, Public.com opens up the stock market to a wider range of potential investors.

Pros

  • Allows fractional shares
  • Connects investors through social media
  • User-friendly mobile app

Cons

  • Restricted account options
  • Narrow investment choices
  • Limited features

CMC Markets – Best Platform Technology 

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CMC Markets, an esteemed US forex broker, has effectively adjusted to the dynamic online brokerage industry since its establishment in 1989. The company holds a prominent position on the London Stock Exchange (LSE) with the ticker symbol CMCX.

Appealing to traders of all levels, CMC Markets accommodates novice retail traders venturing into online forex trading, CFDs, and spread betting, as well as seasoned professionals seeking diverse product offerings. The firm's fees remain competitive in comparison to industry standards.

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Pros

  • A diverse array of services
  • Regulated by FCA (U.K.)
  • Focus on education and customer service
  • Industry-leading research facilities
  • Provides account protection for clients

Cons

  • Contrasts between Next Generation and MT4
  • Elevated CFD spreads for specific indices
  • Ineligibility for U.S. clients

Saxo Bank – Best Web-Based Trading Platform

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Founded in 1992,Saxo Bank Group (Saxo Bank) is a leading Fintech specialist that facilitates investment opportunities in global capital markets. Being one of the pioneers in online trading platforms, Saxo Bank launched its services in 1998. In the United Kingdom, Saxo Bank has been operating since 2006 through its subsidiary Saxo Capital Markets U.K. Ltd (SCML).

Designed for advanced traders, Saxo Capital Markets offers a range of brokerage services catering to sophisticated investors, professionals, and institutions. However, individuals with smaller accounts may be disappointed due to higher account minimums, various fees involved, and limited customer support options available.

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Tiered accounts provide lower trading costs and additional benefits as equity increases. However, retail traders might find it challenging to reach higher customer tiers.

Pros

  • Wide array of offerings
  • Regulated by FCA (U.K.)
  • Dedicated forex research
  • Exceptional user interface
  • Provides safeguard for client accounts

Cons

  • Limited focus on customer service
  • Complicated fee structures for instruments
  • Absence of MT4
  • Unavailable for U.S. clients

XTB – Best for Research and Education

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Established in 2002 as the pioneer leveraged foreign exchange brokerage firm in Poland, X-Trade transformed into X-Trade Brokers in 2004 to comply with newly imposed Polish regulations.

In 2007, the company went public and became listed on the Warsaw Stock Exchange with the XTB ticker. Subsequently, it underwent rebranding and was renamed XTB Online Trading (XTB) in 2009.

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For traders seeking cost minimization, XTB is an excellent option. It enables them to reduce trade placement costs (bid/ask spread) and additional expenses like wire fees.

Non-U.K. accounts can enjoy maximum leverage of up to 500:1, while U.K. accounts have access to leverage of up to 30:1. The firm prioritizes customer support and provides valuable educational resources and research tools that are particularly beneficial for beginner traders.

Pros

  • Competitive FX spreads
  • Regulated by FCA (U.K.)
  • Client account protection is provided
  • Strong emphasis on customer service

Cons

  • High non-FX spread expenses
  • Not available for U.S. clients

Our Ranking Methodology for the Best Forex Brokers in the USA

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Our analysis of internet-based currency exchange brokers and their services is based on in-depth investigation. Our assessments merge gathered information with the knowledge and proficiency of our skilled researchers. We create thorough research documents and guides for forex trading while actively monitoring various global regulatory bodies.

Our team of researchers conducts extensive testing across a diverse range of attributes, offerings, services, and resources of forex brokers in USA. This procedure encompasses the gathering and verification of numerous data points. We meticulously evaluate all accessible trading platforms, be they exclusive or provided by external entities, using objective variables driven by data analysis.

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  • Commissions and Fees: We thoroughly examine the fees and commissions charged by the US forex brokers, which encompass bid/ask spreads for commonly traded forex currency pairs. We delve into additional expenses associated with trading, such as inactivity fees, custody fees, minimum deposit requirements, and potential VIP rebates or discounts. Our research encompasses a wide range of fee-related data to provide a comprehensive evaluation.
  • Mobile Trading Accessibility: We assess the ease of accessing and using mobile trading platforms. The ability to trade on mobile devices enables traders to keep track of the forex market and manage their positions from virtually anywhere. This flexibility is particularly important in a market that operates 24/5 across various time zones. Traders can take advantage of market changes, execute trades, or make adjustments even when not on their desktop computers. Our evaluation involves calculating each broker's Trust Score to assess their reliability and credibility.
  • Education: Traders at all skill levels rely on having access to high-quality educational resources. A broker who offers a wide range of training materials, webinars, tutorials, and market analysis equips traders with the knowledge they need to make well-informed choices.
  • Platforms & Tools: The use of trading tools can significantly impact how well a trader performs. Tools such as live news updates, economic calendars, and risk management features assist traders in staying informed and maintaining control over their positions. This article explores various forex brokers in the USA, including proprietary systems developed by brokers and third-party solutions.

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Best US Forex Brokers – Buyer’s Guide

What Is a Forex Broker?

Financial institutions known as retail forex brokers are intermediaries between individual traders and the foreign exchange market. These brokers operate online through their official websites, catering to smaller traders who engage in currency trading on a margin basis.

Online US forex brokers typically enable traders to execute forex transactions using their electronic trading platforms. Alongside their proprietary software, many brokers also support widely used third-party platforms like MetaTrader 4 and 5 (MT4/5) from MetaQuotes.

Certain US forex brokers also provide valuable educational resources for novice traders, enabling them to enhance their understanding of trading. These best US forex brokers grant access to expert analysis of the forex market and financial news feeds, which can assist in making more informed trading decisions.

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Opting for a US forex broker that utilizes automation allows you to explore trading bots. These AI-powered programs leverage current information to execute trades on your behalf, employing specific trading strategies to maximize your profits.

Nevertheless, it's important to note that trading bots aren’t flawless. Conduct thorough research, establish a budgetary plan, and closely monitor your account for optimal outcomes.

Do I Need a Forex Broker?

The forex market is the largest financial market globally, which lacks a central exchange for traders. The rapid changes within this market can result in substantial profits followed by significant losses.

Consequently, finding a trustworthy US forex broker that aligns with your investment needs and trading style becomes crucial for succeeding in the global foreign exchange markets.

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As an investor in forex, you likely have specific requirements regarding account types, trading platforms, and customer services. By leveraging the expertise of forex professionals and utilizing stable platforms with advanced resources and tools provided by reliable brokers, you can greatly enhance your ability to achieve your trading objectives within the dynamic world of forex.

Understanding the US Forex Market

The rapid adoption of Forex by US traders is hardly unexpected, given the presence of a significant community of retail traders in the country due to its expansive stock market. American traders found the transition from stocks to Forex particularly alluring, thanks to the substantial leverage available in Forex as compared to stocks.

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With the popularity of Forex trading, the competition among US forex brokers intensified. New retail traders are often unsure about the diverse types of brokers available and which one is best suited for their trading needs. We have created an in-depth analysis of all regulated US forex brokers and narrowed the list to our top US forex brokers so you can choose the best one for you.

Our research included hundreds of hours of arduous work so that you can easily choose where to begin your Forex trading journey. Our independent research found the right type of broker for various trading needs and skill levels, from new retail traders to longstanding day traders to seasoned professionals.

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The world's largest currency is the US dollar, and it’s the world's reserve currency. The pricing of commodities like oil, gold, and most others is done in US dollars. As previously mentioned, the US boasts of having the world's biggest equity market.

All these factors make the US dollar a prominent currency in Forex trading worldwide. When we refer to "major pairs" in Forex trading, it means pairs that include USD, such as EUR/USD, USD/JPY, GBP/USD, etc.

However, it should be noted that US forex brokers also offer pairs without USD, like EUR/JPY, CAD/JPY, GBP/NZD, etc., which are known as "crosses". As a trader from the United States, you can trade major Forex pairs as well as crosses

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US Forex Market Regulation

When US forex brokers emerged to cater to the growing demand from retail traders, the most reputable forex brokers based in the US lawfully conducted their business. However, there were others who lacked integrity and didn’t prioritize their clients' interests. 

Recognizing this issue, US regulators swiftly realized that they could not permit forex brokers accepting US clients to engage in dishonest practices or misappropriate client funds.

Before the introduction of Forex trading in the US, the broader financial sector was already subject to stringent regulations. It was only a matter of time before similar strict oversight would be applied to US forex brokers accepting clients from the US.

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As a trader based in the US, this is beneficial as it protects against unscrupulous brokers who operate with questionable ethics at best.

What Is the US Market Regulation?

If you’re considering using the services of a US Forex broker, it’s crucial that they’re regulated by the Commodity Futures and Trading Commission (CFTC) and are a member of the National Futures Association (NFA).

The NFA provides an online verification system known as the Background Affiliation Status Information Center (BASIC), which allows you to verify whether Forex brokerage firms have obtained the required regulatory compliance and approval.

How Does a Regulated Market Benefit You?

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There are two key advantages to forex regulation in the United States. It guarantees that regulated brokers in the US operate efficiently and have adequate capitalization. This reduces the risk of your broker collapsing and leaving you waiting for deposit refunds during bankruptcy proceedings.

It ensures that your broker cannot unfairly exploit you and is obligated to provide a fair market and the trading conditions they advertise. With US forex regulation, you can feel confident that your investments are protected and that your broker treats you fairly.

Advantages of Choosing to Work with US Forex Brokers

As a US trader, you may wonder if these restrictive measures are advantageous or harmful. The reality is that strict regulations have their pros and cons. On the downside, they have made it challenging and expensive for US forex brokers to cater to US clients, resulting in a limited selection of options available to traders from the United States.

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Forex brokers catering to US citizens have put in significant effort to fulfill regulatory obligations. These brokers possess substantial capital, adhere strictly to compliance regulations, and demonstrate a sincere commitment to long-term presence in the industry.

In the United States, all US forex brokers that are regulated fall under a unified set of regulations. This eliminates any confusion or complications caused by regional or state-level differences.

Consequently, when comparing two US forex brokers, you can be confident that they will both adhere to the same rules and guidelines. As a result, you can focus on other factors to determine which one is the best option for you as a trader in the US.

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Do You Pay Tax on Forex Trading in the U.S.?

U.S. citizens and residents are required to disclose all of their income, including profits from forex trading, regardless of whether they receive a Form 1099-B from their broker. These gains can be subject to taxation as capital gains or business income if a corporate account is used. It’s crucial for individuals to inform their tax advisors about the specific nature of their trading activities.

The tax treatment may vary depending on whether one engages in over-the-counter spot forex trading or trades exchange-traded forex futures contracts. Certain forex contracts could be considered commodities contracts under Section 1256 g based on the choices made by the individual's tax advisor.

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About the CFTC

The Commodity Futures Trading Commission (CFTC) is an official regulatory body in the United States that has been granted authority by Congress to serve as the primary overseer of derivative markets. Its main objectives include maintaining the integrity of these markets, implementing effective regulations for participants, and mitigating the risk of fraudulent activities.

Under its jurisdiction, the CFTC monitors various market sectors such as commodities futures and options, foreign exchange, exchange-traded securities, and securities traded in over-the-counter (OTC) markets.

Apart from being regulated by the CFTC, individuals or entities involved in trading usually need to obtain regulatory status from another organization called the National Futures Association (NFA). The NFA is a self-regulatory organization (SRO) composed of members and authorized by the CFTC to assist in ensuring compliance.

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US forex brokers operating within US borders must be registered with CFTC and NFA organizations because they’re subject to strict regulation. Consequently, these brokers have gained global recognition for their reliability and trustworthiness.

How to Verify CFTC Registration?

To determine whether a US forex broker is registered with the CFTC and regulated by the NFA, the initial step involves locating the NFA ID number within the disclosure text located at the bottom of the broker's homepage in the United States. To illustrate, here’s an example of the essential disclosure text found on FOREX.com's website.

FOREX.com is an authorized FCM and RFED under the supervision of the CFTC and holds membership in the National Futures Association (NFA # 0339826).

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Afterward, search for the company on the NFA website by utilizing the Background Affiliation Status Information Center (BASIC) tool to confirm the present condition of the identification number.

How Do You Trade Forex in the U.S.A?

To begin trading forex in the United States, select a US forex broker that’s properly regulated and licensed by both the CFTC and the NFA. After choosing a regulated US forex broker, you can utilize the following steps as a helpful guide for initiating your forex trading journey in the US:

  • Setting up your account: Complete the application process for your chosen US forex broker, ensuring that you carefully review and understand any relevant terms and conditions.
  • Funding your account: Once your account is established, you'll need to deposit funds into it. Brokers typically offer various deposit methods, so choose the one that suits you best. For many forex traders, PayPal is a popular choice; you can find out which brokers support this method by referring to our guide on using PayPal for forex trading.
  • Mastering the trading platform: Familiarize yourself with the broker's trading platform by starting with a demo account, also known as virtual trading. This allows you to practice and gain confidence in using the platform before engaging in live trading.
  • Entering the forex market: Choose your preferred trade size and initiate a long position by clicking "buy" on a specific currency, or open a short position by clicking "sell."
  • Creating a trading plan: Develop a comprehensive trading strategy that ensures consistent trading, aligns with your goals, and effectively manages risks. The formulation of a sound trading plan is crucial for long-term success in trading.

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Questions to Ask Yourself When Developing a Trading Strategy Include:

  • What are my trading goals, and how do they fit into my lifestyle?
  • How will I find trading opportunities?
  • How long do I want to be in the market when I place a trade?
  • Based on my expected trading duration and risk/reward thresholds, what is my ideal trade size?
  • What is the most I want to risk on a trade?

How to Choose the Best Forex Broker in the US?

A US forex broker that’s in line with your trading objectives and preferences while also providing a safe and secure trading environment is considered the best. Here are a few key factors that a broker should fulfill:

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  • The broker is regulated by a leading regulatory authority and/or registered with the US Commodity Futures Trading Commission (CFTC) while a member of the National Futures Association (NFA).
  • It ensures the reliable and prompt execution of trade orders.
  • It maintains competitive pricing.
  • It ensures a secure and protected trading environment.
  • It offers cutting-edge and advanced trading platforms.

Before you decide to join a brokerage, take the time to evaluate these factors and conduct extensive research carefully.

Best US Forex Brokers – Frequently Asked Questions

Is Forex Available in the US?

In the United States, forex trading is completely legal. The country's regulatory bodies, the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA), have the responsibility of overseeing and regulating forex trading.

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It should be noted that there are strict regulations in place for forex trading and brokers in the US. For instance, brokers who are registered in the US must maintain a minimum capital of $20 million, and they can only apply a maximum leverage of 50:1 on most major currencies.

Is Forex Trading Tax-Free in the US?

In the United States, forex trading is subject to taxation, with the Internal Revenue Service (IRS) applying different rules to various types of forex transactions. When it comes to spot forex trades, the IRS classifies them as ordinary gains and losses under IRC Section 988 contracts.

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If you engage in spot forex trading, you will be considered a 988 trader by the IRS, allowing you to report all your forex losses as "ordinary losses."

On the other hand, if you trade in forex futures or options, your gains or losses will be taxed at a rate of 20% on 60% of the amount. The remaining 40% will then be subject to a tax rate of 37%.

What Forex Fees Do I Need to Pay in the US?

In the United States, US forex brokers authorized to conduct business charge various fees. These fees include commissions, spreads, and financing costs, which are considered the most significant. The spread encompasses all trading fees except for the financing rate at certain US forex brokers.

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Essentially, these brokers offer you a wider spread than what they receive from the forex market. Some forex brokers in USA may opt for lower spreads but will levy a commission for each trade.

If you engage in leveraged forex trading and keep your position open overnight, you’ll be subject to a fee known as financing cost. This cost varies on a daily basis and can accumulate if you hold your positions for an extended period of time.

Furthermore, there are additional charges that brokers may impose, such as withdrawal fees, inactivity fees, and account fees.

Final Thoughts

In the fast-paced realm of forex trading, where time is of the essence, selecting a dependable broker can be the difference between financial success and failure. Regardless of whether you have years of experience or are just beginning, discovering the finest US forex broker is a pivotal step in your journey.

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It extends beyond spreads and trading platforms; trustworthiness, security, and customer support also play significant roles.

This article will explore the leading US forex brokers who excel in this field. Our ultimate choice is IG because it grants you valuable insights to make an educated decision that has extraordinary potential to lead toward a profitable and gratifying trading venture.

Disclaimer: The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.

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