US Forex Brokers 2021

We have created a complete guide below on trading forex in the US. This covers everything from the best forex brokers for US citizens to the specifics of the foreign exchange market when trading in the States.

The foreign exchange market offers plenty of opportunities. It is also an enormous global market that requires proper regulation. If you are keen to dive into the exciting world of forex, then you will need to find the right broker to help you trade.

Best US Forex Brokers

The list below is based on a variety of factors like fees, security, regulation, trading platforms and more. This is our selection of the best brokers for Forex Trading in the US.

  • Interactive Brokers
  • Forex.com
  • IG
  • TD Ameritrade
  • thinkorswim
  • Ally Invest
  • ATC Brokers
  • Oanda
  • Nadex
  • FXChoice

Forex.com

Forex.com is a leading broker for high-volume traders. Extensive forex trading can be done thanks to the wide range of currency pairs available. 

This broker is specifically focused on forex trading, but it is not the best choice for traders wanting to expand their investment portfolio.

forex.com logo
Pros
Cons
Low forex fees
High stock CFD fees
Great technical research tools
Limited investment portfolio beyond forex
Plenty of forex currency pairs
Not the best beginners trading platform

Interactive Brokers

Busy day traders love Interactive Brokers. This is largely due to the Trader Workstation desktop platform that offers great tools for enhanced day trading. 

The fees are low, the speeds are high, and there are some great investment options. This is a versatile trading platform that suits forex traders well due to the wide-ranging currency pairs.

Interactive Brokers Logo
Pros
Cons
Fast and efficient active trader platform
Inactivity fees
Great research tools
Commission-free trading on the ETF and stock markets

IG

When it comes to US forex brokers, IG ticks all the right boxes. The broker is well regulated and offers fantastic tools for trading on the foreign exchange market.

There are versatile options for trading and the platform is user-friendly. IG also offers great speeds for quickly closing transactions at real-time market prices. 

IG Logo
Pros
Cons
Great web trading platform
Forex trading fees could be better
Excellent trading tools and educational content
Customer support
Withdrawal and deposit options

TD Ameritrade

This versatile US forex broker appeals to all kinds of traders. The online trading platform can be used for all sorts of investments – offering wide market access. 

Trading is limited to the US, and the broker is particularly good for long-term investing and retirement planning too. 

TD Ameritrade Logo
Pros
Cons
Easy to start trading with no account minimum
Not a focused on Forex
No commissions for stock, ETF, and options trades
Well regulated in the US
Great customer support

thinkorswim

Thinkorswim is a trading platform offered by TD Ameritrade. This is a powerful platform for serious traders thanks to its many tools available. 

The platform is suitable for all types of forex traders thanks to its excellent research options and educational content on offer. Thinkorswim is an appealing forex trading platform thanks to its many currency pairs available. 

Thinkorswim
Pros
Cons
Free for Ameritrade customers
Not the easiest platform for beginners to use
Excellent research tools and educational content
Includes a wide range of investment opportunities
Offers live or demo trading

Ally Invest

Ally Invest is a great forex broker to use thanks to the easy investing process. The broker offers automated, managed portfolios for investors seeking this help. 

The platform has no monthly fees, and Ally Invest’s self-directed trading is commission-free. Ally is a large online bank, and they offer plenty of helpful financial tools to their customers.

Ally Invest Logo
Pros
Cons
A versatile online broker
Research tools could be better
Commission-free trading available
No monthly fees
Excellent savings tools available

ATC Brokers

This multi-assets trading platform offers many great features for smart, efficient forex trading. Users can enjoy a demo account, social/copy trading, and excellent research and comparison tools. There are plenty of good currency pairs available for foreign exchange trading. 

ATC Brokers is an appealing choice for both beginner forex traders and experienced investors due to the research tools and user-friendly platform that is offered.

ATC Brokers Logo
Pros
Cons
Suitable for various levels of traders
High minimum deposit
An easy to use trading platform
Great research tools
Offers social/copy trading

Oanda

This private company broker is a top choice for forex trading thanks to its many currency pairs available. The research tools are top-notch, with great technical indicators. The API offer is excellent, and the trading platform is easy to use. 

Oanda Logo
Pros
Cons
High-quality research tools
Beyond forex, the product portfolio is limited
Excellent forex currency pair options
An easy to use platform
Easy to open an account

Nadex

Forex traders can enjoy low fees and quality tools on the Nadex trading platform. This isn't the first choice for beginner traders, as the platform is quite tricky to navigate. 

Experienced traders can enjoy a good selection of spread and binary options. Trading is also very speedy.

Nadex Logo
Pros
Cons
Brilliant educational content and research tools
A complex platform for beginners to use
Low fees and minimums
A good selection of spread and binary options

FXChoice

This global online trading platform is one of the best options for efficient forex trading. Active traders get a commission discount, and there is great automated and social trading. 

FX Choice allows you to trade forex, CFDs, crypto, and commodities on MT4 or MT5. The platform has a wide range of trading tools to suit all kinds of investors.

FC Choice Logo
Pros
Cons
Great automated and social trading features
Not the widest investment opportunities available beyond forex
Great educational content and tools
An easy to use platform
Low fees and commissions

>> Want to Trade Forex? Check out our guides on:

How to Pick a Forex Broker?

Choosing the best US forex brokers comes down to several factors. Here are some important considerations to make when looking for a forex broker in the USA.

Regulation

US forex brokers need to be regulated for safe trading. This is a legal requirement, but it also enhances the safety of the trading platform for investors. In the USA, forex brokers are regulated by the CFTC and NFA.

Fees & Commissions

Different forex brokers offer different fees and commission structures. This needs to suit your trading strategy. If the fees are too high, traders can lose a significant amount to their broker.

Currency Pairs You Can Trade

Foreign exchange trading is all about currency pairs. These are the two different types of currencies that you will be exchanging.

The best forex brokers offer wide-ranging forex pairs for more versatility and wider trading options and greater flexibility.

Account Types 

There are various account types for traders to choose between. These include demo accounts, micro accounts, mini accounts, standard accounts, VIP accounts, and more.

The account types should match the trader and their experience level. Always see what account types are available from your broker.

Order Types

When forex trading, there are five different order types to consider. These are market orders, limit entry orders, stop entry, stop loss, and trailing stop orders. 

Different brokers and trading platforms offer these orders in unique ways. Make sure that this works for your trading strategy.

Leverage Available and Margin

Leverage is when traders open positions worth more than their capital behind them. Margin is the deposit amount that is needed for opening a position in a trade. 

Different brokers offer different levels of leverage and margin available. Always consider what you will have to work with before choosing the trader, as this can make up an important part of any forex trading strategy. 

Account Minimums

The amount of money needed to open an account and start trading differs between brokers. Make sure that the account minimum is suitable for your available capital and trading requirements. 

Trading Tools Available

Trading platforms optimize the experience by offering helpful tools that allow investors to make more informed decisions. 

Specialized trading tools can help investors to analyze the market and better understand what trades they should make. 

Research Available

Forex trading relies on traders making informed decisions. This is helped by powerful research facilities that the broker and platform offer. 

Make sure to consider what research options are available, as this can seriously influence your trading experience. 

Mobile App

Active traders often rely on mobile apps for fast and easy trading. Not all brokers offer mobile platforms for trading, which can be an essential addition for many traders.

Device Compatibility

Make sure that the trading platform offered works with your computer or mobile device. 

Trading platforms available 

Different trading platforms are supported by different forex brokers for a more wide-ranging and enhanced trading experience. This commonly includes the different versions of MetaTrader, cTrader, and so on. 

The broker you choose will need to support platforms that work with your investment strategy.

Customer Support

Great customer support can make all the difference when dealing with US forex brokers. Always look into what kind of support is offered, and what other users have to say about the support. This can make a huge difference when you need it.

What is Forex Trading?

Trading forex involves the buying and selling of currencies. The foreign exchange market is always changing, with different currency pairs fluctuating in value all the time. 

Forex trading is when you buy a certain amount of a single currency, and trade for a different currency. The exchange rate determines how much of each currency you can get. 

Trading Forex In The USA

Trading forex in the US is legal, but it needs to meet a few requirements. Traders will need to go through US forex brokers who are properly regulated and meet the correct specifics for safe, legal trading. 

All US forex brokers need to be registered with the Commodity Futures Trading Commission (CFTC) which is the main regulator. The other regulator in the US is the National Futures Association (NFA). ANy broker serving US clients, or operating in the US, needs to abide by the laws they enforce. 

Forex trading in the US is often done through day trading. This is when a trader starts their day with no currency and closes the day with no open transactions – buying and selling throughout the day. 

Regular market trading hours in the US are from 9.30 am to 16.00. However, the forex market operates 24 hours a day, 5.5 days a week. Traders buy, sell, or exchange currencies for speculative and hedging reasons.

RFED

Retail Foreign Exchange Dealers (RFED) is an entity that works as a counterparty to an OTC, off-exchange forex transaction where the trading doesn’t involve any of the exchanges. 

FIFI Rule

As part of the NFA compliance rules, traders need to follow the First In First Out (FIFO) rule. This is when the earliest trades need to be closed in situations where several open trades on the same currency pairs exist.

Dodd-Frank Act

Forex trading in the US follows laws that mostly fall under the Dodd-Frank Act. This act, passed in 2010, was implemented to enforce stronger regulations on forex trading as a result of the 2007-2008 financial crisis. 

As a result of the Dodd-Frank Act, there are fewer US forex brokers around, as the laws slowed down much trading. All of the US forex brokers listed below comply with the Dodd-Frank act and all US regulations.

FAQ

What is a pip?

When exchanging two different currencies, the amount of change in the exchange rate is the pip.

What is a lot?

When you trade in foreign exchange, the amount of a certain currency you buy is called a lot. Often, this is 100,000 units. 

What are leverage and margin?

Leverage is opening a new position that is worth more than the capital you have backed behind it. Margin is how much you need to deposit for opening a new position in a forex trade.

Dealing-desk and agency broker difference

A dealing desk broker accepts trades from clients without actually trading in the underlying market. Agency brokers keep the client’s best interests in mind when taking transactions from them. Agency brokers have a level of responsibility to act for their client’s best needs.