How to choose the best forex broker in USA
Regulation of a broker
Regulation is the most crucial element to check when selecting a forex broker in a country like the United States. A broker has to ensure multiple parameters to continue offering trading services in the country including but not limited to;
- Safety of clients funds and confidential information
- Holding segregated bank accounts for clients investments
- Ensuring funds compensation in case of becoming insolvent
- Ensuring KYC compliance to avoid money laundering activities
- Disclosure of financial statements to the concerned authorities at regular intervals, etc.
Always make sure that your prospective broker holds a valid license from the concerned regulatory bodies in the United States. Two main authorities who regulate forex trading within the country are;
- Commodities Futures Trade Commission (CFTC)
- National Futures Association (NFA)
The overall reputation of a broker
Checking the broker’s reputation is as important as other factors while searching for a forex broker. You can read clients’ testimonials and feedback about your prospective broker on popular discussion platforms, such as Reddit, and Quora. You should also check the broker’s rating with independent review websites such as Trust Pilot, and Yelp, etc. Lastly, you can also seek personal suggestions to ascertain the trustworthiness of a broker.
Open an account with a broker that is in business for more than 03 years
Do not open an account with a broker who is new to the industry. After all, it’s not just about the matter of your funds security but it’s also about your overall well-being. Novice brokers have to face many challenges such as regulatory compliance, liquidity assurance, and protection of clients’ confidential data. It might not take more than a couple of years for an incompetent broker to fail the market limitations and become liquidated. Therefore, it is best to sign up with a broker that has already survived its existence in the industry for three years or more.
Check deposit and withdrawal process
Checking the deposit and withdrawal process of your prospective broker is also imperative. Usually, brokers are quick to process deposits. However, when it comes to releasing your funds, most brokers struggle to process your withdrawal requests on time. Also, do not forget to check the available payment options. Sometimes it’s not the broker who delays your payments but the method you choose takes more time. For example, fund transfers using credit/debit cards are instantaneous as compared to wire transfers that could take between 24 hours to several days.
Check the international presence of a broker
It is common for successful brokers to operate on an international level. A broker has to ensure various prerequisites to become regulated in a country other than its home country. If your prospective broker holds multiple regulations, you can rest assured that a broker is sufficiently liquid, secured, and has best practices in place.
Contact customer support
Do not overlook the significance of checking the broker’s customer support services. A broker who fails to offer efficient customer services is likely to disappoint you in other matters as well. Try to interact with the customer support staff of your prospective broker, ask several queries and register a couple of complaints with it. A reliable broker will turn around with proper resolution to your queries and complaints within a suitable time period.
Best Forex Brokers In The United States
Listed below are some best forex brokers in the United States.
Forex.com – It offers user-friendly trading platforms
IG Markets – It comes with a low-cost brokerage fee
TD Ameritrade – It offers multiple tradable financial instruments
How did we select the best forex brokers in the United States?
We took the given below factors into account while selecting the best forex brokers in the United States;
Checked and confirmed the regulatory status
We have personally checked the regulation status of each of the brokers listed. After asking the license numbers from concerned brokers, we verified them on both Commodities Futures Trade Commission (CFTC) as well as National Futures Association (NFA) websites. We found that all our listed brokers are authorized to operate within the United States.
Checked reputation of brokers
We have also confirmed the positive reputation of our listed brokers from multiple channels, including independent review websites, social networking platforms, and personal references. After considering the clientele feedback and reliability scores of our listed brokers, we made identifiable patterns and excluded any broker that didn’t meet the specific criteria.
Tested deposit and withdrawal process
We made deposits and placed withdrawal requests with all of the listed brokers. Honestly, we faced no issues either with deposits or withdrawals. Besides being fast enough to process our payments, the brokers didn’t charge us any additional cost neither on deposits nor on withdrawals.
Used services and features
We also used different services and features offered by our listed brokers, such as leverage, charting tools, trend indicators, research tools, and educational resources. We found that our listed brokers ensure high industry standards in the provisioning of different services and features.
Tested trading platforms
To check if the trading platforms offered by our listed brokers are customer-friendly, we tested each of them personally. We found that all of the trading platforms are not only easy to navigate but also have all the basic and advanced tools required for successful trading.
Checked the availability of mobile trading platforms
We have ensured that all our listed brokers offer custom-built mobile trading platforms for on-the-go traders. Clients can access their trading accounts and keep placing trades round the clock with the comfort of their mobile screen. You can download the mobile trading apps of the brokers from App and Google Play Store.
Checked demo accounts
We have confirmed that demo accounts are available with each of the listed brokers. Traders can use demo accounts to practice as many trading strategies as possible. Our listed brokers offer demo accounts with unlimited expiry.
Contacted customer support
Lastly, we checked the level of customer service with all of the listed brokers. Despite raising multiple complaints and asking too many queries, our brokers’ customer support staff remained well-behaved, composed, and professional.
Forex Brokers in the United States– FAQs
Is forex trading legal in the United States?
Yes, forex trading is legal in the USA. However, the country has strict regulatory restrictions in place.
Do forex traders pay tax in the United States?
Yes, traders have to pay taxes on their forex earnings in the United States. It is believed that the tax rate on forex earning in the United States is higher than most jurisdictions worldwide.
Who regulates forex trading in the United States?
Commodities Futures Trade Commission (CFTC) and National Futures Association (NFA) are the main regulatory authorities that look after the affairs related to forex trading.
How many forex traders are there in the United States?
According to https://www.forex.in.rs/, there are nearly 0.48 Million traders in the United States.
Can U.S. residents sign up with a forex broker from abroad?
Yes, they can. However, traders must sign-up with the US-regulated brokers only.
Final Words
Since there are a limited number of brokers operating in the United States, you don’t have many options available. Therefore, we have handpicked some of the best forex brokers in the United States.
