US Forex Brokers
To start trading Forex, you need to find an intermediary, i.e a company that provides access to the interbank market. Those companies are called “brokers” and they offer special trading software allowing you to place orders and analyze markets.
Forex brokers provide their customers with asset prices that come directly from the interbank market. Typically, they cooperate with liquidity providers that aggregate prices from various financial organizations and institutions. This allows traders to get better prices.
US Forex brokers features
Forex brokers are not only for offering trading platforms. Apart from this, they provide customers with many other useful or not features that we are going to describe below.
Forex trading requires funds to be able to earn more. If you don’t have much money or you don’t want to invest much into your trading routine, you can use the leverage that you can find on every broker’s website nowadays.
Leverage is an additional amount of money that you can get as a credit from a company. It is used to increase your financial opportunities when buying or selling currency pairs and other trading instruments.
The leverage may reach up to 1:1000 and even 1:2000 (if you are dealing with offshore brokerage companies). However, for US-regulated brokerage firms, this amount is limited by 1:50.
Leverage is considered to be risky by its nature. A high leverage ratio allows you to open many trades, which can lead to high-frequency trading. This trading style involves the highest risks. That’s the main reason why some US, European, and Asian regulatory bodies limit the maximum leverage level.
Leverage has both good and bad. It is good when you need to get more money to increase your trading volumes. If everything goes right, you will get higher profits in the end. However, if something goes wrong, your losses will also be higher. The leverage limitations are applied mostly to protect beginner traders.
To buy and sell various types of assets, you need special software. Those times when traders and investors could place orders via phone have gone long ago. Currently, you don’t need a phone to give an order to your broker to buy and sell assets. A trading platform is a key tool that you can use to open long or short trades on your own.
Trading terminals are connected directly to the brokers’ servers. They exchange data with servers all the time and get prices. When you place an order, it goes to the server to stay there until you cancel it or close.
All trading platforms allow you to use various types of orders to benefit from most market situations. If you are pleased with the current price, you can buy an asset right away. If not, you can place a limited order to wait until the price reaches a certain level.
There are also some risk and money management tools that you can use to improve your trading results. Stop Losses allow you to limit your eventual trading losses in each open position. By placing them, you protect your money. Take profits are also a good solution as they allow you to close your orders when the price reaches a certain level.
Trading terminals provide traders with all necessary analysis tools. They include technical indicators that will help you to find trends, learn more about the market volatility or eventual reversals.
Apart from technical indicators, you can use a wide range of graphic tools including various types of charts (lines, areas, Heiken Ashi, candlesticks, bars, and others), trend lines, horizontal support, and resistance levels, price channels, Fibonacci retracement, and many more.
Some trading platforms allow you to use third-party software like indicators, scripts, and even trading bots. Metatrader from Metaquotes is designed this way. This trading platform allows you to upload your own indicators and robots to improve your trading experience.
You don’t necessarily need to install the software on your hard disk. There are web platforms that work in browsers. Those who prefer mobile trading will benefit from mobile trading software for iOS and Android.
Most brokers offer various types of trading assets to help you with your portfolio diversification. You don’t necessarily need to deal with Forex majors only. Apart from them, you can buy Forex crosses, exotic currencies, metals, indices, and stocks. In some cases, brokers offer ETFs to buy.
Asset management services
Trading is hard work to do. You need to have enough skills and knowledge to succeed. And even if you have all the above mentioned, you can fail. This is why many US Forex brokerage companies offer asset management for passive investments.
This feature allows you to invest money in ready strategies. You don’t need to have any previous trading or investing skills. Everything you need is to read more about each offer and to make a decision.
This is not the only way to invest. Some companies provide their customers with social network trading opportunities. By using those services, you need to choose a successful trader and copy his trades.
Education and market research
To become a trader, you don’t necessarily need to graduate from any economic-related college. Most FX traders get knowledge from the Internet. Forex brokers offer various types of education programs to allow them to be ready for this long and hard trip called FX trading.
What should you know before sending your first order?
- General information about the financial markets and asset prices. It is recommended to learn about supply and demand and their influence on market quotes.
- Technical and Fundamental analysis types. Most traders nowadays use Technical analysis to predict market prices. This forecasting method is based on math and graphic tools. It is considered to the simplest one but you will have to learn its principles to become a skilled trader.
- Money and risk management. It is impossible to become a successful trader without following money and risk management strategies. You can’t succeed in every trade. You will have to learn how to limit your risks and maximize your profits to earn money on Forex.
- Trading psychology. Many things in our heads prevent us from being successful traders. Greed, fears, and other emotions can easily empty the pockets.
Most US Forex brokerage companies provide their customers with detailed educational programs which include all or almost all of the above-mentioned. If there is something you need to learn additionally, you can browse this website to find more information.
As for market research, most US Forex brokers offer market reviews, which help you to have a brief insight into what is happening currently and the events that may have a significant impact on the market situation ins the future.
Apart from those reviews, some companies cooperate with world-leading market research providers like Trading Central and others. US FX brokers provide traders with detailed economic calendars allowing them to be aware of the most important data releases and events. You need this information even if you are not a news trader. Market data releases increase volatility in most cases. Technical traders do their best to avoid trading in those moments.
How to pick an FX broker
The range of companies providing their customers with access to the intrabank market is wide. You may spend days to make your own research. We are going to provide you with some important criteria that will help you to pick a good brokerage firm.
Spreads and commissions
Before you create an account with a brokerage firm, it is recommended to learn more about the spreads and fees that you are going to pay for various services.
Spreads are the difference between the Bid and Ask price. Most modern US Forex brokers offer floating spreads starting from 0.5 pips. When it comes to fixed spreads, they generally start from 3 pips. Spreads are important as this commission is charged every time you place an order. They are especially important for intraday traders who prefer to open many trades within 24 hours.
How do spreads work? If the EUR/USD’s current rate is 1,2000 and you place a long order, your buying price will be 1.2003 meaning you give three pips to the broker. If you place a short order, your price will be 1.1997. The more positions you open throughout the day, the more you lose. This is why intraday traders are looking for companies with the lowest spreads.
It is also important to understand that floating spreads may change during the session. They grow once the important data appears. This means there is no guarantee EUR/USD’s spread will not exceed three pips in this case. This is why some companies offer fixed spreads. By choosing them, you will have a standard spread without changes throughout the day.
Apart from spreads, there are other commissions including swaps and deposit/withdrawal fees. Swaps are calculated when you decide to leave your order overnight. Swaps calculations are based on the current central bank rates. This commission may be negative (deducted from the traders’ position) or positive (added to the trader’s position).
There are also fees related to deposit/withdrawal transactions. While most Forex brokers do not charge their customers with those commissions, they may appear on the payment system’s side. You need to read the terms and conditions of your payment method to understand your final deposit/withdrawal costs.
US Forex brokers are considered to be safe and reliable as compared to European or offshore companies. They are regulated by National Futures Association or Commodity Futures Trading Commission. Clients are protected by the Securities and Exchange Commission. Before creating an account, make sure the brokerage company is regulated.
What are the risks of trading with an unregulated company?
- They can manipulate prices. This is one of the most spread ways of cheating that malicious brokers use to make traders lose everything.
- They prevent their customers from withdrawing money.
- They close traders’ accounts without allowing them to cash out their funds.
There are many other methods that those malicious companies apply but the general idea is to start working with regulated companies. You will be protected by the regulatory authority in this case.
Good Forex brokers provide their customers with a choice of payment methods to fund their accounts and cash out money. Apart from traditional wire transfers and bank cards, they offer other opportunities including PayPal and some electronic wallets.
It is important to understand the choice of the payment method can be done based on the fees, the transaction speed, and availability. Wire transfer is in most cases the longest way to withdraw money. The cashing out procedure may take up to 7 banking days. This is also the most expensive way to withdraw money.
When it comes to bank cards, you can withdraw money faster (up to five bank days) with fewer commissions. Paypal is one of the fastest ways to cash out money from any brokerage company that accepts it.
A trading platform is a way of communication between the trader and the market. Modern Forex brokers do their best to provide customers with cutting-edge trading technologies. Most companies do not limit their trading terminal choice to one single platform.
By providing traders with multiple platform options, US Forex brokers give their customers a unique opportunity to trade on various markets and to use as many analysis tools as possible.
Even if you have picked a regulated company, It doesn’t mean you are 100% protected from minor issues. Even if the FX broker meets all regulatory requirements, it may offer bad quality service that you will not be pleased with. To avoid this, we recommend reading other traders’ reviews.
What should you focus on? First of all, it is important to understand how do a company treats its customers. Most traders’ reviews are full of details related to the quality of service and the responses that the tech team gives to the customers.
A good broker may become bad and you need to know it first. Make sure you read the latest reviews and testimonials.
How to start working with a broker: a 4 step guide
Step 1. Create an account
Before you will be able to download the platform and place your first orders there, you need to create an account. Be ready that this procedure will take time. US Forex brokers require full information about their customers as they are subject to financial market law and regulations.
A company may require your full name, address, email address, zip code, mobile phone number, and other important information. Input the right data as later you will have to confirm it by passing a verification procedure.
Step 2. Verify your account
All US Forex brokers are subject to KYC and AML policies. This means they are required to know their customers. To learn more about you and to be sure you have indicated the right personal data, they ask you to provide a copy of your ID documents and a copy of your bills to be sure you have provided the right residence address.
Verification can take up to 7 days but normally it goes faster. Once the account is verified, you get full access to all broker’s features.
Step 3. Fund your account
Now it is time to deposit money. You need to go to the banking options and choose what you want from the available payment methods. When picking a particular payment method, make sure you know the commissions you will be charged with and the speed of transactions.
If you need faster depositing and withdrawals, it is better to choose electronic wallets.
Step 4. Download and install a trading platform
You are almost ready to place your first trade. Now you need to download and install a trading platform. This procedure is fast. You need the basic PC user skills to complete it. Moreover, some companies offer web terminals that require no downloading and installing at all.
You can use them right away by opening them in your browser. For mobile trading, you need to download an iOS/Android app or use a web terminal as well.
Now you are ready to trade. Below you will find some top US Forex brokers descriptions that will help you to make the right choice.
This Forex website is the property of StoneX company. It is a US-regulated Forex brokerage company that is known far abroad. Forex.com provides access to the most liquid markets. Here you can trade the following types of assets:
- Forex. This is the 24/5 market allowing you to speculate on currency prices. Forex.com offers a wide range of currency pairs including exotic ones. With this brokerage company, you can benefit from leverage and no commission trading (spreads only).
- Stocks. By buying stocks with Forex.com, you can create your own investment portfolio. CFDs allow you to buy and sell stocks at any moment (you can benefit from both uptrends and downtrends). Forex.com offers low commission plans for stock trading.
- Indices. With Forex.com you can get access to the most popular indices from various markets including US stock markets, European trading gound, and others. By using indices, you can diversify your investment portfolio.
- Commodities. Get access to the most popular and liquid commodities. You can earn on oil price fluctuations or invest in precious metals. You don’t need to think about where to store your commodities as you are dealing with CFDs.
Forex.com provides their customers with cutting-edge trading technologies. Here you can download and install the MetaTrader trading terminal which is considered to be one of the best solutions for traders. Metatrader has all necessary analysis tools including a variety of trending and oscillator indicators, graphic tools, etc. You can upload your own scripts, indicators, and trading robots as well. This platform includes an integrated Reuters newswire allowing you to be aware of the most important events on the market.
Apart from MetaTrader, you can get access to the web terminal, which allows you to start trading right away without downloading and installing any application. Webtrader has fewer features as compared to the desktop MetaTrader platform but it includes all necessary tools to trade and analyze markets.
Education and analytics
Forex.com is designed for both beginner and skilled traders. You can start your trading career here by learning more about FX trading and its particular aspects. There are plenty of useful articles that you can read on their official website. They will provide you with details about the market analysis methods, main trading concepts, money and risk management, trading strategies, and other important aspects.
The market research section includes trading ideas where you can find many interesting articles about the trending assets to watch. There are also pivot points that will help you to find the most important trading levels for the day. The Market insights section is a kind of a guide on the most popular trading assets and their features.
This is a mixture of a Forex broker and a social trading platform. eToro is the leading company that provides traders with cutting-edge trading platforms and top-notch services. By choosing eToro, you get access to the following markets:
- Currencies. You can trade 48 currency pairs from majors to exotic ones. eToro offers one of the lowest spreads in the industry.
- Stocks. You can buy stocks to diversify your portfolio. eToro provides you with the opportunity to get direct access to the most liquid markets. There are also many European stock markets where you can choose some lower liquidity stocks.
- Indices. Indices are also a great tool for portfolio diversification. This Forex brokerage firm allows you to choose from the most popular indices including S&P500, DJ30, UK100, GER30, CHINA50, etc.
- ETFs. Investing in exchange-traded funds is a good solution for those who want to buy ready-made portfolios. eToro provides their customers with more than 250 ETFs.
- Commodities. By choosing eToro, you get this unique opportunity to buy and sell oil, metals, and other commodities.
- Cryptocurrencies. While the cryptocurrency market is still young, it offers plenty of opportunities to both beginner and skilled traders.
eToro provides traders with proprietary trading platforms. It has a very simple but functional interface. Here you can buy and sell assets as well as to conduct deep market research. This platform includes many popular and newest technical indicators that you can add to your chart. There are also some popular graphic tools including trend lines, price channels, support and resistance levels, etc.
If you don’t have enough skills to do everything on your own, you can subscribe to trader’s accounts and copy their trades. eToro provides you with all the necessary information about those traders including their profitability and drawdowns. You can also make a choice based on their risk levels.
When it comes to education, eToro provides you with a whole set of useful content about trading and its features. You can read articles or watch video tutorials. By reading those articles you will learn about the basics of trading, market analysis tools, strategies, and many other useful things.
This is another industry-leading US Forex broker offering high-quality service combined with competitive spreads and low commissions. Here you can trade:
- Currency pairs.
- Precious metals.
Oanda provides their customers with several trading terminal types. Here you can download and install their proprietary platform, which is equipped with all necessary tools including indicators, lines, channels, etc. There is also a web platform that can be used if you don’t want to install anything on your hard drive.
Oanda provides traders with the mobile platforms for the most popular iOS and Android mobile OS. And that’s not all. You can also download and install the MetaTrader trading terminal, which is the leading platform allowing you to use plenty of analysis tools and trading robots.
This US Forex broker offers its own research lab, which is a good tool for all those who prefer to use third-party analytics. Here you can find a correlation table, volatility graphs, currency strength heatmap, official economic figures, and others.
There are also the most important news and market reviews that will give you an insight into what is going on in the world of financial markets.
As for the learning sections, it offers three main categories. The beginners will be able to make a start with the “Getting Started” section. Here you can find everything about the first steps in trading.
“Tools and Strategies” will give you all the necessary information about the “equipment” you can use to forecast prices and to become a successful trader.
“Capital Management” is a very important section where you can learn more about the risks in trading and how to prevent losses and preserve your money. Apart from this, you can participate in various webinars with skilled financial market professionals.
This US Forex broker provides you with the opportunity to start trading various assets from 135 markets located in 33 countries. By choosing this company you will benefit from the lowest commission in the industry (from $0) and the share price improvement system.
Interactive Brokers offers a proprietary web terminal with all the necessary tools to make deep technical analysis research. You don’t need to install it as it works in the browser. The platform is fast and secured.
If you want something bigger with even more tools, you can download a MetaTrader trading platform. This is a true “monster” of the industry as additionally to all those indicators and graphic tools, you can add third-party trading robots and test your strategies.
IB offers two mobile applications for iOS and Android-based devices. They have a limited set of features as compared to MetaTrader but they allow you to do all basic work including market analysis and decision making.
Education and market research
Those who start their trading trip will be pleased with a whole range of educational content including useful articles and webinars. As for market research, IB offers many useful market reviews to allow you to make the right market decisions.
This Forex company provides you with the opportunity to trade on over 17,000+ markets offering almost limitless diversification opportunities. Forex currency pairs, cryptocurrencies, stocks, indices, commodities – all those assets can be traded with competitive spreads and low commissions.
IG offers a proprietary online web terminal with plenty of useful features including various chart types, trend and oscillator indicators, graphic tools. This platform includes also trading signals that will allow you to be aware of the recent trading opportunities.
There is also the MetaTrader trading platform with unique analysis and placing order features. You can add your own software based on the MQL programming language. Trading robots are also welcomed.
Education and market research
The Learn to trade section includes plenty of useful content about the basics of market speculations, technical and fundamental analysis, money, and risk management. You will also be able to have a deep market insight by reading special reviews provided by the market professionals.
Is one of the world-leading brokerage companies available in many countries. Saxo Bank gives you many trading instruments including currency pairs, commodities, stocks, indices, and even derivatives. There are also trading strategies that are designed to facilitate your trading routine.
There are two trading platforms that you can benefit from when choosing Saxo Bank – SaxoTraderGo and SaxoTraderPro. They provide you with all the necessary tools to conduct deep market research and to create algorithmic trades. Both platforms are web-based meaning you don’t need to download them. They are mobile adapted. You can use them on your smartphone or tablet.
Apart from those trading terminals, you can download a famous MetaTrader platform or use TradingView online terminal. There is also a special multi-chart application that allows you to refine any trading strategy by using advanced chart tools.
Whatever level of skills you have, you can always improve them by visiting their webinars or Become a better trader section. You will be able to learn more about reading and various analysis aspects.
US Forex broker is designed for both traders and investors. Here you can find a plethora of assets including FX currencies, stocks, indices, commodities, and others. Various investment products are less riskier than trading.
When dealing with TD Ameritrade, you can use the Thinkorswim trading terminal which is a rather popular platform in the United States and abroad. You can download and install it or use it in your browser. This trading terminal offers everything you need in trading including indicators, graphic tools, market data, and others. If you need a mobile app, you can download it for any iOS and Android devices.
Education and market research
If you are new to FX trading, you will find many useful pieces of content here including articles about trading, webinars, and podcasts. TD Ameritrade will provide you with smart guidance into the world of FX speculations.
As for the market research tools, you can get daily market reviews to make the right market decisions. All research content can be filtered by categories allowing you to find whatever you need faster.
That’s another great US Forex broker allowing you to buy and sell various asset types. Be it currencies or stocks, commodities or indices, you will be provided with top-notch services and fast order execution.
Ally invest offers competitive spreads and low commissions.
Ally Invest provides their customers with cutting-edge technologies offering an upgraded trading platform. You don’t even need to download it as you can use it in your browser. This trading platform includes all the necessary tools for technical analysis. You can use various indicators and graphic tools to forecast price fluctuations.
Aly Invest welcomes all categories of traders and gives beginners all the necessary to make a smooth and seamless start. You can learn more about FX trading basics and get market insight.
This US FX broker provides you with a unique opportunity to get access to various markets from a single account. You can trade currencies, stocks, metals and diversify your portfolio on your own. ATC Brokers provides you with the lowest spreads allowing intraday traders to apply all types of strategies there.
ATC Brokers offers a single trading platform – Metatrader. You can use it on your PC, laptop, or any mobile device based on iOS or Android. There is also a web version that you can launch in your browser.
Education and analytics
ATC Brokers offers their customers some useful articles on how to trade the FX market. You will be able to learn more about trading strategies and psychology. As for analytics, market reviews allow you to be aware of what is happening in the world of financial markets.
This brokerage company offers currencies, commodities, and some derivatives. You can benefit from competitive spreads and low commissions. There are several account types allowing you to choose the best trading conditions.
TradeStation offers a proprietary trading platform for various types of devices. This trading terminal is a reliable tool allowing you to place trades and analyze markets. You can install it on your hard disk or use it via a browser.
Education and analytics
Both are available here. You can learn more about Forex trading and get some useful recommendations from skilled market experts.