Best U.S. Forex Brokers In 2024

Share this:
Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

Warning:

There is a high level of risk involved when trading leveraged products such as Forex/CFDs. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

eToro - Best Forex broker for 2024 (United States)

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Top Forex Brokers in the USA are :

  • eToro - best for an opportunity to combine active trading with social trading and passive investing

  • IG Markets - best for commissions, starting from $0 per trade

  • Interactive Brokers (IBKR) - best for educational resources

  • Oanda - best for user-friendly web platform and mobile app for trading on the go

  • TD Ameritrade - best for commission-free Forex trading, potentially appealing to cost-conscious traders

Navigating the Forex trading market requires careful consideration, especially when it comes to choosing an online U.S. Forex broker. While numerous options exist, prioritizing the best regulated brokers in the U.S. has several key advantages.

Regulations implemented by U.S. authorities like the Commodity Futures Trading Commission (CFTC) create a fair and transparent trading environment. These regulations require brokers to adhere to specific standards, including holding client funds in segregated accounts.

Furthermore, U.S. regulations ensure transparency in pricing and execution. Additionally, regulations mandate fair execution practices, minimizing the risk of manipulation and ensuring that orders are filled at the best possible price available in the market.

  • Is Forex trading legal in the U.S.?

    Yes, Forex trading is legal in the U.S. The CFTC and the National Futures Association (NFA) regulate Forex trading activities, ensuring compliance with strict regulatory standards.

  • Should I trade with a U.S. regulated Forex broker?

    Yes, trading with a U.S. regulated Forex broker is highly recommended. Regulatory bodies like the CFTC and the NFA oversee these U.S. brokers, ensuring adherence to stringent financial standards and ethical practices.

  • Do I pay taxes on Forex trading in the U.S.?

    Yes, U.S. traders are subject to taxes on Forex trading. The tax treatment is governed by Section 1256 of the Internal Revenue Code. Under this Section, 60% of gains are taxed at the long-term capital gains rate, while the remaining 40% is subject to the short-term capital gains rate.

  • Is $100 enough to start Forex trading in the U.S.?

    Yes, it is possible to start Forex trading in the U.S. with $100, but it comes with challenges. While some brokers offer low minimum deposit requirements, trading with a small amount increases the risk of rapid losses, especially when considering transaction costs and potential market volatility.

Reviews of the Best US Forex Brokers

Identified below are a number of the best U.S. Forex brokers identified by the experts at Traders Union.

eToro

Open an account
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Regulation

eToro is a legitimate company, but it doesn't offer Forex trading in the U.S.

Here's the breakdown of this broker:

  • eToro USA LLCvis CFTC-registered and FINRA-member operating in the U.S.

  • eToro USA LLC offers crypto trading through a separate entity, eToro USA LLC. While not directly regulated as a Forex broker, crypto trading on eToro USA comes under the oversight of FinCEN and relevant state regulations.

Main trading conditions

Trading conditions are not applicable since eToro does not offer Forex trading in the U.S.

Pros Cons

High level of reliability ensured by the licenses of respected regulatory authorities and participation in the compensation funds.

High minimum deposit for users

An opportunity to combine active trading with social trading and passive investing

No live chat on the website for quick connection to customer support

Provision of leverage, educational materials on various markets and user-friendly trading platforms that can run on any device

However, note that eToro USA provides a strong trading platform, offering a wide range of assets (including US stocks and cryptocurrencies) and innovative features like social and copy trading. With eToro USA, users can access a wide array of assets listed on major global stock exchanges.

IG Markets

IG Markets official website

IG Markets official website

Regulation

IG Markets (IG US LLC) is a legitimate U.S. based Forex broker. Here's a summary of their legitimacy and regulatory standing.

  • IG US LLC is a Registered Retail Foreign Exchange Dealer (RFED) with the CFTC and a member of the NFA.

  • IG Markets is a U.S. regulated Forex broker with over 45 years of experience.

  • IG US LLC offers spot Forex trading and contracts for difference (CFDs).

Main trading conditions

Here's a breakdown of key trading conditions when considering trading with IG Markets.

  • Standard accounts cater to beginners and offers access to various Forex pairs, stocks, and other assets.

  • Active trader accounts offer additional benefits like lower spreads and margin discounts for high-volume traders.

  • A new account minimum deposit is $250.

  • A minimum trade size is 0.01 standard lot (micro lot).

  • Leverage is available up to 50:1 (depending on the instrument). Leverage limits are in place to manage risk, and higher leverage options may not be suitable for beginners.

  • Commissions are variable, starting from $0 per trade for certain account types.

  • Spreads are variable, but IG Markets generally offers competitive spreads compared to other brokers.

  • Inactivity fee applies after one year of no trading activity.

  • IG offers a user-friendly web platform and mobile trading applications.

  • Customer service is available 24/5 phone and live chat support.

  • Extensive library of educational materials, including webinars and video tutorials.

Pros Cons

CFTC registration ensures compliance with strict regulations.

The $250 minimum deposit might be higher than some competitors.

IG Markets holds a strong reputation globally with over 45 years of experience.

Despite the fact that the broker provides all services during 24/5 exchange hours, the unavailability of technical support on weekends can be a disadvantage for some traders.

Standard and active trader accounts cater to different trading styles and experience levels.

Inactivity fees can apply after one year of no trading activity.

Variable commissions and spreads, generally considered competitive compared to other brokers.

Leverage limits might be less appealing for experienced traders.

Interactive Brokers

Interactive Brokers official website

Interactive Brokers official website

Regulation

Interactive Brokers (IBKR) is a legitimate Forex broker in the U.S.

  • IBKR is a CFTC-registered futures commission merchant (FCM).

  • IBKR is a member of the FINRA.

  • They are a member of the Securities Investor Protection Corporation (SIPC), a non-profit organization that protects investors in case of broker failure.

Main trading conditions

Here's a summary of key factors when considering this U.S. based Forex broker.

  • The TWS platform offers advanced features, but may be overwhelming for beginners.

  • Educational resources focused on Forex trading might be less extensive compared to other brokers.

  • The individual investor account type is for most traders, offering access to various asset classes, including Forex.

  • Minimum deposit of $10,000.

  • Minimum trade size varies depending on the currency pair.

  • IBKR offers margin trading, but leverage limits apply.

  • Commissions start at $0.005 per share for U.S. stocks and ETFs, with specific rates for options and other asset classes.

  • IBKR generally offers competitive spreads, but they can vary depending on market conditions and the currency pair traded.

  • Inactivity fee applies after one year of no trading activity.

  • Customer service might be less readily accessible compared to some competitors and potentially geared towards experienced traders.

  • IBKR offers educational resources, but specifically Forex focused materials might be less extensive compared to other brokers.

  • IBKR offers a free demo account with virtual funds to practice trading and test the platform before risking real capital.

Pros Cons

CFTC-registered, ensuring adherence to regulations and investor protection.

The TWS platform can be overwhelming for beginner traders.

IBKR offers highly competitive commissions and spreads.

Mastering the platform and navigating its advanced tools might require significant time and learning effort.

Provides various account options, including individual, joint, and institutional accounts.

IBKR's educational resources specifically geared towards Forex trading might be less extensive.

The TWS platform is powerful and customizable, offering advanced charting tools and market analysis features.

The $10,000 minimum deposit is significantly higher than most Forex U.S. brokers.

Oanda

Open an account
Your capital is at risk.
Oanda official website

Oanda official website

Regulation

Oanda is a regulated U.S. based Forex broker.

  • Oanda is a registered retail RFED with the CFTC and a member of the NFA.

  • Oanda has over 25 years of experience and holds licenses in several other jurisdictions.

  • Oanda offers spot Forex trading and CFDs on various assets.

Main trading conditions

Here are several trading conditions offered by this U.S. Forex broker.

  • A standard account caters to beginners and offers access to various Forex pairs and other assets.

  • An active trader account offers additional benefits like lower spreads and margin discounts for high-volume traders.

  • A minimum deposit of $1,000.

  • Minimum trade size is 1 unit (micro lot).

  • Oanda offers margin trading, but leverage limits apply.

  • Commissions are variable, starting from $0 per trade for certain account types.

  • Oanda offers tight spreads, which can significantly impact trading costs.

  • Inactivity fees kick in after one year of no trading activity.

  • Oanda offers a user-friendly web platform and mobile app for trading on the go.

  • Customer support is available 24/5 phone and live chat support, although weekend availability might be limited.

  • Oanda offers educational materials, webinars, and tutorials, but the extent might be less comprehensive compared to some competitors.

Pros Cons

CFTC registration ensures adherence to regulations, protecting client funds and promoting fair trading practices.

Inactivity fees can apply after one year of no trading activity.

Oanda holds a strong reputation globally with over 25 years of experience.

The $1000 minimum deposit might be higher than some competitors.

Oanda is known for offering tight spreads, which can significantly impact trading costs.

Oanda's educational resources might be less extensive than other US brokers.

Standard and active trader accounts cater to different trading styles and experience levels.

Although Oanda offers support during exchange hours 24/5, the unavailability of this service on weekends may be a disadvantage for some traders.

TD Ameritrade

TD Ameritrade official website

TD Ameritrade official website

Regulation

TD Ameritrade is a legitimate Forex broker in the U.S., is a FINRA member, and is registered with the SEC.

Main trading conditions

Main trading conditions for this U.S. broker are summarized below.

  • TD Ameritrade offers only one account type for Forex trading.

  • They require a $2,500 minimum deposit.

  • Their spreads might be less competitive compared to dedicated Forex brokers.

  • Customer support geared more towards stock and options trading.

  • Standard margin account is the only account available for Forex trading.

  • Minimum trade size is 10,000 units of base currency (micro lot).

  • Commissions are $0 on Forex trades.

  • Inactivity fee applies after one year of no trading activity.

  • ThinkOrSwim's proprietary trading platform (TOS) is considered the best software for graphical and statistical market analysis, especially effective for stock assets. At the moment, the platform is only available for US residents..

  • Customer support geared more towards stock and options trading.

  • TD Ameritrade offers educational resources, but specifically Forex-focused materials might be less extensive compared to dedicated Forex brokers.

  • TD Ameritrade offers a free demo account with virtual funds.

Pros Cons

FINRA-member and SEC-registered, ensuring adherence to regulatory standards and investor protection.

The $2,500 minimum deposit is significantly higher than most dedicated Forex brokers.

Holds a strong reputation in the U.S. with a large and established user base.

Only offers a single Forex trading account with no specific options for different experience levels.

The think-or-swim platform is known for its advanced features, customization options, and powerful research tools.

Compared to dedicated Forex brokers, spreads might be less competitive.

TD Ameritrade offers commission-free Forex trading, potentially appealing to cost-conscious traders.

Customer support geared more towards stock and options trading, potentially leading to less specialized support for Forex-specific inquiries.

Comparison of the Best Forex Brokers in the U.S.

Key metrics for certain U.S. Forex brokers is summarized below.

Broker Minimum deposit Best for Main trading conditions Regulation

eToro

N/A

N/A

N/A

CFTC-registered and FINRA-member

IG Markets

$250

Active trader accounts with lower spreads and margin discounts

Variable commissions and spreads

CFTC registration

Interactive Brokers

$10,000

TWS platform with advanced features

Investor account type offers access to various asset types

CFTC registered and member of FINRA

Oanda

$1,000

Standard account catering to beginners

Known for offering tight spreads

Registered retail RFED with CFTC and NFA member

TD Ameritrade

$2,500

Commissions $0 on Forex trades

Minimum trade size is 10,000 units of base currency

FINRA member and registered with SEC

How to choose the Best Forex Broker in the U.S.

Here are several tips to help you select the best U.S. Forex broker.

  • Look for U.S. regulated brokers registered with the CFTC or the NFA.

  • Different brokers cater to various trading styles and experience levels. Evaluate your preferred trading platforms, account types, available currency pairs, and minimum deposit requirements.

  • Compare U.S. Forex broker spreads, commissions, and fees to find options with competitive rates that suit your trading style.

  • Select a U.S. Forex broker’s platform with a clear interface and features that support your preferred trading style.

  • Prefer a U.S. Forex broker with readily available customer service options.

Is Forex trading legit in the U.S.?

Yes, Forex trading is legal in the U.S., but with some crucial caveats and regulations. Forex brokers operating in the U.S. must be registered with CFTC and often must also be members of the National Futures Association (NFA).

How to confirm if a Forex broker is regulated in the U.S.

Here's a step-by-step guide on how to check if a U.S. Forex broker is regulated by the CFTC, along with screenshots for clarity.

Step 1: Go to the Commodity Futures Trading Commission's website.

Commodity Futures Trading Commission's website

Commodity Futures Trading Commission's website

Step 2: From the main navigation page, click on the "Learn and Protect" tab and then select "Check Registration & Disciplinary History" from the dropdown menu.

Commodity Futures Trading Commission's website

Commodity Futures Trading Commission's website

Step 3: Select the red icon “NFA BASIC Database” in the middle of the page.

Commodity Futures Trading Commission's website

Commodity Futures Trading Commission's website

Step 4: You will then be redirected to the NFA BASIC search page. Here you can search for a broker using several searching methods.

Commodity Futures Trading Commission's website

Commodity Futures Trading Commission's website

Step 5: Click "Search" and examine the results.

  • If the broker is registered with the CFTC, their records will appear:

    The registration status (active or inactive)

    Any disciplinary history or regulatory actions

    Financial information

While focusing on U.S. based Forex brokers offers the benefits of CFTC regulation and direct customer support within the country, do not overlook the potential advantages of reputable international brokers. Expanding your search internationally can widen your choices in terms of trading conditions, features, and potential cost savings.

Do I pay taxes on Forex trading in the U.S.?

In the U.S., taxation on Forex trading falls under Section 1256 of the Internal Revenue Code, which specifically addresses the taxation of certain types of financial instruments, including futures contracts and options.

Under Section 1256, 60% of gains from Forex trading are taxed at a long-term capital gains rate, while the remaining 40% are taxed at the short-term capital gains rate. The long-term capital gains tax rate for the majority of taxpayers is 15%. This means that a significant portion of Forex gains can be taxed at a favorable rate compared to regular income tax rates, which can be substantially higher.

This tax treatment applies to gains and losses generated from Forex trading contracts held for more than one year. Any gains or losses from contracts held for one year or less are considered short-term and subject to the ordinary income tax rates, which can be higher than the long-term capital gains rate.

Forex trading hours in the U.S.

Forex trading is a global activity that operates 24 hours a day, five days a week. However, not all Forex markets are open at the same time, and the trading volume and liquidity vary depending on the time zone and the session. For U.S. traders, it is important to know the Forex trading hours in the U.S. and the best times to trade Forex.

The U.S. Forex market is mainly influenced by the New York session, which runs from 8:00 am to 5:00 pm Eastern Standard Time (EST). The New York session is the second busiest and most volatile session in the Forex market, as it overlaps with the London session, which is the busiest and most liquid session. The London session operates between 3:00 am to 12:00 pm EST. The overlap between the New York and London sessions, from 8:00 am to 12:00 pm EST, is the peak trading time for U.S. traders, as more than 50% of the Forex trading volume occurs during this period.

The U.S. Forex market is also affected by the Tokyo and Sydney sessions, which are the first to open after the weekend. The Tokyo session runs from 7:00 pm to 4:00 am EST, while the Sydney session opens from 5:00 pm to 2:00 am EST. These sessions tend to be less active and less liquid than the New York and London sessions, but they can still offer some trading opportunities, especially for the Asian and Australian currency pairs. The overlap between the Tokyo and Sydney sessions, from 7:00 pm to 2:00 am EST, is the quietest time for U.S. traders, as the trading volume is low and the price movements are minimal.

The best time for U.S. traders to trade Forex is when the New York and London sessions overlap, from 8:00 am to 12:00 pm EST, as this is when the market is most active, liquid, and volatile. However, U.S. traders can also find trading opportunities during the other sessions, volatile. However, U.S. traders can also find trading opportuni

Is Forex trading profitable in the U.S.?

Forex trading can be profitable in the U.S. For beginners embarking on this exciting financial journey, here are several tips to navigate the complexities of the Foreign exchange market.

  • Before diving into the world of Forex, it is crucial to build a solid foundation of knowledge. Understand the basic concepts, terminologies, and market dynamics. Numerous online resources, courses, and educational materials are available to help beginners get started.

  • Opt for a reputable and regulated U.S. Forex broker that complies with the regulatory standards. This ensures a secure and transparent trading environment.

  • Begin with a modest investment and gradually increase your exposure as you gain experience and confidence. This approach allows you to learn without risking significant capital in the early stages of your trading journey.

  • Most of the best U.S. Forex brokers offer demo accounts where you can practice trading with virtual money. Utilize this feature to familiarize yourself with the trading platform, test strategies, and hone your skills without the risk of real financial loss.

  • Develop a sound to protect your capital. Set stop-loss orders and determine the amount of capital you are willing to risk on each trade. Avoid overleveraging, as it can magnify both profits and losses.

  • Keep abreast of economic indicators, news, and geopolitical events that can influence currency markets. Understanding the factors driving market movements will help you make informed decisions.

  • Establish a well-thought-out trading plan that includes your financial goals, risk tolerance, and trading strategy. A plan provides a roadmap, helping you stay disciplined and focused on your objectives.

Our Methodology

Traders Union applies a rigorous methodology to evaluate brokers using over 100 both quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.

Key aspects of the assessment include:

  • Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.

  • User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.

  • Trading instruments. Brokers are evaluated on the breadth and depth of assets/markets available to trade.

  • Fees and commissions. A comprehensive analysis is done of all trading costs to analyze overall cost to clients.

  • Trading platforms. Brokers are assessed based on the variety, quality and features of platforms offered to clients.

  • Other factors like brand popularity, customer support, education resources are also evaluated

Summary

Navigating the world of Forex trading in the U.S. can be overwhelming. This blog post, informed by insights from trusted experts, equips you with the knowledge to choose the best U.S. Forex broker for your needs. We delve into key criteria like minimum deposits, fees, and platform features, empowering you to make informed decisions. Additionally, we explore the tax implications of Forex trading in the U.S., ensuring you understand your financial obligations. Whether you're a seasoned trader or just starting out, this comprehensive guide paves the way for a successful Forex trading journey in the U.S.

Team that worked on the article

Thomas Wettermann
Contributor

Thomas Wettermann is an experienced writer and a contributor to the Traders Union website. Over the last 30 years, he has written posts, articles, tutorials, and publications on several different high tech, health, and financial technologies, including FinTech, Forex trading, cryptocurrencies, metaverses, blockchain, NFTs and more. He is also an active Discord and Crypto Twitter user and content producer.

Knows about
patents, finance, crypto

Experience
Practicing as a registered US patent attorney for almost thirty years, Thomas has written and obtained hundreds of US and International patents for clients having varying technologies. He offers a unique BSEE, MBA, and JD perspective on financial, technical, legal, and crypto issues.

Over the last 30 years, Thomas has written posts, articles, and publications on several different high-tech, health, and financial technologies. He is an active Discord and Crypto Twitter user and content producer. He has drafted and edited crypto technical documents including articles, blog posts, whitepapers, patent applications, legal briefs, technical memoranda, opinions, transfer agreements, expert technical reports, and other complex technical documents. Many of his consulting engagements have involved blockchain projects. He has also authored at least 40+ crypto posts and educational pieces.

Education
DePaul University College of Law
Doctor of Law
University of North Carolina at Charlotte
Master of Business Administration (MBA), International Business

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.

Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.