Why do Forex brokers not accept U.S. clients?

Why Are U.S. clients not accepted by many Forex brokers?

Forex Brokers refrain from accepting U.S. clients because of the complex and multi-faceted regulatory framework that governs the retail Forex trading market in the U.S..

The limitations laid down by the regulatory bodies (CFTC and NFA) are strictly administered, and these high-standard laws safeguard retail investors in Forex markets.

Below are two laws that prevent Forex brokers from accepting U.S. clients:

• The Dodd-Frank Wall Street Reform and Consumer Protection Act. The act is one of the main reasons why Forex brokers hesitate to accept U.S. clients. This act was implemented after the financial crisis in 2008. The goal is to make a strong financial system with rigid monitoring and regulations. Both of these laws became a challenge for the Forex brokers, as they had to meet all the requirements set as per the laws

• Retail Investor Approach. This law protects individual investors from unsafe trading scams. The CFTC and NFA implemented measures that add complexities and compliance costs to the brokers

Is the broker you choose regulated and legit? We recommend following the five steps to find out: How to Check if a Broker is Regulated and Legit in 5 Steps.

If the Forex Broker doesn't accept U.S. clients, how do I get that broker?

Before searching for Forex Brokers, traders should understand the regulations and the reasons behind the exclusions.

To find out the broker, traders can figure out whether there are any alternative brokers available with similar offerings that accept U.S. clients.

Apart from this, traders can opt for reliable and regulated offshore Forex brokers. These offshore brokers can't accept U.S. clients. So, the traders should have the related risk capacity and choose a well-regulated broker with a good reputation.

To know more about the best brokers in the USA based on fees, regulations, trading platforms, asset classes, customer support, and more, we recommend reading - Which Forex Broker Is Best In The USA?

If I'm not a U.S. citizen but living in the U.S., can I use it?

Yes. Traders who are non-citizens but reside in the U.S. can use the Forex trading platforms by looking out for brokers accepting clients living in the U.S..

Here are some steps to try if you are a non-citizen but residing in the U.S.:

• Legal Residency. Sometimes, Forex brokers do not focus on citizenship. They focus on where traders live. If traders have legal residency proof of living outside the U.S., there might be a chance to open an account

• Legal Entity. If the traders have a legal entity in another country, they might have a chance to avail of the service if described in the broker's terms and conditions. The traders should follow the laws of their home country and the U.S.

• VPN (Caution advised). Some traders use a Virtual Private Network (VPN) to hide/change their location and access brokers that don't accept U.S. clients. This step is risky, and if found by the broker, the account access may be suspended or blocked

• Connect with Broker. Talk to the broker through customer support to ask if they can make any exceptions or special arrangements

Stick to compliant brokers within the United States to avoid any legal problems and financial losses. Traders should understand and respect the regulations to maintain a fair trading environment.

Best Forex Brokers

1

9.4/10

Go to broker

Your capital is at risk.

Minimum deposit:

$10

Bonus for deposit:

60%

Regulation:

FSC

Review

RoboForex is a well-established brokerage company offering a broad spectrum of trading opportunities for active traders and investors alike. With an impressive selection of over 12,000 financial instruments - including currency pairs, CFDs on stocks, indices, metals, energies, and futures - RoboForex provides a versatile trading environment.
The broker boasts competitive trading conditions: tight spreads starting from 0 pips, high leverage up to 1:2000, and fast execution speeds. The broker also offers the CopyFx investment program, which allows traders to copy the strategies of successful investors and earn passive income. Additional perks include instant fund withdrawals and some of the industry’s highest affiliate payments (up to 84%).
RoboForex prioritizes reliability and client satisfaction, establishing itself as a trusted partner for traders worldwide.

Pros/Cons

•Availability of favorable trading conditions and a minimum deposit

•Unique investment program CopyFx

•Highest affiliate payments: up to 84% of the fee paid by the referral

•Market launch - STP and ECN

•Instant withdrawal of funds

•Minimum deposit - $10

•A small number of currency pairs - 36, for accounts: Pro, Pro-Cent, ECN, Prime

•Lack of tools when trading on the R StocksTrader platform

Study Review

2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

$5

Bonus for deposit:

50%

Regulation:

MISA

Review

Pocket Option caters to both Forex and binary options traders, offering a wide range of trading instruments, a copy trading service, and passive income opportunities.
Clients can trade CFDs on currencies, cryptocurrencies, stocks, indices, and commodities with spreads starting from 1.2 pips and no additional commissions per lot. Pocket Option's unique "My Safe" service offers up to 10% annual interest on unused account balances.
While the platform excels in serving active traders, its demo accounts and referral program also offer value to beginners. However, the lack of cent accounts and ECN options could be a drawback for certain professional traders.

Pros/Cons

•MetaTrader provides for trading binary options and CFDs;

•A demo mode is available for all account types;

•To register, you may use your Google email or Facebook/Google account;

•Active, social, and algorithmic trading is available on MT4 and MT5 accounts;

•Spreads are from 1.2 pips for Forex and no fees per lot;

•Referral program for retail clients with rewards of up to 50%-80% of the referee’s income;

•“My Safe” service that provides for crediting 10% per annum on the account balance not involved in trading;

•Cash back and promo codes for binary option traders;

•50% deposit bonus.

•The broker offers neither cent accounts for novice traders to test strategies and advisors, nor ECN accounts with near zero spreads for professional traders;

•Real-time communication with operators is available upon funding the account.

Study Review

3

9.1/10

Go to broker

Your capital is at risk.
You can lose your money.

Minimum deposit:

$10

Bonus for deposit:

0%

Regulation:

FCA, CySEC, FSA (Seychelles), FSCA, BVI FSC, FSC (Mauritius), CBCS, and CMA

Review

Exness is one of the world’s largest brokers, known for its competitive trading conditions, high security, and wide selection of assets. The company serves over 700,000 active clients and processes a monthly volume exceeding $4 trillion.
While specializing in currency pairs, Exness also offers CFDs on stocks, commodities, indices, and cryptocurrencies. The broker caters to all experience levels with various account types – from cent accounts and social trading for beginners to high leverage and Expert Advisor support for seasoned professionals.
Exness holds multiple international licenses, including the stringent FCA and CySEC, ensuring trader funds are protected.
With features like 24/7 support, fast withdrawals, and analytics tools, Exness strives to provide an optimal trading experience.

Pros/Cons

•Availability of 8 licenses and a membership in the Financial Commission with its own compensation fund to insure traders against losses;

•Wide choice of account types — Standard, Pro, Cent, Swap Free, and Demo;

•Wide range of CFDs, including over 100 currency pairs;

•Zero deposit and withdrawal fees;

•Proprietary platforms for active and social trading, as well as all versions of classic MT4 and MT5.

•The broker’s website offers almost no educational materials;

•24/7 support isn’t available in all languages.

Study Review

Your location is United States

If you would like to learn about the best brokers in your region, please use the “Find my broker” service.

Tips on finding Forex brokers for U.S. clients

Not all Forex brokers avoid U.S. clients. Some international brokers accept U.S. clients if they meet the criteria, such as being accredited investors or qualified institutional investors.

Here are some tips for finding suitable Forex brokers for U.S. clients:

• Regulated Forex Brokers. The first step in finding Forex Brokers is to be on the safer side, selecting brokers regulated by the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA)

• Eligibility Criteria. Read the terms and conditions to confirm that they accept clients from the United States. Some brokers may have specific requirements for U.S. clients that have to be met mandatorily

• Accredited Investors. Connect with brokers offering services to accredited or qualified institutional investors. These brokers often have specific offerings tailored to experienced and financially qualified traders

• Customer Reviews. Customer reviews and testimonials are the best way to gauge the experiences of other U.S. clients with the broker

• Trading Platforms and Fees. Analyze and compare trading platforms and fee structures offered. Check the spreads, commissions, and available assets to ensure they align with your trading preferences

While considering the above tips, we also recommend reading - 5 Best Forex Brokers in the USA for 2024 to stay updated on some of the best brokers of this year.