8 best US regulated forex brokers in 2024
U.S. traders engaging in forex activities are advised to exclusively opt for brokers that strictly adhere to regulatory compliance standards. These standards are established by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).
After thorough research and analysis, we have identified the following as the top forex brokers for U.S. traders:
- OANDA: Recognized as the best overall forex broker for U.S. traders.
- Forex.com: Noted for having the lowest spread among forex brokers.
- IG: Acknowledged as the best forex broker for those who are new to trading.
- Interactive Brokers: Stands out for offering the best commission rates among brokers.
- TD Ameritrade: Distinguished for providing the best customer support within the U.S.
- eToro: Highlighted as the best platform for social and copy trading.
- Trading.com: Known for offering a good selection of currency pairs.
- Plus500: Regarded as the best broker for future trading.
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OANDA – Best U.S. Forex Broker Overall
OANDA claims the top spot as the leading U.S.-regulated forex broker, distinguished by consistently lower spreads compared to the industry average. This, coupled with their offering of top-tier trading platforms, tools, and an extensive loyalty program tailored for high-volume traders, positions them as the forefront choice.
Key Features:
- Tight Spreads with No Commission Fees: Our thorough analysis of the world’s 40 top forex brokers revealed that OANDA’s standard account spreads are, on average, 18.5% lower than industry standards.
- Cost Efficiency: In specific instances, such as the AUD/USD pair, where the typical industry spread is 1.54 pips, OANDA’s minimum spread narrows down to just 1.1 pips, marking a significant cost reduction of over 28%.
Competitive Spreads Across Major Currency Pairs
OANDA consistently boasts lower spreads across major currency pairs, significantly outperforming industry averages. A glance at the spreads for various pairs illustrates their commitment to cost efficiency:
| Forex Broker | USD/JPY | GBP/USD | AUD/USD | USD/CAD | EUR/GBP | EUR/JPY |
|---|---|---|---|---|---|---|
| OANDA Minimum Spread | 1.3 | 1.5 | 1.1 | 1.5 | 1.2 | 1.5 |
| Industry Average Spread | 1.44 | 1.57 | 1.54 | 1.82 | 1.66 | 1.95 |
Loyalty Program for High-Volume Traders
OANDA’s Elite Trader program is tailored for dedicated traders, featuring five tiers starting at a monthly volume of 10 million. High-volume traders can benefit from rebates ranging from $5 to $17 per million traded, translating to potential cost reductions of up to 34%.
Additional Benefits Include:
- Free VPS for enhanced execution
- Unlimited wire transfers without fees
- Direct access to a relationship manager for personalized support
- Complimentary advanced charting tools like TradingView
- Interest earnings on unused margins for account balances exceeding $10,000
Trading Tools and Platforms
OANDA offers two platform options—MetaTrader 4 (MT4) and OANDA Trade—each equipped with a unique set of features to support diverse trading strategies.
MetaTrader 4 (MT4) Features
MetaTrader 4 stands out as a favored platform among global forex traders, providing robust charting capabilities and an extensive array of built-in technical indicators. With the flexibility of nine timeframes and over 50 pre-installed indicators, traders gain precise insights into market trends and movements. The platform’s user-friendly interface enables seamless trading directly from the charts, enhancing efficiency.
Justin Grossbard, a notable figure at CompareForexBrokers, highlights the core advantages of the MT4 platform, emphasizing its automation capabilities.
“The standout feature of MetaTrader 4 is undoubtedly its Expert Advisors (EAs). This is the reason MT4 remains my go-to platform,” he notes.
“Imagine having a tireless ally in your trading journey, one that executes trades and fine-tunes your strategies through meticulous backtesting. EAs are that ally, offering a relentless pursuit of efficiency and precision, turning complex data into clear, actionable decisions.”
For OANDA clients seeking an elevated trading experience, the MT4 Premium Upgrade is available. This enhancement includes 28 additional technical analysis tools, providing a more refined and automated approach to trading tactics.
OANDA’s Exclusive MT4 Orderbook Indicator
Adding to its offerings, OANDA introduces the MT4 Orderbook Indicator, an exclusive feature with a 20-minute delay for all clients and a five-minute delay for elite traders. This indicator provides a view of all OANDA clients’ open orders and positions, seamlessly integrating them into their MT4 charts. Available without additional charges for traders meeting specified deposit and trading volume thresholds, the MT4 Orderbook Indicator offers valuable insights into market sentiment.
OANDA Trade and TradingView
OANDA Trade, the broker’s proprietary platform, is enriched with TradingView’s suite, boasting over 65 technical indicators and extensive drawing tools for comprehensive analysis. The user-friendly platform enhances trading with Autochartist’s automated chart pattern recognition, ensuring traders are well-prepared for technical analysis. It also keeps users connected to global finance updates with its Economic Overlay, delivering real-time economic information within the platform.
OANDA Trade further provides the option to integrate specialized third-party tools. For those aiming to refine their strategies, Motivewave’s advanced backtesting capabilities prove invaluable, while Dow Jones FX Select offers a continuous stream of news and expert analysis to inform trading decisions.
Financial Markets
OANDA caters to diverse trading preferences, offering a range of over 68 forex pairs encompassing major, minor, and exotic currencies. For enthusiasts interested in spot cryptocurrency trading, OANDA’s collaboration with Paxos allows account holders to access key cryptos such as Bitcoin, Ethereum, and Litecoin on Paxos’s itBit exchange through the OANDA app.
2. Forex.com: Leader in Low Spread Forex Trading
Securing the second spot, Forex.com stands out as a preferred broker for those seeking an ECN-style account in the United States. Its RAW Account, featuring ECN-style pricing, offers the potential for spreads to reach as low as zero pips, accompanied by a fixed commission fee.
Apart from its competitive spreads, U.S. traders enjoy an extensive range of trading products, including forex, shares, precious metals, and various derivatives like futures and options. This diverse market access, coupled with competitive pricing, creates an appealing combination for traders.
ECN-Style Spreads
Forex.com provides traders with flexibility by offering two pricing options catering to different trading strategies. The spread-only standard account eliminates commission fees, making it suitable for novice traders who prefer a straightforward cost structure. Compatible with MetaTrader 4, MetaTrader 5, and the Forex.com platform, this account type allows versatility in choosing a trading platform.
On the other hand, the RAW Account is tailored for traders seeking the tightest spreads, starting at zero pips, with a fixed commission fee of $7 round turn. This account is accessible on both the Forex.com platform and MetaTrader 5, delivering an optimized experience for high-volume trading.
3. IG: Empowering Beginners in Forex Trading
Claiming the third spot, IG emerges as the ideal forex broker for beginners, driven by its commitment to providing an accessible and educational trading environment. From user-friendly platforms to extensive learning resources, IG tailors its services to ensure new traders can navigate the forex landscape with confidence.
Education and Resources
IG’s dedication to educating beginner traders is evident through its invaluable materials. The IG Academy offers a comprehensive suite of online resources, including live training sessions and tutorials crucial for mastering the fundamentals of forex trading.
The broker goes beyond by organizing interactive seminars and webinars that delve deeper into trading concepts. To simplify complex ideas, IG provides a glossary and educational materials, along with a free economic calendar and analytical tools to apply theoretical knowledge practically.
In addition to these resources, IG grants access to a demo account with $20,000 in virtual funds. This feature enables beginners to navigate the real-world forex market, gaining valuable experience without the high risk of losing real money.
Reputation
IG boasts a solid reputation in the forex trading community, evident in its ‘great’ rating on TrustPilot, backed by thousands of five-star reviews. With over 45 years of operation and serving over 313,000 clients globally, IG has established itself as a reputable force in the forex industry.
Industry expert Noam Korbl from CompareForexBrokers.com commends IG’s track record and achievements, stating, “IG’s track record in the financial services industry is remarkable, and they have been recognized for their brokerage excellence and technological advancements in the industry many times this year.”
Forex Trading Platforms
IG caters to beginner forex traders with two primary platform choices: its proprietary platform and MetaTrader 4 (MT4). The bespoke platform, designed for newcomers, offers a user-friendly interface across web, tablet, and mobile apps, ensuring compatibility with Android and iOS systems.
For beginners envisioning a shift to a more sophisticated platform, IG provides MT4, celebrated for advanced features like Expert Advisors (EAs) for automated trading and AutoChartist for advanced chart analysis. This makes MT4 a valuable option for traders evolving in their forex trading journey.
4. Interactive Brokers: Revolutionizing Broker Commission Rates
Securing its position as the epitome of cost-efficient trading, Interactive Brokers (IB) stands out for its low fees and powerful trading tools, making it an attractive choice for traders who prioritize cost-effectiveness.
Low Trading Fees
IB’s commitment to affordability is evident in its transparent pricing structure. Clients enjoy direct access to interbank quotes and top-tier liquidity providers, ensuring pricing transparency without hidden spreads or markups. U.S. clients benefit from tight spreads with volume-tiered pricing, emphasizing cost efficiency in forex trading.
For share trading, IB offers two main account options. The IBKR Lite account suits beginners, featuring no commissions on U.S.-listed stocks and ETFs. The IBKR Pro account, tailored for active traders, provides competitive tiered pricing.
IB extends its commitment to competitive rates across various financial instruments, with options starting at $0.15 to $0.65 per contract, futures as low as $0.25 per contract, and mutual funds transactions capped at $14.95.
Trading Platform Options
Interactive Brokers caters to diverse trading preferences and expertise levels through its range of trading platforms:
- IBKR Trader Workstation (TWS): A comprehensive platform for intermediate to advanced traders, facilitating trading across multiple financial markets.
- IBKR Desktop: A streamlined desktop platform designed for beginner to intermediate traders, featuring a user-friendly interface.
- IBKR Mobile: A mobile trading platform offering on-demand access to global markets and tools.
- IBKR GlobalTrader: An app tailored for beginners, enabling trading in stocks, ETFs, options, and crypto.
- IBKR Client Portal: A web-based platform for easy account management and trading, suitable for all levels of traders.
For full-time traders using custom automated systems, Interactive Brokers provides additional API options. The IBKR IMPACT app caters to those interested in ESG-focused investing, showcasing IB’s commitment to versatility and innovation.
5. TD Ameritrade: Setting the Standard for U.S.-Based Customer Support
TD Ameritrade stands out as the pinnacle of customer support for U.S. traders, offering an unparalleled service experience delivered by industry experts.
Post its integration with Charles Schwab, TD Ameritrade has elevated its features for all American clients. This collaboration granted access to the acclaimed “thinkorswim” trading platform, expanding the online broker’s repository of educational resources and augmenting the level of specialized support available to traders.
Customer Service for U.S. Traders
TD Ameritrade excels in support, boasting industry-leading response times and knowledgeable assistance. U.S. clients enjoy access to a support desk manned by former floor traders well-versed in market nuances, available round the clock.
Whether it’s a query about a trade, a request for strategy optimization, or guidance on platform features, the team stands ready to provide expert advice.
Customer Support Methods
Accessible 24/7, TD Ameritrade’s customer support can be reached through various channels. Clients can utilize live chat, engage with support teams on social media platforms like Facebook and Twitter, send a fax, or make a phone call.
Catering to a diverse clientele, TD Ameritrade also offers multilingual customer support, including services in Spanish and Mandarin. For those preferring in-person interactions, visiting one of TD Ameritrade’s 175 branches across the U.S. during office hours is an option.
Trading Accounts
TD Ameritrade’s trading account doesn’t demand a minimum deposit, ensuring straightforward fund management with no extra fees. Variable spreads, starting at 1.0 pip, align with industry averages, and clients are exempt from commissions.
6. eToro: Pioneering Social and Copy Trading Platforms
eToro leads the pack in social and copy trading, providing a dynamic platform that empowers users to follow and replicate the trades of seasoned investors.
Copy Trading
Central to eToro’s innovation is the CopyTrader system, enabling users to effortlessly mimic the trading activities of selected traders. Users have the flexibility to filter through traders and copy them based on risk level, asset class, and other criteria, tailoring their copy trading experience.
Unlocking Opportunities with eToro’s Popular Investor Program
For accomplished traders, eToro’s Popular Investor Program presents an opportunity for additional income. As your strategy gains popularity and attracts more followers, you can earn fixed payments and rank bonuses. What sets this program apart? The earnings are tangible funds that can be withdrawn at any time.
Diversified Investment with ETFs and Stocks
eToro excels as a platform for building a long-term investment portfolio, offering 2,083 stocks and 269 ETFs across various sectors, including indices, dividends, bonds, and commodities. The Smart Portfolios feature provides a curated investment experience, grouping assets and markets based on strategic themes. This is particularly beneficial for investors seeking a diversified portfolio without the commitment of intensive day trading.
Crypto Market Exploration
For those intrigued by the crypto market, eToro supports over 24 cryptocurrencies, ranging from major players like Bitcoin and Ethereum to lesser-known altcoins. This extensive selection accommodates different risk appetites and investment strategies, enabling users to diversify their crypto investments.
7. Exploring Forex Markets with Trading.com
For U.S. traders seeking an exclusive focus on forex, Trading.com presents an enticing option. The T1 Account, designed for dedicated forex traders, offers access to a diverse range of over 70 currency pairs, all with a standard account structure and no commission fees. Notably, the account uses U.S. dollars as the base currency and maintains a low minimum deposit requirement, starting at just $50.
Leverage Options Tailored to Your Strategy
Trading.com provides flexibility in leverage options, varying based on the type of currency pair you’re trading. For major pairs like EUR/USD, maximum leverage reaches 50:1, while exotic pairs like USD/TRY are subject to a maximum leverage of 4:1. This tailored approach allows you to align your leverage strategy with the specific characteristics of each currency pair.
Platform Choices for Every Trader
Traders can choose between Trading.com’s proprietary platform and MetaTrader 5, catering to both simplicity and advanced features. The proprietary web trader platform and mobile app offer streamlined functionality for convenient trading from any location. Alternatively, MetaTrader 5 provides a sophisticated environment with advanced charting and research tools, including a research portal, newsfeed, daily updates, and an economic calendar—equipping you with all the essentials for developing intricate forex trading strategies.
8. Exploring Futures Trading with Plus500
For those delving into the world of futures trading, Plus500 emerges as a top choice, particularly for beginners. Boasting a user-friendly interface, Plus500 provides an accessible entry point that caters to traders at all experience levels.
Diverse Futures Markets
Plus500’s strength lies in its extensive array of futures markets, enabling traders to navigate sectors such as forex, cryptocurrencies, agriculture, metals, interest rates, energy, and equity index futures. This broad selection empowers traders to diversify their portfolios across different asset classes, aligning with their investment strategies and preferences.
Low Day Trading Margins
One of the standout features of Plus500 is its commitment to low day trading margins. This allows traders to effectively manage their investments, especially with micro and mini contracts. For instance, trading micro Bitcoin futures necessitates a mere $100 in margin. This low entry point enhances accessibility, making it an attractive option for those venturing into the cryptocurrency market.
Final Verdict on Plus500
In summary, Plus500 is distinguished by its user-friendly interface, making it an ideal platform for beginners in the futures trading realm. The availability of an extensive range of micro and mini contracts further contributes to its appeal, providing traders with flexibility and choice in their futures trading endeavors.
