The NFA regulated brokers recommended below is based on trader feedback, various reviews, Forex account features and overall popularity in the Forex trading community. US Residents can trade Forex only with Brokers who fulfill the following criteria:
- Registered as a Retail Foreign Exchange Dealer (RFED) by the Commodity Futures Trading Commission (CFTC)
- Regulated as a Futures Commission Merchant (FCM) by the National Futures Association (NFA)
|Broker Name||Minimum Deposit||Maximum Leverage||Minimum Lotsize||Trading Platforms||Execution Type||Demo Account||Broker Review|
|IG Group||US$ 250||1:50 (Majors) |
|Forex.com||US$ 250||1:50 (Majors) |
|0.01||MT4 (standard account only)|
WebTrader (DMA accounts)
|30 Days||Forex.com Review|
|Oanda||US$ 0||1:50 (Majors) |
|0.01||MT4||Market Maker||Non Expiring|
|ATC Brokers||US$ 2000||1:50 (Majors) |
|Interactive Brokers||US$10000||1:50 (Majors) |
|0.01||Desktop TWS (No MT4)||NA||Non Expiring||InterActive Review|
If you are not sure how to select between DMA, STP, ECN brokers or Market Maker, Click here to fully understand how each broker type works and how it will improve your trading bottom line.
Even though some major Forex broker have multiple regulatory licenses, most do not choose to do get regulated by NFA. One of the main reasons is that NFA requires locked capital of about $20 million to operate in the US (Regulators in other countries requires less than $1 million). The US market is just expensive for most Forex brokers to do business.
The heavily regulated environment in the US, FIFO rule and No hedging rule puts US Forex traders at a disadvantage to their global peers. Forex brokers rely on large volumes to make profits. Since NFA imposes a maximum leverage limitations of 1:50 on major pairs and 1:20 on minor pairs, lower trading volumes generated by US trader making it unprofitable for brokers.
US brokers are more profitable by offering stock trading which is still more popular among US traders.