US Forex Brokers – Top USA Forex Brokers and Forex Trading Platforms

US flagThe Forex Market is undoubtedly one of the largest financial markets in the world and the amount of currency that is traded online is really phenomenal. The average trade on a single day has now reached to a staggering amount of $ trillion.

The majority of the daily trade comes under “Individual Retail Trading” which is still not large but growing with every passing day.

A majority of Forex traders are US citizens and FX trading is really popular over there considering the fact that some other online investment forms are strictly prohibited.

A number of different Forex brokers have mushroomed lately that offer FX trading to the Americans. It includes the operators who are based in the country as well as the brokers who are situated offshore.

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Deposit: $50
Leverage: 1000:1

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The Most Traded Currency is the United States Dollar

There is no denying the fact that US Dollar is the most sought after and most traded currency in the global market. It is to be noted that the currency participates in more than 85 percent of all Forex trade volumes. It is the biggest reason why this currency is coupled with other major currencies. Even the minor currencies are seen pairing up with US Dollar for trading in the Forex market.

    US Dollar is by far the most traded currency in the world

    The trading symbol in Forex for US dollar is USD

    US Dollar is one of the most traded currencies in currency pair

Preferring the Appropriate US Forex Broker

A number of Americans engage in Forex trading primarily because US Dollar is a very powerful and important currency in the global market. A slight increase or the decrease in trade activities in Forex market can have a very big change in the overall value of the dollar. This, in turn, can make a trader rich or he might lose a significant amount of money.

It is really a very difficult task to recognise the value of one currency and how it rises or falls with respect to other currencies. There is no tool that can predict the movement in price the whole time. Accuracy and better decision making come with experience and how often one is trading in the Forex market. To make the most out of your FX trading, it is imperative that you find a legitimate and reliable US Forex Broker.

Legal Issues

The first and the most important thing about US Forex trading is its legal aspect. It is recommended that you do all your trading through a regulated Forex broker who has the license to offer trading services to the US traders. Only then you will be fully protected from any kind of scam and you will have your money worth the cause.

NFA or Natural Futures Association is the main body that looks after the regulation of several financial markets including forex trading in the USA. It is a non-profit and independent organisation that was founded way back in 1982. Apart from financial institutions based in the USA and registered brokers, dealers and holdings, retail foreign exchange dealers (RFED) and future commission merchants (FCM) are also allowed to participate in FX trading; provided they are registered with NFA.

The duties and functions of NFA are discussed below:

    Issuing license to approved Forex brokers

    Combating scam and tackling fraudulent activities

    Making sure Forex brokers adhere to capital standards

    Ensuring all Forex brokers submit regular reports as required by law

Things to Notice

As stated above, in order for a Forex broker to provide its services in the USA, it should be registered with NFA. But it is only just a pre-requirement so as to say that the broker has to adhere to certain standards for being reliable.

There is a legal binding on part of the US traders not to resort to trading with very high leverage ratios. In this respect, you should not expect a lot of variances. However, there are a number of other things that needs to be taken into consideration which is listed below:

    Accepted payment methods

    Customer support

    Available trade platforms

    Currency pairs

    Spreads

    Fees and commissions

    Welcome Bonus

    Minimum required deposit

The minimum amount that is to be deposited in the trading account varies from one broker to another. If you are planning to start trading by depositing huge volumes of money, there is no issue in finding US brokers. But if you don’t have sufficient capital and can afford to invest say $50 or $100 as minimum deposit amount, then you will have to eliminate brokers that require high deposit amount.

Most of the US Forex brokers offer a special promotion nowadays called Welcome Bonus which is awarded to the concerned new trader after their first deposit. It is to be noted that bonus of lower amount is always profitable if all the terms and conditions are favourable and no strings are attached.

Most Forex brokers do not charge any fee or commission on trade. In fact, they get their profit through spreads. However, there are a few operators that charge a fee if you are making a deposit through certain payment gateways.

The brokers are able to book the profit from the difference between the two positions or the spread.

Hence, you should always select a US Forex broker that offers lower spreads. Like for instance there is one broker that offers a spread of 1.1 on trading EUR/USD currency pair and the other broker is charging a spread of 1.5, it is always advisable to go with the first option.

These days, most of the brokers are offering multiple trading platforms to the traders. Apart from providing a downloadable and online platform, there is a distinction between mobile as well as the PC based platform. In fact, there is one very important difference that needs to be remembered. A broker can offer a basic set of features with simple or complex trade options. It is always advisable to have an option in mind because it gives you the flexibility to choose. Like for instance, when you get experienced, you will be able to opt for complex trading where you can start with floating spreads and earn higher profits in return.

When we are talking about Forex trading, customer support is not the first thing that comes to mind. You should know that Forex is an online service industry and customer support plays a very important role in it. Traders trust the brokers with all their life because their hard earned money is at stake. So it is expected on part of the brokers to provide high-quality customer service in return. It would be preferred if the operator offers two to three different kinds of communication like email, video chat, telephone etc where traders can interact with a broker. Also, timely resolution of the problem goes a long way in making a happy and satisfied customer.

We have already mentioned above that there are some US Forex brokers that might charge some amount of fees for making deposits and/or withdrawals. But the majority of brokers do not charge any such fees. Brokers accept a wide range of payment methods like electronic wire transfer, VISA, MasterCard, Credit Cards, eWallet services etc. It is to be noted that the trader will have to verify his/her identity before the first withdrawal can be processed. It is binding on the Forex brokers to verify the legal obligations before payments can be processed. Also, you need to provide proof of residency and it goes without the saying that you should be a resident of the USA who is legally residing in the country.

Frequently Asked Questions

1. Are American citizens allowed to trade Forex online?

2. Are profits generated from Forex trading taxable in the US?

3. Am I allowed to trade Forex currency pairs which do not include the United States Dollar?

4. What is the maximum leverage ratio which I can have on major currency pairs?

5. What is the definition of a Foreign Exchange trader according to the US laws?