Three Promising Forex Brokers Accepting U.S.-based Traders
Forex trading is a popular form of trading across the world. While it is often thought to be otherwise, forex trading is not prohibited within the United States. In fact, there are many straightforward forex brokers that accept U.S.-based clients. Forex trading may be heavily regulated in the U.S., making it harder to find companies accepting U.S.-based clients, but it’s possible with the right traders.
Searching for the best forex brokers accepting U.S.-based clients is a daunting task. Here are three well-respected forex brokers accepting U.S.-based clients that you should consider:
OANDA is a well-respected and reviewed brokerage that accepts U.S.-based clients. When deciding which brokers to choose, OANDA offers unique pros and cons that can make it appealing to beginners:
Research: OANDA aids its clients in the trading world by offering strong research tools, up-to-date news, and balanced market analysis.
Ease of use: OANDA is ranked highly for its ease of use and, as a result, they are great for beginners in the trading field.
Lackluster spreads: Unfortunately, OANDA’s spreads are far below average, meaning the difference between their bid prices and ask prices rarely get that low compared to their competitors.
No account protection: U.S.-based clients do not have negative balance protection with OANDA. Should their accounts drop below zero, they will owe money to OANDA.
TD Ameritrade is a well-established broker that has 11 million clients and serves as a part of the Charles Schwab Corporation. TD Ameritrade also allows forex trading and accepts U.S.-based clients. They do have their pros and cons when it comes to this, however:
Low trading fees: Traders using TD Ameritrade do not have to worry about spending their earnings on trading fees, as they are considerably low. This is beneficial to beginners who are learning and are not yet achieving big trades.
Superb multimedia offering: TD Ameritrade maintains a YouTube channel with informative advice and educational videos. That’s matched to other guidance tools that are useful to traders, whether they are beginners or experienced traders.
No copy trading: Traders are unable to easily mimic the trades of other traders. This can be a negative for beginners, as copy trading is often used to help people learn about the process and best practices.
Not focused on forex: TD Ameritrade’s live video broadcasting focuses more on equity markets than forex trading, so they may not be the best forex-only broker.
Interactive Brokers is the largest electronic trading platform in the United States. They deal with different types of trading, including forex, and in this category, they are one of the few brokers that accept U.S.-based clients due to strict regulations over forex in the United States. Here are their pros and cons:
Low margin rates: Compared to other brokers, their interest on margin loans is considerably low.
Low-commission trading: Interactive Brokers charge their traders little to nothing on their trades, as they intend to aid investors in minimizing the cost.
Not friendly for beginners: Unfortunately for beginners, Interactive Brokers has a complicated platform that is not easy to understand. As such, this platform is best suited for experienced traders.
Research tool fees: While the tools are useful, some of them are restricted behind a paywall.
When considering these U.S.-accepting brokers, be sure to evaluate what you expect to gain through forex trading and then decide which company offers the features that best suit your plans.