The foreign exchange market is an exciting place to trade, but you really need to do your research and stay on top of what’s happening in the world to be successful. The forex market can fluctuate widely in a matter of hours, so you will have to pay close attention so that you can strike while the iron is hot and get out when your base currency falls too much.
Whenever you trade in the forex market, you will need a quality broker that can handle all your orders and provide data to help you make the best decisions. Only forex brokers registered in the U.S. can provide services to the country’s residents. Here are the seven best U.S. forex brokers for 2021.
The number one best forex broker is Forex.com, which was founded in 2001 and is regulated by the Commodity Futures Trading Commission, the Financial Conduct Authority and the NFA, the self-regulatory organization for the U.S. derivatives industry. The broker accepts deposits via Visa, MasterCard or wire transfer and has a minimum deposit of $100.
Forex.com is an ECN broker, which means it uses electronic communications networks to provide direct access to other currencies in the forex markets. It is also an MM broker, or market maker, which means it actively quotes two-sided markets, providing offers and bids. Forex.com can also make trades for its own account.
Second on the list of the best U.S. forex brokers is eToro, which was founded in 2007 and is regulated by officials in the U.K., Australia, Cyprus and Spain. The company is an NDD and STP broker. NDD means “no dealing desk,” and NDD brokers offer a trading platform that provides open access to interbank market exchange rates.
eToro provides straight-through processing of forex trades and publishes different rates and prices than what market-making brokers publish. STP stands for “straight-through processing,” which means they send the trader’s orders straight to major banks for processing and fulfillment. eToro accepts deposits via Visa, MasterCard, PayPal, Yandex Money, Webmoney, Qiwi, Skrill, Neteller, Sberbank, Ukash, wire transfer and China UnionPay. The minimum deposit amount is $50.
Third on the list is IG, the oldest forex broker among the top seven U.S. forex brokers. The firm was founded in 1975 and is regulated by authorities in six different countries. IG is a DMA broker, which means it is a direct market access broker that allows traders to route their orders to specific exchanges directly. Traders can also route them to electronic communication networks and market makers.
IG is also an MM broker and accepts Visa and MasterCard for deposits with a minimum deposit amount of $0.
TD Ameritrade is regulated by the Securities Investor Protection Corporation, a non-profit organization that has recovered billions of dollars for investors. It is also regulated by FINRA. Founded in 1974, it accepts deposits via checks or wire transfers, with a minimum deposit of $2,000. Like IG, TD Ameritrade is a DMA broker.
Saxo Bank is an excellent forex broker, but one downside is that the minimum deposit amount is a massive $10,000. The firm was founded in 1992 and is an ECN and STP broker. Officials in several countries regulate Saxo Bank, and it accepts deposits via Visa, MasterCard and wire transfer.
OANDA was founded in 1996 and is regulated by officials in Australia and the U.K. It accepts Visa and MasterCard for deposits and has a minimum deposit of $1.
This firm is one of the most well-known names on the list, and it is almost as old as TD Ameritrade, having been founded in 1977. Interactive Brokers is regulated by the CFTC and the FCA and accepts checks and Bpay for deposits. Like Saxo Bank, the minimum deposit is $10,000. Interactive Brokers is an MM broker.
There are many forex brokers in the world, and most of them want to say they provide services in the U.S. However, not every broker is registered in the country, so it’s important to look for one that is. The forex brokers on this list have been prescreened, so you can trust that they provide the best services. Tapping into the forex market becomes much easier when you have an excellent broker.
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