Trading with foreign currencies is not possible without forex brokers. In forex trading, you are bidding on the future value of the currency pairs, such as EUR to USD, and when trading, you will want a broker that gives plenty of options with low fees. Here are the best forex brokers available in the US:
- eToro – The best trading platform
- Capital.com – Popular platform with zero commissions
- Interactive Brokers – Low trading fees and a wide range of products
- Forex.com – Best for earning cash back
- CMC Markets – Great web trading platform
- Saxo Bank – Best trading pairs offer
- TD Ameritrade – Best spread pricing platform
- XTB – Low trading costs
- IG – Best for trading CFDs
What to Look for When Searching for the Best Forex Brokers?
Reliability and trustworthiness are the top qualities you need to look for when picking the platform to trade in foreign currencies. To avoid potential money loss, the best is to choose regulated platforms. Since forex trading is decentralized, having a broker regulated by law will give you peace of mind.
Another important aspect when choosing among the sea of brokers is to find the one that offers a variety of services, a vast selection of FX pairs, and low commission and trading fees. And if you are a beginner, the platform with a demo account and educational tools is a game changer.
eToro – The Best Trading Platform
It is not a coincidence that the eToro platform often ends up on the top ten best forex brokers lists. This platform is specialized in social trading, followed by excellent educational tools for beginners and a user-friendly app. It is definitely great not only for forex trading but also for stock, crypto, and others. The platform gives access to 50 forex markets, with a large selection of currency from major to exotic ones. The eToro doesn’t charge conventional fees but charges a competitive spread that starts at one pip per slide, making this platform also the most affordable one.
The eToro will not charge you any transaction fees if you fund your account in USD once you open one.
eToro is excellent for day traders since it is a low-spread forex broker. When it comes to leverage on major currencies, it is 1:30, while for exotic ones is 1:20.
Overall the eToro is user-friendly and excellent for beginners but also has many features experienced traders appreciate.
Capital.com – Popular Platform With Zero Commissions
If you are looking for a low-margin broker with zero commissions, then Capital.com is your top choice. It has access to a wide range of markets, currencies included, and you can trade over 139 currencies. All currencies are traded via CFDs, and all fees are built into a spread that can be as low as 0.6 pips for EUR/USD in the peak hour. However, due to US regulations regarding CFDs trading, forex trading on this platform is not available in the US, but clients from other countries may trade.
The platform doesn’t charge any fees for depositing, withdrawing, or account opening. You can fund your account via bank transfer, credit card, and many other services, and the minimum deposit is $20.
Interactive Brokers – Low Trading Fees and a Wide Range of Products
Interactive Brokers are most popular among professional traders. It offers real-time quotes from the largest banks in the world. It also offers stock and crypto trading. Maximum leverage is 50:1, which is the biggest leverage broker can give in the US. The platform offers advanced research tools that offer real-time data and analysis of past data that can help you identify new opportunities. This is useful not only for beginners but also for new traders. There are no spreads, but you will be charged a commission based on your transaction size.
Forex.com – Best for Earning Cash Back
Forex.com is probably the first choice for many traders who have decided to start trading with forex. And the name Forex.com is not the only reason for this. The platform has been highly trusted among traders for years. It is one of the most regulated platforms there are with four tier-one jurisdictions. They offer numerous FX pairs to trade as well as trading with gold and silver. They offer flexible fees based on five different levels, from standard to pro. The usual spread for most pairs is 1.3 pips, even though the spread can sometimes be as low as 0.77 pips.
They offer a variety of platforms suited for anyone’s needs, including MetaTrader4.
The platform offers fast real-time pricing that gives traders confidence the price they put will be executed.
CMC Markets – Great Web Trading Platform
Not only is this platform great, but it is also the first ever online forex platform. You can make a trade with CFDs or by spread betting. The spread is highly competitive and can vary from 0.8 pips and more. The platform offers trading with cryptocurrencies, shares, commodities, and treasuries.
It has excellent research tools with more than 115 technical indicators you can look at and more than 70 chart patterns. The CMC Markets offers more than 300 currency pairs, and it is a regulated platform that will also separate your funds from CMC by transferring them to custody to reputable banks.
Saxo Bank – Best Trading Pairs Offer
Saxo Bank offers more than 40,000 different products as well as extensive educational tools and informational products to expand your knowledge. We don’t need to mention that Saxo Bank is highly regulated. They offer a variety of trading platforms and products, so to avoid any confusion, Saxo Bank offers their clients a SaxoTraderGO trading platform, where all the available products and markets are. They offer forex, stocks, bonds, mutual funds, cryptocurrencies, options, futures, and much more. The spread is competitive. It goes all the way to 0.6 pips.
TD Ameritrade – Best Spread Pricing Platform
TD Ameritrade offers a variety of products you can use for trading, including the thinkorswim trading platform and a couple of mobile apps. The platform allows commission-free trades with more than 70 currency pairs. But you can also trade BTC here. The maximum leverage is 50:1 on major currencies and 20:1 on exotic ones. All your fees will be built into the bidding price. What is great about this broker is that you can access thinkorswim via desktop and mobile apps. Here you will be able to see real-time economic news and the current situation on the market. They offer plenty of charts, currency trading maps, and much more so you can make an informative decision when investing.
XTB – Low Trading Costs
If you are looking for a platform with the lowest trading costs, then XTB is the one. With a $0 account minimum and ultra-low FX spread costs, this platform is great for retail investors. The platform supports 48 currency pairs, including Bitcoin, Litecoin, Ethereum, and some major foreign currencies. There are also commission-free stocks, ETFs, and much more. They charge a $10 monthly fee but also offer free bank wire payouts. It is an excellent platform if you are a beginner with the forex trade and you are on a budget.
IG – Best for Trading CFDs
IG platform lists CFDs short and long-term on over 17,000 markets with a 5% commission fee. Aside from this, you will also have access to 80-plus pairs on their platform and mobile app. Any turnover will be charged a 5% commission fee. Even though this may seem like a high fee, there is no doubt that on IG, you will get access to the most profitable CFDs opportunities. They have a user-friendly website with automated trading strategies, and for all withdrawals, you will be charged no fee. Also, if you decide to trade with ETF or stocks, you will be charged a 0.5% fee which is much more affordable.
Should You Do Forex Trading?
Like with any investment, there is a risk, and with some forex brokers, the minimum amount you can deposit goes as high as $20,000. So before you invest any large amount of money, ensure you understand the risks and know what you are investing in. If you don’t have any experience, the best is to go with platforms like eToro, which don’t charge large fees but have excellent learning tools. On eToro, you can open a demo account and learn how to trade.
If you decide to forex trade, make sure you invest as much money as you are willing to lose. Also, knowing the current economic conditions and news can only be a plus when trading with forex.