Best forex broker in USA: The foreign currency exchange market, more commonly known as forex, is the most active and most liquid financial platform in the world. Whereas stock markets have a daily volume of about $28 billion on a daily basis, forex activity accounts for $5 trillion each day.
Since the forex market operates around the clock with a break that lasts for a few hours from Saturday to Sunday for traders in the United States, it is very convenient for traders who cannot keep an eye on Wall Street during its daytime trading sessions.
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Choosing the Best Forex Broker in USA for Beginners
When comparing the forex market to equity securities and commodities, learning forex is not very complicated, thus making it ideal for American traders who wish to get started.
If you can understand the concept of how you can profit from the difference in the value of foreign exchange currencies, understanding the forex market should not be too difficult.
What is important for beginner forex traders is to find the right retail broker to work with.
You can get started with researching the best forex brokers in USA for beginners; these financial service providers include a wealth of learning materials such as tutorials, guides, practice trading activities with real-time market values, and news commentary that includes useful explanations.
Analysis, opinions, and recommendations are provided by just about every broker, but the best forex broker in USA that caters to beginners will be mindful that clients will need to adhere to a learning curve.
What Beginner Forex Traders Need to Look For in a Broker
Before searching for the best forex broker in USA, American traders should know that their citizenship requires forex trading platforms to follow certain guidelines promulgated by financial regulators in the United States; for this reason, some brokers choose to not accept American clients.
We are talking about requirements related to anti-money laundering measures (AML) and Know Your Customer (KYC) practices. In other words, you have to provide identity information, and your trading activity will be reported to government agencies such as the Treasury Department and the Internal Revenue Service.
With the above in mind, the best forex broker in USA will be transparent about how it operates and how it manages your information.
You will be presented with disclosures that explain how the broker complies with AML and KYC measures, and you will have to agree to your information and trading activity being reported to the government.
Beginners looking for the best forex broker in USA will need to consider the following factors:
- Education
- Glossary of forex trading terms
- Webinars
- Video tutorials
- Training guides
- Demo accounts
Not all forex brokers will offer all of the above; however, this will not exclude them from being considered as candidates for the best forex broker in USA.
One feature that is non-negotiable is the demo account; even seasoned traders will insist on a practice account that lets them practice and get an overall feel for the platform without placing their own funds at risk.
With regard to the glossary of trading terms, some brokers do not feature one at all, but this is something that you can research on the internet.
Here’s another factor that certainly needs to be mentioned:
A platform should not overly push contracts for difference (CFD) instruments to beginner traders.
CFD are essentially options on a trade that have been simplified as being “in the money” or “out of the money.”
The underlying assets of CFD options are popular forex currency pairs such as EU/USD, and there are a couple of ways you can make money on them; if the price of CFD goes up above a certain level or if it goes below that level, so you’re essentially betting on a spread.
CFDs have timestamps for expiration, when they expire without hitting their targets, they are worthless to the investor.
The problem with CFDs is that they are highly speculative and should not be overly marketed to beginners.
One platform that many American traders flock to when starting out is Plus500, and they do so because of the intuitive interface and the user-friendly app.
Plus500 happens to specialize in CFD trading, so it may not be the most adequate for forex beginners.
Other platforms such as eToro, for example, do offer CFD trading, but it is not pushy in this regard, and it also provides social media features that let beginners copy trades from successful investors.
Forex on Meta Trader 4
There was a time when forex trading was only limited to the MetaTrader 4 or cTrader software applications that you had to download and install on your desktop computer.
The MT4 platform is not offered by all the forex brokers that cater to American beginners; there is an additional learning curve to MT4, but it is certainly worth taking the time to master.
The MT4 platform was initially released in 2005 by the MetaQuotes development team. These days, the platform has been upgraded to MT5, but most brokers still offer MT4 because of client preferences.
The two advantages of MT4 are the software charts and its automated trading features. If you plan on becoming an active forex trader, you will want to look for the best forex broker in USA MT4.
What you should know about the MT4 platform is that it is virtually the same for all brokers.
You can be expected to pay a little more in terms of transaction fees or minimum deposits, but this does not mean that you will not have access to education for beginners.
TD Ameritrade is an established provider of financial services that is often mentioned as the best forex broker in USA MT4.
The IG Group is a London-based platform that adheres to American financial regulations, and it offers quite a few currency pairs.
With TD Ameritrade, there are no web platforms for trading forex, which means that you either have to use the MT4 app on your desktop computer or smartphone, but the wealth of real-time information and technical indicators provided make it one of the most comprehensive tools on the market.
In 2020, TD Ameritrade has eliminated transaction fees, thus making it even more attractive for new traders.
Best US Forex Brokers: US regulated forex brokers
What is the best forex broker in usa:
- Forex.com
- IG
- TD Ameritrade
- thinkorswim
- Ally Invest
- ATC Brokers
- Oanda
- Nadex
- Forex.com
FOREX .com offers currency and metals trading with award winning trading platforms, tight spreads, quality executions, powerful trading tools and 24 hour live support.
Forex.com is considered safe because it has a long history, it is regulated by leading financial authorities, and its parent company is publicly traded. Disclaimer: CFDs are complex instruments and come with a high risk of losing money quickly due to leverage.
- IG Forex
IG is the world’s leading provider of CFD and Forex. We offer CFD trading in thousands of stocks as well as forex, indices, commodities, options and more.
Rated by Investopedia as the best Forex broker for US traders. IG provides customers with access to a wide range of markets, superior research and comprehensive customer training. IG accepts US clients, but forex only, and is registered with CFTC (US), NFA (US) and FCA (UK).
- TD Ameritrade
TD Ameritrade is a broker offering an electronic trading platform for trading financial assets including common stocks, preferred stocks, futures contracts, exchange traded funds, forex, options, cryptocurrency, mutual funds, income investments fixed, margin loans, and cash management services.
All brokerage accounts with TD Ameritrade are protected by the Securities Investor Protection Corporation. The SIPC was established by the US government; but today it is a private enterprise financed by the associated brokerage firms. Per account, the guarantee is $ 500,000. Half of this amount can be used for cash balances.