US Forex Brokers

Written by Christopher Lewis
Christopher Lewis
Christopher Lewis is a professional trader and author specialized in Forex and Crypto trading.
, | Updated: September 1, 2025

Forex trading is a global financial activity that enables individuals, businesses and institutions to exchange currencies. The practice has gained substantial popularity among traders in the United States. In the USA, the FX market operates within a strict regulatory framework designed to protect traders and ensure market integrity.

This comprehensive guide explores the US forex trading landscape, including the local regulators, which forms of FX trading are legal, and what restrictions may apply to domestic trading firms. We also provide tips on how to determine whether a given brokerage is reliable, together with our own ranking of carefully curated brands that may be suitable for USA traders.

Below is a list of the best Forex brokers regulated in the United States:

Top 5 Forex Brokers in the US

Brokers Compared by Spread

FX Brokers Deposit Method Comparison

Brand Minimum deposit
Plus500 US Not Available $100 (debit cards), $200 (wire transfers)
eToro Available $50 or $100 based on country ($10 for the UK)
Interactive Brokers Not Available $0
Forex.com Not Available $100

Forex Brokers by Regulator

Brand Maximum leverage
Plus500 US Not Available N/A
eToro Available 1:400 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:400 (FSAS | Retail Account)
Interactive Brokers Not Available 1:30 (ASIC | IBKR Lite), 1:30 (CBI | IBKR Lite), 1:30 (FCA | IBKR Lite), 1:25 (JFSA | IBKR Lite), 1:20 (MAS | IBKR Lite), 1:500 (Pro Account)
Forex.com Available 1:30 (ASIC), 1:50 (CFTC), 1:200 (CIMA), 1:30 (CIRO), 1:30 (CySEC), 1:30 (FCA), 1:200 (MAS), 1:400 (Pro Account), 1:25 (JFSA)

Forex Brokers Platform Availability

Brand FX pairs to trade
Plus500 US Not Available Proprietary Mobile
eToro Not Available Proprietary
Interactive Brokers Not Available Proprietary Mobile, Proprietary Web
Forex.com Available MetaTrader 4, MetaTrader 5

Comprehensive Comparison of the Best US Forex Brokers

Brand Min. Deposit Trading Platforms Spread Regulation Trustpilot
$100 (debit cards), $200 (wire transfers)
  • Proprietary Mobile
  • Plus500Futures
-
  • CFTC (United States)
$50 or $100 based on country ($10 for the UK)
  • eToro App
  • eToro CopyTrader
  • eToro Investing
AVG 1 pips
  • CySEC (Cyprus)
  • FCA (United Kingdom)
  • FRSA (United Arab Emirates)
  • FinCEN (United States)
  • FINRA (United States)
  • FSAS (Seychelles)
  • GFSC (Gibraltar)
  • AMF (France)
  • MFSA (Malta)
  • SEC (United States)
  • ASIC (Australia)
$0
  • Proprietary Mobile
  • Proprietary Web
MIN 0.2 pips
  • CFTC (United States)
  • CIRO (Canada)
  • FCA (United Kingdom)
  • JFSA (Japan)
  • MAS (Singapore)
  • HKSFC (Hong Kong)
  • ASIC (Australia)
  • SEBI (India)
  • CBI (Ireland)
$100
  • MetaTrader 4
  • MetaTrader 5
  • Forex.com
AVG 1.3 pips
  • CFTC (United States)
  • CIMA (Cayman Islands)
  • CIRO (Canada)
  • CySEC (Cyprus)
  • FCA (United Kingdom)
  • JFSA (Japan)
  • MAS (Singapore)

Forex trading in the USA encompasses various legal forms that cater to both retail and institutional investors. Each form comes with distinct characteristics and appeals to different trading styles and risk profiles:

  1. Spot Trading

    Spot trading involves the immediate purchase or sale of currency pairs at the prevailing exchange rate. This form of trading is highly liquid and widely preferred for its simplicity and rapid execution. Spot trading is ideal for traders seeking to capitalise on short-term price movements.

  2. Spread Betting on Currency Pairs

    Spread betting enables traders to speculate on whether a currency pair’s price will rise or fall. Though popular in certain regions, spread betting is less common in the USA owing to stricter regulation; however, it remains available in limited circumstances.

  3. Futures Contracts

    Futures contracts are agreements to buy or sell a currency at a fixed price on a future date. Forex futures, which are traded on regulated exchanges, are popular among institutional traders and hedgers who wish to lock in prices and reduce currency risk.

  4. Options Trading

    Forex options provide traders with the right, but not the obligation, to buy or sell a currency pair at a specified price before a set expiration date. These contracts offer flexible risk-management strategies and appeal to experienced traders.

  5. Forwards

    Forwards are customised agreements between two parties to exchange currencies at a specific rate on a future date. These contracts are typically traded over-the-counter (OTC) and cater to businesses aiming to hedge against currency risks.

Restrictions on Currency Trading in the USA

While Forex trading is legal and actively regulated in the USA, there are certain restrictions imposed to protect traders from excessive risks and fraudulent practices:

  • CFDs Involving Fiat and Cryptocurrency Crosses

    CFDs on fiat currencies are permitted under strict regulatory oversight, whereas CFDs on cryptocurrency crosses face more limitations. Regulators closely monitor these instruments because of their high volatility and speculative nature, which can lead to substantial trader losses.

  • Binary Options

    Binary options are prohibited for retail traders in the USA. These all-or-nothing instruments are deemed too risky and have been associated with high levels of fraud. The Commodity Futures Trading Commission (CFTC) actively enforces this ban to safeguard investors’ interests.

  • Leverage Caps

    Unlike in some other regions, leverage on retail Forex accounts in the USA is capped at 1:50 for major currency pairs and 1:20 for minor pairs. These restrictions aim to prevent excessive risk-taking and promote responsible trading practices.

Who Regulates Forex Trading in the USA?

Forex trading in the USA is subject to a robust regulatory framework overseen by multiple agencies:

  • Commodity Futures Trading Commission (CFTC)

    The CFTC is the primary regulator of Forex trading activities in the USA. It enforces compliance with financial laws and ensures transparency and fairness in the derivatives market, including Forex trading.

  • National Futures Association (NFA)

    The NFA acts as a self-regulatory organisation, overseeing Forex brokers and ensuring they adhere to stringent standards. All brokers offering Forex services to US clients must register with the NFA, which maintains a public database for broker verification.

  • Securities and Exchange Commission (SEC)

    While the SEC primarily oversees securities trading, it also plays a role in Forex trading when securities-based derivatives are involved.

The combination of CFTC and NFA oversight ensures that the Forex market operates with integrity, offering a high level of protection for retail and institutional traders alike.

Requirements for Forex Brokers in the USA

Forex brokers operating in the USA are required to comply with rigorous regulations designed to protect traders and maintain market integrity. Key requirements include:

  1. Registration and Licensing

    Brokers must register with the CFTC and become members of the NFA. This ensures they operate within the legal framework and adhere to industry standards.

  2. Negative Balance Protection

    Brokers are obligated to implement safeguards that prevent traders from losing more money than they have deposited. This feature is particularly important during periods of high market volatility.

  3. Investor Compensation Schemes

    Although not universally mandated, many brokers participate in compensation schemes that protect client funds in the event of insolvency, ensuring partial or full recovery of deposits.

  4. Leverage Restrictions

    Brokers must enforce leverage limits of 1:50 for major currency pairs and 1:20 for minors to mitigate excessive risk exposure for retail clients.

  5. Risk Disclaimers

    All marketing materials, trading platforms and communications must include clear risk warnings to educate clients about the inherent risks of Forex trading.

  6. Fund Segregation

    Brokers are required to maintain client funds in segregated accounts, separate from their operational funds. This ensures that client assets are safeguarded in case of broker default.

  7. Automated Margin Closeouts

    Brokers must have automated mechanisms in place to close out trading positions when account margins fall below pre-determined levels, minimising the risk of catastrophic losses for clients.

  8. Regular Reporting and Audits

    Forex brokers are subject to periodic reporting and audits by regulatory agencies to ensure compliance with financial and operational standards.

These stringent requirements collectively foster a secure and transparent trading environment for USA clients.

Are There Taxes on Profits from Forex Trading in the USA?

Yes, profits from Forex trading in the USA are taxable. Tax implications vary based on the type of trading activity and the trader’s tax filing status:

  • Section 1256 Contracts

    Forex traders who engage in certain types of regulated contracts may qualify for a tax rate of 60 per cent long-term and 40 per cent short-term gains, potentially offering favourable tax treatment compared with ordinary income rates.

  • Section 988 Contracts

    Traders who do not elect Section 1256 treatment must report Forex gains and losses as ordinary income or expenses under Section 988. This classification can result in higher tax rates but allows for unlimited loss deductions.

  • Reporting Obligations

    All Forex trading profits and losses must be reported accurately in tax returns. Failure to comply can result in penalties, audits, or legal consequences.

  • State Taxes

    Depending on the trader’s residence, state-level taxes may also apply to Forex trading profits. Consult a tax advisor for specific state tax obligations.

  • Tax Deductions

    Expenses related to Forex trading, such as platform fees, educational materials and advisory services, may be deductible, reducing the overall tax burden.

  • Consulting a tax professional is highly recommended to navigate the complexities of Forex trading taxation and ensure compliance with federal and state laws.

How to Identify Reliable Forex Brokers Accepting USA Clients

Choosing a trustworthy Forex broker is vital for a secure and successful trading experience. Consider the following criteria:

  • Regulatory Compliance

    Ensure the broker is registered with the CFTC and is a member of the NFA. Verify their credentials using the NFA’s online database to confirm their compliance status.

  • Transparent Pricing

    Look for brokers offering clear and upfront information on spreads, fees and commissions. Transparency in pricing allows traders to understand the cost of each trade and avoid unexpected charges.

  • Robust Security Measures

    Prioritise brokers that employ advanced security protocols, such as encryption, two-factor authentication and segregated client fund accounts, to safeguard client information and assets.

  • Customer Feedback

    Research online reviews and testimonials to gauge the broker’s reputation. Pay attention to comments about withdrawal processes, platform reliability and customer service responsiveness.

  • Trading Platforms and Tools

    Evaluate the broker’s trading platform for ease of use, available tools and features like charting capabilities, risk-management settings and mobile compatibility. Reliable brokers often provide demo accounts for testing purposes.

  • Leverage Options

    Verify that the broker complies with USA leverage caps while offering flexibility within those limits. Assess whether their leverage offerings align with your trading strategy and risk tolerance.

  • Customer Support

    Reliable brokers offer prompt and professional customer support across multiple channels, including live chat, email and phone. Ensure they provide assistance during trading hours and beyond.

  • Educational Resources

    Consider brokers that invest in trader education by offering webinars, tutorials and market analysis. Such resources empower traders to make informed decisions and improve their skills.

By evaluating brokers against these criteria, traders can confidently select a reliable partner to navigate the Forex market.

FAQ

Is Forex trading legal in the USA?

Yes. Forex trading is legal in the United States and is heavily regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). These regulatory bodies enforce strict rules to protect traders and ensure transparency in the market.

What is the maximum leverage available for USA traders?

In the USA, retail Forex traders are limited to a maximum leverage of 1:50 for major currency pairs and 1:20 for minor or exotic pairs. These caps are designed to reduce the financial risks associated with over-leveraging, helping traders avoid significant losses.

Can I trade Forex with offshore brokers?

While it is possible to trade with offshore brokers, doing so is not recommended for traders based in the USA. Offshore brokers may not comply with US regulatory standards, potentially leaving traders vulnerable to fraud or disputes with little legal recourse. For optimal safety, stick with brokers registered with the NFA.

What types of Forex accounts can I open in the USA?

Forex brokers in the USA typically offer multiple account types to suit different needs. These include standard accounts for experienced traders, mini accounts for moderate risk-takers and micro accounts ideal for beginners or those with limited capital. Each account type comes with its own features and margin requirements.

Can I use automated trading tools in the USA?

Yes. Automated trading systems are permitted, and many brokers offer support for trading algorithms and expert advisors (EAs). However, traders should thoroughly evaluate these tools for reliability and performance, as not all automated systems deliver consistent or profitable results.

Why You Should Trust RationalFX

When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 20 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.

What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.