The Internet has had a major influence on almost all industries, and that is an undeniable fact. It has completely changed the face of business by introducing a virtual platform, which is just as efficient as the physical market.

Communication technology is continuously evolving reducing the distance between people who live in entirely different parts of the world. Nowadays, we do not even have to think twice before contacting the friend who lives a continent apart. There has never been a better time for online trading to flourish because the community has immense potential to grow.

 

If you are looking to try your hand at online trading, then you have a fair number of options to choose from. However, the one sector that has seen a sharp rise in popularity in the last few years is Forex trading. It involves exchanging foreign currencies at rates that are influenced by the ever-changing exchange rates.

 

One of the main reasons why Forex appeals to so many people is that is valid for people across the world, and hence there are limited restrictions as to the growth of the platform. There is no reason why you should think becoming a good Forex trader is easy, but you will surely enjoy the journey to being successful in the field if you do not mind taking a few risks here and there.

 

Things to Know about US Forex Brokers:

The United States has a large number of Forex users, and the number is predicted to increase in the coming years. The US dollar is considered to be the most powerful currency in the world because of its demand, and this means that American traders can function from the point of advantage.

US Forex brokers have to be careful about maintaining their business and staying ethical because the foreign exchange market is carefully monitored by the government. The Federal Reserve is in charge of fixing the exchange rate of the U.S. dollar while the United States Treasury Department also plays a major role.

Unless you probe a little deep, you will not find anything striking about USA forex brokers because they go about their work just like brokers from other major countries do. The USA has a set of laws that dictate the relationship between citizens and USA Forex brokers. If a trader has net actives over 10 million USD, he or she can be considered an exception to these rules. US Forex brokers also have anti-hedging programmes by default.

To make a Forex brokerage business legitimate in the United States, one has to take some important steps. All US Forex brokers have to be registered under the NFA or CFTC, and they are bound to follow all the regulations and stringent restrictions imposed by these bodies.

When registering their firm, US brokers are required to submit the following to the NFA:

  • The online form 7-R
  • A detailed financial statement
  • Business Continuity and Disaster Recovery Procedures
  • Anti-Money Laundering Procedures
  • Promotional Materials
  • Supervision of Associated Persons Procedures
  • A Source of Assets Letter
  • Customer Complaint Procedures
  • An application fee of $500 which cannot be refunded under any circumstance.
  • Retail Foreign Exchange Dealer Membership Dues.

 

While this step was taken to ensure the safety of US traders, it can prove to be convenient for all clients who want a little more flexibility.  For example, NFA regulated brokers have to keep their leverage restricted to 50:1 which can be troublesome. Moreover, these broker offices have to maintain detailed records and submit reports periodically.

Which broker should you go for?

Being a Forex trader, you should have complete liberty to choose what kind of a broker you want to employ. If you are an American citizen, then you have a number of options to choose from.

Strictly Regulated broker:

US-based brokers must follow the rules given by the National Futures Association and the Commodity Futures Trading Commission. Since their official permissions and licenses depend on these bodies, they cannot afford to ignore the regulations and lose permission to practice in the long run. Such powers. Following these obligatory standards might not prove to be easy for most Forex brokers in the USA, but they do not have a choice in the matter.

Moreover, the CFTC wants to maintain as much transparency and financial stability as possible in the Forex market so that regular clients do not face any difficulty in case some problem presents itself. They want to cut off all scams and frauds at the very root, and having these rules is helps make the work easier.

If you are an experienced Forex trader, you might feel a little suffocated, but beginners should not face any problem. In fact, a strictly regulated broker might prove to be beneficial for someone who is just starting out in Forex and is hence vulnerable to greedy brokers who want to extract money. There are pros and cons that you should consider before choosing these brokers.

 

Offshore Broker:

Another common option that US traders usually go for is hiring an offshore broker who does not have to adhere to the rules that are valid on US soil. They have no obligation to follow the standards and can give you the service you want without any qualms. You will not have any trouble getting in contact with them in today’s day and age.

In fact, more and more brokerage firms are expanding their services to all parts of the world. You might stay in the United States but hire a broker who operates from different country altogether. Offshore brokers are not necessarily better than US brokers, but sometimes they are easier to work with.

You can look up Forex brokers in the UK and Australia who will not tie down with their rules. More and more Americans are slowly switching over to offshore brokers because of the overall convenience factor.

 

What should an US trader keep in mind before choosing a US broker?

Remember that it is your own money that you will be investing in Forex. Choosing a good broker can make or break your career in the trading business so do not hurry through it. Conduct some individual research and go through recommendations from people you trust before taking the final call. You will not regret it.

Keep the following in mind when choosing the broker.

  1. Security and credibility:

US Forex brokers usually have a high level of security since they are registered with regularity bodies. What seems like an inconvenient is actually helpful because it allows distinguishing between legitimate businesses and scams.

  1. Deposit and Withdrawal Facilities:

Professional FX brokers will let you deposit and withdraw your funds whenever you want with the least amount of trouble. After all, they are your profits, and you are in charge of what you want to do with them. Broker are simply managers who are supposed to facilitate trading. They should ensure that the withdrawal process is as smooth as possible. Make sure you compare the brokers you are considering in this respect.

  1. Examine their online presence:

Forex trading is an online activity which means that your broker must have a good trading platform to function from.  It should be user-friendly and filled with tools that will help you improve your trading game.

  1. Customer Service:

Since Forex trading involves people from all over the world at any given point in time, a broker’s customer support should ideally be available 24*7. Everyone knows that communicating with a live person who can make an immediate effort to solve your problem is much more convenient than dealing with an auto attendant with its prefixed responses. Make sure that you find out the kinds of customer service a broker offers before you do the final hiring.

  1. Leverage, Commissions, and Spreads:

US-based brokers are restricted when it comes to leverage, but you will have freedom of choice if you are going for an offshore company. Since leverage can help traders improve their winning odds, it is important to take it into consideration when you are choosing a Forex broker. Do not forget to find out more about a company’s commission policies before you commit.

 

Top 3 Regulated Forex Broker for US clients

Research can be tedious, which is why we have done some of the work for you. The following regulated Forex brokers are some of the best options available in the market.

  1. Forex. Com:

One of the most efficient Forex brokers out there, this company impresses with their effort to keep their clients happy. They do not overcharge and keep their prices competitive but affordable. Their main objective is to make you realize your true potential as a trader, and they provide all the tools you might need to that end.

With Forex.com, you can always remain one step ahead of everyone in the game because they provide real-time market analysis along with actionable market insights. If you are a beginner, who needs help to decipher real-time trade signals, then you can simply consult their website.

Forex.com does not want to steal your control over your money. Instead, it wants to maximize the control you have over your funds by providing advanced forex trading platforms which can be optimized as necessary. They have proved their reliability over a long period of time, and hence are definitely worth a shot. If you are looking for a Forex broker who will keep you in touch with the latest trends and help you make better choices when it comes to Forex account, then this broker is surely a great option.

The next time you have trouble coming up with a strategy, simply consult them.

 

 

  1. OANDA.com

Another Forex broker worthy of your trust, Oanda gives quality service that you will not regret subscribing to. They handle all your trades with individual attention so that your game is always on point.

They are especially popular because they offer tighter spreads which make your life much easier. Moreover, their custom pricing strategy for premium accounts is very helpful for those on a budget.

You should definitely check out OANDA’s Forex and CFD online trading platform which offers swift and exceptional execution.

OANDA also lets you automate your trading strategies by offering tools like REST and FIX APIs. Their collection of innovative analytical tools is surely going to make trading more convenient for you.

As a broker, they score brownie points because they have ensured that the money transfer process remains simple. They use the latest financial technology to make all transactions transparent and reliable.

 

  1. ATC Broker

ATC Broker is easily one of the best Forex brokers available in the United States. They never act as counterpart to their client’s trades and ensure that life is simple for you as a trader.

Since the Financial Conduct Authority has authorized ATC Brokers Limited, they are strictly bound by regulations, which help keep the clients safe. You can be assured of your security when you hand over your money to them. Their direct API order execution even lets you participate as a Maker and Taker.

Their pricing strategy is pretty competitive but they give you your money’s worth by obtaining narrow spreads on the major currency pairs.

ATC Broker uses advanced MT4 Pro software that offers full back office access. You will be able to connect your software to the ECN aggregation engine very easily.

 

 

 

If you want to be a Forex trader in the United States, then you should start making an effort from today. Brokers across the country and even offshore are just waiting for you to approach them so they can start helping you become successful in the long run. Do not harbour unrealistic dreams of becoming a millionaire overnight or you will make mistakes that will set you back financially. Keep aside your capital, create an account, hire a broker and start trading so you can learn from different experiences.

Happy Forex Trading!

 

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