With numerous forex brokers spring up in quick succession, there are just a few that are reputable and have the required track record of performance.
This article narrows mainly to Forex Brokers that accept U.S. clients.
If you’re outside the U.S. you may want to check this post on the best ECN Forex Brokers for traders and investors in other jurisdictions.
The top Forex brokers that accept U.S. clients (traders) are:
— Interactive Brokers;
— TD Ameritrade;
— FOREX.com;
— Saxo Bank;
— OANDA;
— eToro; and
— IG.
The list was derived after considering how each broker perform under the under-listed criteria:
— Supported withdrawal destinations;
— Supported funding means;
— Tradable item options;
— Trading platform;
— Withdrawal fee;
— Deposit; and
— Trial
— Cons
More details about each broker will be provided in the next section.
SEE ALSO: 10 Best Low-Budget Forex Courses on Udemy
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1. Interactive Brokers
Interactive Brokers is considered one of the outstanding brokers partly because of how it fares in:
— Supported funding means;
— Tradable item options;
— Withdrawal fee; and
— Trial.
Supported funding means
An Interactive Brokers trading account may be funded with many currencies, including USD, EUR, JPY, GBP, AUD, CHF, and CAD.
That is in contrast to most other brokers whose trading accounts may be funded in only the USD (and maybe the EUR and the GBP).
Tradable item options
Customers of Interactive Brokers may trade in a wide range of forex pairs. There are about 23 currency pairs you may trade-in.
That is in contrast to most other brokers who offer much lesser amounts of tradable items.
Withdrawal fee
Withdrawing your earnings comes at no charge.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Trial
Interactive Brokers enables customers to trade with imaginary money. This enables customers to practice without losing money. Customers are given $1,000,000 worth of imaginary money.
That is in contrast to most other brokers who offer no means of practicing your trading skills.
Cons
Interactive Brokers is outstanding, but it has its cons.
The following are the cons
1. Creating an account may take up to 3 days.
2. The broker’s trading platform has relatively limited tools.
3. The trading fees are relatively high.
4. Fees are charged if you don’t trade in a long while.
2. TD Ameritrade
TD Ameritrade is considered one of the outstanding brokers partly because of how it fares in:
— Trading platform;
— Withdrawal fee; and
— Deposit.
Trading platform
TD Ameritrade has a very convenient trading platform. Elaborating —
— The trading platform is stress-free.
— The trading platform has suitable interfaces for phones, tablets, and desktops (laptops).
This is in contrast to most other brokers who offer less convenient trading platforms.
Withdrawal fee
Withdrawing your earnings comes at no charge.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Deposit
Funding your trading account comes with no fee.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Cons
1. The means of funding a trading account are limited.
2. TD Ameritrade is mainly for the US. Trading in non-US currencies or trading as a non-US resident is almost impossible.
SEE ALSO: 6 Psychological Pitfalls of Trading the Forex Market
3. FOREX.com
FOREX.com is considered one of the outstanding brokers partly because of how it fares in:
— Supported withdrawal destinations;
— Tradable item options;
— Trading platform;
— Withdrawal fee; and
— Deposit.
Supported withdrawal destinations
Your earnings may be withdrawn into many places. You may withdraw into an electronic wallet, a credit card, a debit card, or a bank account.
That is in contrast to most other brokers who support withdrawals into much smaller ranges of places.
Tradable item options
Customers of FOREX.com may trade in a wide range of forex pairs. There are about 91 currency pairs you may trade-in.
That is in contrast to most other brokers who offer much lesser amounts of tradable items.
Trading platform
FOREX.com has a very convenient trading platform. Elaborating —
— The trading platform is stress-free.
— The trading platform has suitable interfaces for phones, tablets, and desktops (laptops).
This is in contrast to most other brokers who offer less convenient trading platforms.
Withdrawal fee
Withdrawing your earnings comes at no charge.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Deposit
Funding your trading account comes with no fee.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Cons
1. Creating an account may take up to 3 days.
2. FOREX.com doesn’t offer CFD trading.
3. FOREX.com doesn’t offer copy trading.
4. Fees are charged if you don’t trade in a long while.
4. Saxo Bank
Saxo Bank is considered one of the outstanding brokers partly because of how it fares in:
— Supported funding means;
— Tradable item options; and
— Trial.
Supported funding means
A Saxo Bank trading account may be funded with about 26 currencies, including USD, EUR, JPY, GBP, AUD, CHF, and CAD.
That is in contrast to most other brokers whose trading accounts may be funded in only the USD (and maybe the EUR and the GBP).
Tradable item options
Customers of Saxo Bank may trade in a wide range of items. There are about 182 currency spot pairs you may trade-in.
That is in contrast to most other brokers who offer much lesser amounts of tradable items.
Trial
Saxo Bank enables customers to trade with imaginary money. This enables customers to practice without losing money. Customers are given $100,000 worth of imaginary money.
That is in contrast to most other brokers who offer no means of practicing your trading skills.
Cons
1. Saxo Bank demands a high minimum deposit. You’ll need at least $10,000.
2. The trading fees are relatively high.
3. Fees are charged if you don’t trade in a long while.
SEE ALSO: 7 Best Currency Pairs to Trade for Beginners
SEE ALSO: What are the Best Days of the Week to Trade Forex?
5. OANDA
OANDA is considered one of the outstanding brokers partly because of how it fares in:
— Tradable item options;
— Trading platform;
— Withdrawal fee; and
— Trial.
Tradable item options
Customers of OANDA may trade in a wide range of items. There are about 38 currency spot pairs you may trade-in.
That is in contrast to most other brokers who offer much lesser amounts of tradable items.
Trading platform
OANDA has a very convenient trading platform. Elaborating —
— The trading platform is stress-free.
— The trading platform has suitable interfaces for phones, tablets, and desktops (laptops).
Withdrawal fee
Withdrawing your earnings comes at no charge.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Trial
OANDA enables customers to trade with imaginary money. This enables customers to practice without losing money.
That is in contrast to most other brokers who offer no means of practicing your trading skills.
Cons
1. The trading fees for CFDs are relatively high.
6. eToro
eToro is considered one of the outstanding brokers partly because of how it fares in:
— Supported withdrawal destinations;
— Withdrawal fee;
— Deposit; and
— Trial.
Supported withdrawal destinations
Your earnings may be withdrawn into many places. You may withdraw into an electronic wallet, a credit card, a debit card, or a bank account.
That is in contrast to most other brokers who support withdrawals into much smaller ranges of places.
Tradable item options
Customers of eToro may trade in a wide range of items. There are about 2,000 assets you may trade-in.
That is in contrast to most other brokers who offer much lesser amounts of tradable items.
Withdrawal fee
Withdrawing your earnings comes at no charge.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Deposit
Funding your trading account comes with no fee.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Trial
eToro enables customers to trade with imaginary money. This enables customers to practice without losing money. Customers are given $100,000 worth of imaginary money.
That is in contrast to most other brokers who offer no means of practicing your trading skills.
Cons
1. Funding of trading account can be done with only the USD.
2. Fees are charged if you don’t trade in a long while.
7. IG
IG is considered one of the outstanding brokers partly because of how it fares in:
— Tradable item options;
— Deposit; and
— Trial.
Tradable item options
Customers of IG may trade in a wide range of items. There are about 80 currency pairs you may trade-in.
That is in contrast to most other brokers who offer much lesser amounts of tradable items.
Deposit
Funding your trading account comes with no fee.
That is in contrast to most other brokers who charge amounts ranging from tens of dollars to thousands of dollars.
Trial
IG enables customers to trade with imaginary money. This enables customers to practice without losing money. Customers are given $20,000 worth of imaginary money.
That is in contrast to most other brokers who offer no means of practicing your trading skills.
Cons
1. Creating an account may take up to 3 days.
2. Depositing money into your trading account is generally free, but those not done with the USD are not.
3. Fees are charged if you don’t trade in a long while.
Final Thoughts
Kindly note, the order in which the brokers have been listed doesn’t matter. Elaborating —
— Even though Interactive Brokers was first listed, that doesn’t mean we considered the No 1 best.
— Even though IG was listed last, that doesn’t mean it’s the least good.
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