US Forex Brokers

US Forex brokers… Most reliable?

US

You can put the question this way; becoming a US Forex broker isn’t as simple as registering an off-shore brokerage.
The answer lies in the regulatory requirements.All US brokers must be registered with NFA (National Futures Association).

While registration itself isn’t the issue, being a member of NFA regulated brokers group requires adherence to the strict NFA rules.

US Forex brokers list

BrokerMinimum DepositMaximum LeverageTypeFunding method
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ATC Brokers$500050:1ECN/STP & STPBank wire, check, debit card
CMS Forex$25050:1Market makerBank wire, check
FIPFX$50050:1Market makerBank wire
FIPFX GLOBAL$500400:1STP & Market makerBank wire
FastBrokers$250050:1ECN/STP & Market maker Bank wire, check
FOREXer$200500:1Market makerBank wire
Forex.com$25050:1Market makerBank wire, check, debit card
Fortress Capital$200050:1STPBank wire, debit card
FXCM$200050:1STPBank wire, check, debit card, ACH
GAIN Capital Groupno50:1ECN/STP & Market makerBank wire, check, online check, debit card
iClickNTrade$250500:1STPBank wire, credit card, debit card
IKON Global Markets$100050:1ECN/STP & Market makerBank wire
Interactive Brokersno40:1ECN/STPBank wire, check, ACH
MB Trading$40050:1ECN/STPBank wire, check, debit card, ACH
M2 Forex$200050:1Market makerBank wire, check, debit card, ACH (soon)
OANDA$150:1Market makerBank wire, check, debit card
Thinkorswim$50050:1Market makerBank wire, check, ACH
TradeKing$50050:1Market makerBank wire, check, debit card, ACH
TradersChoiceFX$25050:1ECN/STP & STP & Market makerBank wire, check, debit card
TradeStation Securities$200050:1DMA/STPBank wire, check

Requirements to become a US Forex broker

All US Forex brokers must be registered with NFA.
All introducing Forex brokers in the US must also be registered with NFA.

Forex broker – RFED – Retail Foreign Exchange Dealer is required to submit the following to NFA:

1. Online Form 7-R
2. Documents:
– Financial statement,

– Anti-Money Laundering Procedures,
– Business Continuity and Disaster Recovery Procedures,
– Promotional Material Procedures,

– Supervision of Associated Persons Procedures,
– Customer Complaint Procedures,
– Source of Assets Letter, describing the source of the firm’s current assets

3. A non-refundable application fee of $500
4. Retail Foreign Exchange Dealer Membership Dues of $125,000

For a complete list of any additional other documents, please refer to:
http://www.nfa.futures.org/NFA-registration/rfed/index.HTML

US Forex brokers with high leverage?

All US brokers are required to provide leverage no higher that 50:1 according to 50:1 Leverage CFTC Rules. This leverage will be offered to all US residents without exception.

Non-US residents, who seek to open an account with the US based broker, might be able to get a higher leverage for their trading accounts. This option is often available when a broker has multiple branches around the globe.

Among such brokers are:

ATC Brokers – 200:1 leverage for non-US accounts

CitiFX Pro – 100:1 leverage for non-US accounts

CMS Forex – 100:1 leverage for non-US accounts

FastBrokers – 200:1 leverage for non-US accounts

FOREX.com – 200:1 leverage for non-US accounts

US Forex brokers vs other brokers

So, what’s the difference between US and other Forex brokers?

The two striking differences are:
– leverage options
– regulatory regime

US brokers offer a pretty low leverage 50:1 (NFA rules requirements) comparing to other brokers, who can shoot up to 1000:1 or higher with no consequences. This makes US brokers less competitive in the eyes of many novice traders, who generally need a larger leverage boost from the start.

Forex brokers in the US are amongst the most regulated brokers in the world. The regime and penalties by NFA are high and strict,thus no one essentially wants to go off the marked path. This fact certainly provides the highest level of trust to the US brokers.

Alternatives to US Forex brokers

Are there good alternatives to US Forex companies?
Although traders won’t find better regulated Forex brokers than those in the United States, other countries to consider are: UK, Australia and Switzerland.

 

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