Because increased regulation by the CFTC and NFA caused several high-profile U.S. forex brokers to exit the market, it’s become much easier to identify the very best. In addition, higher capital requirements have made it difficult for some brokers to compete. Regulatory differences between the U.S. and the rest of the world include lower leverage limits, 50:1 compared to 400:1, and reduced access to other over-the-counter products like CFD contracts. The best U.S. forex brokers are well capitalized, understand the changing regulatory environment, and offer U.S. clients access to multiple trading products.
Thinkorswim is part of TD Ameritrade, the mega online brokerage house. U.S. customers can be confident that it is well capitalized and well regulated. This is because TD Ameritrade complies with regulations not only from FINRA, but also the NFA, SIPIC and the SEC. The thinkorswim platform conveniently enables you to trade forex, stocks, futures, and options all from one account, so U.S. clients can trade domestic stocks or interest rate futures alongside their forex trades. The ability to stress test your positions or see a real-time plot of your p/l are two examples of powerful trading tools that make thinkorswim one of the best U.S. forex brokers. These tools are accessed through any type of computer and almost any mobile device.
Forex.com is another great choice for U.S. forex brokers, but for slightly different reasons. Forex.com, a well-capitalized part of GAIN Capital Group in New Jersey, doesn’t provide robust access to other investment markets, but it is a cutting-edge Electronic Communications Network (ECN). This is important because many forex brokers are able to trade for their own accounts by trading on the buy and sell side. Sometimes, the broker can trade against the client. U.S. customers are generally accustomed to dealing with regulated exchanges such as the New York Stock Exchange and tend to favor the transparency that the ECN has over other execution methods.
Manhattan Beach (MB) Trading is a U.S. forex broker headquartered in California. Because it’s domestic, MB Trading understands the changing regulatory environment in the U.S. and has adapted well to them. MB Trading is well capitalized and has won several awards from Barron’s and other magazines for its platforms. Like thinkorswim, MB gives U.S. clients the ability to trade forex, futures, stocks, and options from one account on their powerful Lightwave platform.