3 Best US Forex Brokers for 2023 (2024)

The Commodity Futures Trading Commission (CFTC) is a governmental regulatory organization in the United States that is authorized by Congress as the principal financial markets regulator for U.S. derivatives markets. In this role, the CFTC aims to uphold market integrity, implement efficient regulations for market participants, and reduce the potential for fraud.

The CFTC oversees a wide range of markets; commodities futures and options, foreign exchange, exchange-traded securities, and securities traded in OTC markets all come under the CFTC’s purview.

In addition to the CFTC, registrants typically must also hold regulatory status with the National Futures Association (NFA), which is a member-based self-regulatory organization (SRO) that is designated by the CFTC to help enforce compliance. Forex brokers that operate in the U.S. must be registered with the CFTC and are highly regulated, making them among the most trusted brokers globally.

We’ve put together a snapshot of some important forex concepts to help get you acquainted with the basics of forex trading:

• Forex trading is the exchange of one currency for another between two parties at an agreed-upon exchange rate. One side of the trade is buying units of the base currency pair, and the other side is selling that same quantity at a mutually-agreed upon price.
• Forex Brokers are companies that are licensed by a regulatory agency (for U.S. traders, by the CFTC and NFA) to grant you the ability to buy or sell currencies through an online trading platform.
• Currency pairs are based on the price of one currency (the counter currency) for a specific quantity of units of the other (the base currency). The currency code on the left side of the pair (EUR/USD) denotes what you are buying or selling, and the one on the right (EUR/USD) represents the price – or rate – at which the base currency is being bought or sold.
• Trade sizes are expressed in units. For example, one U.S. dollar is a single unit of the USD. A standard lot is typically 100,000 units of base currency. A mini lot is 10,000 units, and a micro lot is 1,000 units.
• Spreads are typically measured in a unit called a “pip”, and they communicate the difference between the “bid” price and the “ask” price for a currency pair. Spreads, commissions, and rollover fees are ways for forex brokers to make money from forex trades. Our guide to the best zero spread brokers can help you find forex brokers with the lowest spreads in the industry.

Yes, forex trading is legal in the U.S. and regulated by the Commodity Futures Trading Commission (CFTC). Forex brokers in the U.S. are required to register as Futures Commission Merchants (FCMs) and Forex Dealer Members (FDMs) with the CFTC and NFA. In addition to complying with CFTC regulations and NFA member rules, brokers that offer forex trading to retail clients in the U.S. must maintain at least $20 million in regulatory capital as a Retail Forex Exchange Dealer (RFED) with the CFTC (and as a member of the NFA). These stringent regulatory requirements have made the U.S. one of the most trusted regulatory hubs for forex traders.

According to the CFTC’s most recent regulatory data (as of October 31st, 2022), there are 62 registered Futures Commission Merchants (FCMs) in the U.S., and at least six of those FCMs hold sufficient regulatory capital and the required licenses to legally offer forex trading to U.S. residents. Based on the CFTC’s own data, the following brokers offer legal forex trading in the U.S.:

• IG - Legally available to retail clients in the U.S.
• FOREX.com - Legally available to retail clients in the U.S.
• OANDA - Legally available to retail clients in the U.S.
• TD Ameritrade - Legally available to retail clients in the U.S.
• Interactive Brokers - Legally available in the U.S., but only to institutional clients.
• Trading.com - (U.S. brand under XM Group’s parent company, Trading Point) - Legally available to retail clients in the U.S.

To start trading forex in the U.S., it’s important to choose a forex broker that is well-regulated and licensed in the U.S. by the CFTC and the NFA. Once you’ve chosen a regulated forex broker, you can use these next steps as a guide to start trading forex in the U.S.:

1. Account setup. Complete your forex broker’s account application process. Make sure to read through any applicable terms and conditions.
2. Deposit funds. Once your account is set up, your new brokerage account needs to be funded. Brokers usually have multiple available deposit methods, so pick the funding method that works best for you. PayPal is a popular option for many forex traders, find out which brokers support it as a payment method by reading our PayPal guide for forex traders.
3. Learn how to use the trading platform. It’s always a good idea to start out with a demo account (sometimes known as virtual trading) to familiarize yourself with the broker’s trading platform.
4. Enter the forex market. Choose your desired trade size, and open a long position by clicking buy on a given currency, or open a short position by clicking sell.
5. Develop a trading plan. Create a trading strategy that will enable you to trade consistently while pursuing your trading goals and managing risks. This is one of the most important factors that will determine your long-term success as a trader.

Questions to ask yourself when developing a trading strategy include:

• What are my trading goals, and how do they fit into my lifestyle?
• How will I find trading opportunities?
• How long do I want to be in the market when I place a trade?
• What is my ideal trade size based on my expected trading duration and risk/reward thresholds?
• What is the most I want to risk on a trade?

Yes, U.S. residents and U.S. citizens must report their worldwide income in the U.S. – including any gains from forex trading. These can be taxed as capital gains (or may be treated as business income, if you have a corporate account). In any case, U.S. residents and/or citizens may be liable to pay taxes on any gains from forex trading – regardless of whether your broker sends you a form 1099-B.

It’s important to communicate to your tax professional the exact type of trading you are doing. For example, trading spot forex in the OTC markets may be treated differently (for tax purposes) than trading an exchange-traded forex futures contract, and certain forex contracts may be treated as a commodities contract (under Section 1256g), depending on the elections made by your tax professional.

IG is the best forex broker in the U.S. in 2023. In addition to being regulated by the CFTC and a member of the NFA, IG is publicly traded, well-capitalized, and holds more regulatory licenses around the world than any of the 60+ forex brokers we review on ForexBrokers.com. Simply put, IG is a well-regulated and highly trusted forex broker.

Check out a gallery of screenshots from IG's web trading platforms, taken by our research team during our product testing.

IG offers a wide range of asset classes beyond forex trading, and consistently ranks at the top of nearly all of the categories we factor into our forex broker reviews. Read our full-length review of IG to learn why we consider IG to be the top choice for U.S. forex traders.

When it comes to U.S.-regulated forex brokers, the best mobile trading app in 2023 is offered by IG. A range of powerful design innovations and trading tools set IG’s proprietary mobile app apart, such as trading signals (for U.S. traders who are interested in social copy trading), seamlessly integrated research, and a sophisticated order entry dialogue that makes managing trades a breeze. IG’s mobile app also features the most advanced charting I’ve ever used on a mobile device.

Check out a gallery of screenshots from IG's mobile trading apps, taken by our research team during our product testing.

In addition to its flagship mobile trading app, IG offers its standalone IG Academy app that features dedicated educational resources for beginners. To round out its mobile trading app offering, IG also offers the popular MetaTrader 4 (MT4) app (check out our full guide to MetaTrader).

Forex Risk Disclaimer

There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Read more on forex trading risks.