Is forex trading legal in the United States?
es, forex trading is legal in the US, but heavily regulated by the Commodity Futures Trading Commission (CFTC) and NFA. Choose a licensed broker for compliance.
Quick insights
Key considerations for trading in the US
Forex trading involves risk. Educate yourself thoroughly before investing real money.
- Educate yourself on forex trading.
- Choose a regulated by the National Futures Association NFA /CFTC.
- Start with a demo account to practice.
- Understand your account balance, leverage, and risk management.
- Develop a trading strategy.
3 Top Forex brokers
Are you looking for the best forex brokers USA, Are you ready to trade forex in the US?
Forex Broker comparison – US focus – 2024
Choosing the right forex broker depends on your experience level, trading style, and budget. Here’s a quick recap to help you decide!
| Feature | Cobra Trading | IG Broker | Interactive Brokers (IBKR) |
|---|---|---|---|
| Established year | 2003 | 1974 | 1973 |
| Regulation | NFA, FINRA, SIPC | Varies (FCA, CFTC & NFA for US) | SEC, FINRA, CFTC (US Focus) |
| Account Types | Individual, Joint, IRA, Corporate, etc. | Leveraged (Spread Betting, CFDs), Non-Leveraged (Share Dealing) | Individual, Joint, Retirement, Institutional, etc. |
| Minimum Deposit | $25,000+ | No minimum (varies by deposit method) | $0 |
| Trading Style | Active Day Trading | Beginner to Advanced | Active to Institutional Investors |
| Assets Available | Stocks, Options | Forex, Stocks, CFDs (Limited Options & Futures), ETFs, Commodities | Stocks, ETFs, Options, Futures, Bonds, Mutual Funds, Crypto |
| Commissions & Fees | Tiered commissions, exchange fees, software fees, inactivity fees | Variable spreads, CFD commissions, currency conversion fee, inactivity fee | Fixed/Tiered commissions (IBKR Pro), commission-free US stocks & ETFs (IBKR Lite), margin interest |
| Margin | Available | Available (leverage varies by instrument & regulator) | Available |
| Demo Account | Yes (2 weeks) | Yes (unlimited) | Yes ($1 million virtual currency) |
| Customer Support | Email, Phone, Live Chat | Phone, Email (24/5) | Email, Chat, and Phone (24/7 in various regions) |
Cobra trading review
Cobra Trading caters to experienced and active traders, offering direct market access, multiple platforms, and a focus on short selling. However, high minimum deposits may deter beginners or those with limited capital.
- Pros – Advanced platforms, direct market access
- Cons – High minimum deposit, limited resources for beginners
| Feature | Cobra Trading |
|---|---|
| Established year | 2003 |
| Regulation | NFA,FINRA,SIPC. |
| Trading Platforms | DAS Trader Pro,Sterling Trader Pro,Cobra Trader Pro. |
| Minimum Deposit | Standard Accounts: $25,000Pattern Day Trader (PDT) Accounts: $27,000 (US Residents) $30,000 (International) |
| Assets Available | Stocks, Options |
| Account Types | IndividualJoint (JTWROS)IRA (Traditional & Roth)CorporateLLCTrustPartnershipMiscellaneous |
| Fees & Commissions | Equity Commissions: Tiered ($0.0015 – $0.003 per share)Option Commissions: Tiered ($0.30 – $0.50 per contract)Exchange fees: $0.05 to $0.55 per contractSoftware fees: $100 to $150 per month (waived for high-volume traders)Market data: Starts at $18/month (Basic)Routing fees: Varies (rebates for adding liquidity, charges for removing)Inactivity fee: $15/quarterACAT transfer (outgoing): $95Annual IRA fee: $35Locate fees: 1 and 5 cents per share (may be negotiable)Margin interest: 8% |
| Education & Research | Limited resources are available on the Cobra Trading website. May need to rely on external sources. |
| Customer Support | Email – same-day responsePhone – toll-free, Mon-Fri 7 – 4:30 CSTLive Chat – business hours |
| Demo Account | Yes – 2 weeks |
IG Broker review
IG is a well-established and regulated broker offering a wide range of investment products and services. It caters to both beginner and experienced traders with user-friendly platforms, educational resources, and competitive fees.
However, keep in mind the lack of negative balance protection for US clients and leverage restrictions in some regions.
- Pros – User-friendly platforms, educational resources, wide asset selection
- Cons – Leverage restrictions (US), CFD fees
| Feature | IG broker |
|---|---|
| Established year | 1974 |
| Regulation | FCA, ASIC, BaFin, FINMA, CFTC & NFA |
| Account Types | Leveraged (Spread Betting, CFDs), Non-Leveraged (Share Dealing, Stocks & Shares ISA, Smart Portfolio, Smart ISA Portfolio) |
| Demo Account | Yes (virtual currency, no time limit, amount may vary) |
| Minimum Deposit | No minimum for bank transfers, which varies by region for other methods (e.g., $300 for credit/debit cards and PayPal in the US) |
| Withdrawal & Deposit Methods | Wire TransferDebit CardCredit CardPayPal, VisaMasterCard |
| Fees & Commissions | The flat platform fee is waivableDiscounted fees for frequent tradersCurrency conversion fee 0.5%Inactivity fee – $12/month after 24 months of no trading activityWire withdrawal fee ($15),Rebates for high-volume traders US |
| Leverage | Varies by instrument and regulator (1:20 to 1:30 common for major forex in most regions) |
| Assets & Instruments | Over 19,500 Forex, Stocks, CFDs, Options (Limited), Futures (Limited), ETFs, Commodities, Bonds |
| Customer Service | 24/5 by phone and email |
Interactive Brokers (IBKR) review
Ideal for active and institutional investors seeking a vast selection of investment options, low commissions (especially with IBKR Lite), and access to margin. The powerful TWS platform might be overwhelming for beginners.
- Pros – Low commissions (IBKR Lite), vast investment options, margin rates
- Cons – Complex platform (TWS) for beginners
| Feature | Interactive broker |
|---|---|
| Company | Interactive Brokers |
| Founded | 1973 |
| Regulation | SEC, FINRA, FCA, NYSE, FINMA, CFTC, SFC, MAS, CBI, IIROC, JFSA, and MiFID. |
| Account Types | IndividualJointRetirementCustodialTrustFamily OfficeSmall BusinessAdvisorHedge FundMutual FundInstitutional |
| Minimum Deposit | $0 |
| Investment Options | StocksETFsOptionsFuturesBondsMutual FundsCryptocurrencies |
| Trading Platforms | IBKR Trader Workstation (TWS)IBKR DesktopIBKR Global TraderIBKR MobileIBKR Client Portal |
| Commissions | IBKR Pro: Fixed or tiered fees (e.g., $0.005 per share, tiered options fees).IBKR Lite: commission-free trades for US stocks & ETFs |
| Margin Rates | Lower than the industry average (e.g., up to 49% lower) |
| Demo Account | Yes, with virtual currency ($1,000,000) |
| Customer Service | Email, Chat, and Phone (24/7 in various regions) |
Conclusion
Don’t let broker selection hold you back. Selecting the right forex broker sets the foundation for your trading success. Cobra Trading, IG, and Interactive Brokers are all strong contenders, with features tailored to various trading styles.
By prioritizing regulatory compliance, account features, and your individual preferences, you can confidently navigate the forex market. To learn more about these brokers and understand deposit requirements, visit our FAQ section. Happy trading!
Pro Tip
Frequently Asked Questions
1. How do I choose a forex broker?
To ensure a safe and secure trading experience,
- Always double-check the broker’s licensing and regulation.
- Compare features that matter to you, like account types, platforms, tools, and research.
- Finally, read reviews to evaluate pricing, product range, and how well they suit your trading goals.
By following these steps, you’ll be well on your way to finding the perfect forex broker for your needs.
2. Interactive brokers, cobra trading and IG broker from this which broker does have the minimum deposit?
Cobra trading minimum deposit is $25,000+
3. Which broker does have the demo account with virtual currency?
Interactive brokers offer demo accounts with $1 million virtual currency.
