How To Choose a Forex Broker as a US Trader?

You may have already heard that the US government regulates Forex brokers. However,  A broker’s license can be lost if they don’t follow rules.As a US trader you should also employ a thorough analysis considering numerous factors to find the best United States Forex broker.

Consider Several Factors

When choosing a US-registered forex broker, you should take into account several factors. It is important to remember that a US brokerage must have a minimum of $20 million in capital. Moreover, the leverage they can offer must be limited to one currency pair. Furthermore, they cannot use hedging strategies and can only have the leverage of 1:1000. They must also be registered with the National Futures Association . Moreover, you should look for an approved US Forex brokerage.  The best US Forex brokers are regulated by the NFA . You should always look for the US-registered forex brokerage with the best commission rates. They will help you to make a wise decision.

US Registered Brokers

If you are a beginner, you should check out a few US-registered brokers before making a decision. They should be regulated by the NFA. If they are, they will also be listed on the American regulatory agency’s website. You should look into the terms of the license, which is required to join this particular broker. You should not worry about the future of the currency. There is no reason not to try a US-registered forex brokerage.

Trading Costs: Spreads, Commissions, & Leverage

Spreads, and commissions (if charged) can make a substantial difference to your overall cost of trading, as these are going to be the biggest cost you face by far, unless you make very few trades and hold for the long term. It is important to be sure that you really know what spreads and commissions are going to really be – do not rely upon what you see in a broker’s demo account, as the spreads you see here typically do not reflect what you will face in a real, live money account.

Leverage – the amount that a broker will let you borrow to trade – is another critical issue. Almost every broker will offer quite generous leverage on Forex and many other asset classes, but if you are seeking high leverage, it is important to check the maximums allowed asset by asset.

Account Types

Some Forex brokers in the USA will offer their clients a choice of different types of accounts. The right choice of account type for you will probably depend upon the minimum deposit required, what you want to trade, and how often you trade.

Some general rules about which account type is going to be most suitable for you:

The Micro Account accommodates deposits lower than $500.

The Mini Account accommodates deposits lower than $10,000 and will be the more suitable vehicle for most retail Forex traders with more than $500 to deposit.

The Standard Account is most suitable for more experienced traders with more than $10,000 to deposit. There is little doubt that if you can afford it, the higher deposit you make, the better deal you will get on overall fees and other trading conditions.

Minimum Deposit

Most Forex brokers in the USA require a minimum deposit to accept a new customer. This is justifiable as brokers incur their own operational fixed costs in opening and maintaining a new account. Fortunately, minimum deposits required by the top Forex brokers in the USA tend to be low and affordable for most Americans, at ranges between approximately $100 and $250. It is important to remember that these minimums are not applied to ongoing account balances, they just mean that to open an account you must start by depositing a minimum amount.

Trading Apps

The traditional image of the Forex trader as glued to their laptop or PC is out of date. More people are trading from apps, not least because using a trading app allows you to monitor and trade markets no matter where you are or what time of day or night it is. This does not mean that app traders are glued to the market, it means they use apps intelligently by setting their trading apps to alert them when something interesting happens in the market.

Every Forex broker in the US will offer their own dedicated trading app and they are mostly reaching extremely high standards.

Customer Service

Person-to-person customer service is something that you will probably never need, but you do want to know that if you need it, it is there and at a high standard.

Fortunately, due to the small number and generally high reputations of US Forex brokers, and high expectations of customer service in American culture, you are unlikely to find that you will be lacking help if you reach out and ask for it – or even if you do not.

All Forex brokers for US citizens today have automated FAQ searches which should troubleshoot a solid majority of any operational difficulties you might encounter in your trading.

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