Best Stock/Forex Brokers USA [UPDATED 2021]

New technological advances these days are giving a chance to ordinary people to accumulate stocks and gain from financial assets in ways that have never been seen before. 

The influence of trading apps on the market for this new generation is still being evaluated, however, after the so-called “GameStonk” (GameStop peaking for hundreds of USD per share after Reddit) and the incredible success of platforms such as eToro, the retail sector shouldn’t be underestimated. 

That’s why retail brokers and social trading platforms are getting stronger in the United States too, and many Americans are wondering which one is the best Stock and Forex broker in the USA.

And we are here to answer them.

Before You Start 

In order to start trading with financial assets in the United States, you’ll have to choose a broker and open a trading account. The process to open it is quite similar across brokers, and it will require you to provide and upload: 

  • A proof of identity: passport (preferred), ID (such as a driver’s license)
  • A proof or residence: usually a bank statement with your current address

Once you have been verified, a process that usually takes a few minutes, you’ll have the chance to put your capital in any assets provided by the selected broker.

Regulation in the US

As many people may wonder, there are some legal issues which may concern this world, due to problems mostly related to the Forex market.

At the moment, there are many legit brokers and Forex trading is absolutely legal. What is not allowed right now in the United States though is CFDs trading

Top national financial regulators in the country are: 

  • FINRA (Financial Industry Regulatory Authority): is a private corporation that acts as an SRO (self-regulatory organization) and is the successor to the NASD (National Association of Securities Dealers, Inc.) and the member for regulation, enforcement and arbitration operations of the NYSE (New York Stock Exchange).
  • SEC (Security and Exchange Commission): is a large independent agency of the USA and was created as a result of the 1920s stock market crash in order to protect both investors and the national banking system.
  • CFTC (Commodity Futures Trading Commission): is an independent agency of the US government founded in 1974 in order to regulate the US derivatives markets. 
  • NFA (National Futures Association): is an independent self-regulatory organization designated by the aforementioned CFTC as a registered futures association with a mandate to safeguard the integrity of the derivative market in the USA.

To verify if an online broker is regulated in the USA, you can check it on the aforementioned regulatory entities websites.

Trading Levels and Safety

Choosing the right broker may differ from person to person also on the basis of your trading level and financial knowledge. In case you are a beginner, choosing a low-risk broker with low minimum deposit would be the smartest idea. 

Furthermore, choosing a broker which supports a negative balance protection system would shield new users from going into negative balance during high volatility periods on the market, from bad investments or big leverage. 

Top 7 Stock And Forex Brokers In The USA

Once we realized that Stock and Forex online trading is legal, the next natural question would be: who’s the best broker in the USA?

  1. IG Markets

The top of our list is taken by one the oldest brokers still available.

Founded in  1974 by Stuart Wheeler as a spread betting business, its first incarnation took the name of IG Index (Investors Gold Index) and allowed people to trade gold prices instead of buying actual lingots. In 2000, it became IG Group and shares were listed for the first time on the London Stock Exchange.

While evolving constantly since then, it complies with all the US regulations in order to keep its position of main importance for the US-based traders. As a matter of fact, it possesses a CTFC license and is NFA regulated (#0509630).

IG Markets has a minimum deposit of $250, which is a little price to pay in order to receive one of the best brokerage services in the world. 

Furthermore, it offers an excellent 0.8 pips spread.

BASIC INFO:

  • Regulations: FSA, MAS, FINMA, FCA, CFTC, MIFID-ESMA, ASIC, FMA, FSCA, DFSA
  • Trading Platforms: Proprietary Web Platform, MAC Platforms
  • Minimum Deposit: $250
  1. Interactive Brokers

Interactive Brokers is one of the best brokers available around the world right now with a main focus on the Forex market, while having at the same time many interesting assets on their platform which includes options, metals, currency pairs and indices. 

The proprietary platform itself is remarkable and offers all traders a variety of advanced tools which may be used for deep analysis and trading techniques.

Interactive Brokers are highly regulated, and complies with many financial regulators such as CTFC, NFA (#0392970) and SEC (#8-47257). Plus, they are also a FINRA member.

Its offering in terms of account is reduced in two main typologies, which are the LBKR Lite and LBKR Pro. Both accounts do not require a minimum deposit, while Pro-account has a $10 fee per month. 

Interactive Brokers includes a variety of features which may fit for the most experienced traders, while their spreads start from 0.1 pips.

BASIC INFO:

  • Regulations: MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC, SEC, CYSEC, Offshore
  • Trading Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms
  • Minimum Deposit: $0
  1. Forex.com

This broker is one of the (if not the) most recognizable Forex brokers in the US. 

Forex.com is NFA regulated (#0339826) and CTFC licensed with an intriguing selection of account types. Its low spreads start from 0.2 pips and include a DMA (Direct Market Access) account.

As for the United States, its offer is one of the most competitive on the territory in terms of spreads among US Forex and Stocks brokers. Aside from the top FX currency pairs available in the financial market, It offers a wide-range of trading options such as metals (like gold and silver) and futures trading.

Minimum deposit for this broker starts from $1,000 to open a Standard account or Commission account, while DMA accounts start from $25,000. Every active trader has also access to many benefits such as reduced or zero fees and cash rebates.

BASIC INFO:

  • Regulations: FSA, FCA, CFTC, MIFID-ESMA, IIROC, SFC
  • Trading Platforms: MT4 Desktop, MT4 Web, Proprietary Desktop Platform, Proprietary Web Platform
  • Minimum Deposit: $0
  1. eToro

Internationally speaking, eTro is one of the most famous Stock and Forex brokers available in the world. 

It started to offer its services in 2008 and implemented its famous proprietary platform in 2010, however,  United States residents were only able to open a trading  account with eToro as of 2018. They are a FinCEN and CTFC regulated broker and are able now to offer their services in the United States.

To start investing with eToro you will have to start with a minimum deposit of $200, but you can also try out its platform also with a full demo account. Opening this typology of account is a huge learning opportunity for all those novice traders which are approaching the financial market for the first time.

Newbies may also gain support from the community itself, which is built on a concept called Social Trading. Basically, you will have the chance  of practicing with the trading platform or try out some techniques you have learned along the road. 

Due to the regulatory requirements of the States, although being a top Forex Broker In other countries, in the US the focus has shifted on crypto trading. That’s why you’ll find more than 100 crypto assets to deposit in the eToroX crypto wallet.

BASIC INFO:

  • Regulations: FCA, CFTC, MIFID-ESMA, ASIC, CYSEC
  • Trading Platforms: Proprietary Web Platform
  • Minimum Deposit: $200
  1.  Nadex

Another one of the top US Forex brokers, Nadex is regulated by the CTF and is a member of the aforementioned IG group. 

You can open a retail account with a minimum deposit of only $250, while a free full demo is available at any time. 

On its proprietary platform you will also find out a unique fee system for Forex trading, and Binary options trading is extremely popular within the community. To protect its traders’ funds, it has implemented a negative balance protection system which is perfect for both beginners and advanced traders’ financial safety.

BASIC INFO:

  • Regulations: CFTC, SEC
  • Trading Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms
  • Minimum Deposit: $250
  1. Oanda

While making progress toward becoming more relevant in the US, Oanda is already an online trading industry leader, especially in the Forex world. 

It offers more than 70 FX currency pairs which includes the possibility to trade in cross currency pairs alongside with major currency pairs. While major pairs are extremely popular in the trader’s community. cross pairs are becoming more and more attractive due to their risk/reward opportunities. With that being said, the latter should be avoided if you are a beginner, in order to keep your funds safe and waiting for a more consistent investment. 

Oanda also offers their new traders some powerful educational tools which includes MarketPulse, many financial and technical analysis, and a variety of research resources provided by Oanda team experts. 

Account types are mainly two: standard account and premium account. Standard accounts do not require a minimum deposit and it’s perfect to start investing with Oanda, while Premium requires a minimum deposit of $2,000. The high costs of Premium account gives high benefits for the trader, and offers bonuses such as lower spreads and discounted operational fees.

It is a well-regulated broker under the legal umbrella of both the NFA (#325821) and CFTC. 

BASIC INFO:

  • Regulations: FSA, MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC
  • Trading Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MT4
  • Minimum Deposit: $0
  1. TD Ameritrade

A top choice when choosing between the best US stocks and Forex brokers, TD Ameritrade is one of the most recognizable names in this territory. 

TD Ameritrade complies with SEC (##01-69469 & #8-23395) and CFTC, while being at the same time a FINRA member.

The broker offers two different account types: standard account and margin account. Standard account is considered for real trading, while the margin account it’s thought for gaining maximum profit from leveraged trading. 

Minimum deposit for opening a Standard account is going to be $50, while margin requires a minimum deposit of $2,000.

As well as for other account types, there are two main trading platform options to choose from: their own proprietary platform and Thinkorswim trading platform. 


BASIC INFO:

  • Regulations: CFTC, SEC
  • Trading Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC platforms
  • Minimum Deposit: $0

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