US Based Forex Brokers

• Tweet

• Tweet

Not everyone wants to trust their money to a two bit broker based in some far off land, unregulated and unavailable when there’s a problem. I know how you feel, I had reservations about joining eToro a reputable broker based in Cyprus.

So to help you out we’ve created a list of US based Forex brokers, this list isn’t as big as it would have been a few years ago. Recent legislation regarding the limit on the amount of leverage offered means a number of smaller brokers couldn’t compete and have gone to the wall.

The upside to this means the brokers that remain are of very high quality or at least belong to large financial institutions.

All Forex brokers based in the US are heavily regulated and aren’t allowed to offer leverage any higher than 1:50.

If you’re not sure how retail Forex brokers work, basically if you go long on a mini USD/GBP the broker will wait until he’s sold 10 minis in that particular currency pair, he them backs up those trades with a corresponding regular trade in the spot market. He makes his money on the spread.

A typical mini currency spread is 3 pips for popular currency pairs whereas a full regular spread is around 1 pip, the difference is profit to the Forex broker.

This is happening many thousands of times a minute and your broker is likely buying many thousands of regular trades to back up hundreds of thousands of mini trades. Volume is everything in Forex.

This of course allows a situation to develop in which a broker doesn’t have to back up your trades because he knows your going to lose. The broker can accentuate this by stacking the odds firmly in his favor. He does this by offering ridiculous levels of leverage.

If you’re trading minis using 1:500 leverage, you’re guaranteed to lose your deposit within two to three trades. The broker is aware of this so doesn’t need to back your trades up on the spot market. He simply banks your deposit once the markets moved against you; without an actual currency trade taking place.

To prevent this practice from happening the US Government imposed a cap on the amount of leverage that can be offered by US brokers, thus forcing them to back trades up on the regular spot market. This is the reason why all US Forex brokers are limited to offering 1:50 leverage.

Below you’ll find a list of US based Forex brokers, you can see there are vast differences between minimum position sizes and min account sizes. This is because some of these brokers specialize in the institutional market.

Hotspot for instance isn’t a broker suitable for beginners or even intermediate traders. Beginners would be much better off joining Zecco who offer smaller position sizes and a lower account minimum along with better training and support.

Forex Broker	Min Account Size	Min Position Size	Max Leverage	Regulated	Training & Education	Overall Rating
Zecco Forex	$500	0.01	1:50
Forex.com	$250	0.1	1:50
FX Solutions	$250	0.1	1:50
Interbank FX	$250	0.01	1:50
MB Trading	$400	0.1	1:50
OANDA	$1	0.001	1:50
Hotspot FX	$7500	1	1:50
FXCM	$2000	1	1:50

You may also like:

1. Forex Trading Brokers
2. How to Choose a Reputable Forex Broker
3. Forex Brokers List
4. Forex Brokerage Firms