Top 3 Best forex brokers accepting US client for 2021

Trading forex in the United States has never been so easy as it's with other countries outside the US. Following the global economic crash that took place in 2008 which affected the US economy greatly. Given this fact, the US government decided to put together two regulating bodies that are meant for controlling the affairs of brokers in the US.

The two major forex brokerage regulatory firms in the US are the National Futures Association (NFA) and the commodities and futures trading commission (CFTC) which are put in place by the US government. The presence of strict regulations governing the US economy has made it a mandatory condition for all brokers who choose to operate within the US region to abide by the regulations of the NFA and the CFTC. With this regulation, No forex brokers are allowed to operate in the US unless they are registered with NFA and CFTC.

Even though the US financial regulation bodies have established the appointment of NFA and the CFTC to be the controlling unit for brokers. Many forex brokerage firms still find it hard to operate in the US even without accepting the US forex client to trade or register with their platform.

The Dodd-Frank wall street act signed by President Barrack Obama in 2010 has made it a tough situation for brokers to register with the NFA and the CFTC due to its high cost of investment. On a rough estimate, the total cost of obtaining authorised approval from the NFA and the CFTC is 20 million dollars.

Evaluating the cost of getting approved by NFA and CFTC many forex brokers prefer to avoid accepting clients from the US. And apart from this being the reason why forex brokers decide not to accept client from the US, there are some other restrictions which the Dodd-frank wall street Act placed on all forex brokers who choose to operate in the US such as;

US brokers shouldn't allow any form of hedging, rather they must implement FIFO (First In First Out), which means if you open more than one position on a currency pair, you must close the first open trade before opening the second one.

Also, They are not allowed to provide XAU/USD or XAG/USD as part of their trading assets to clients within the US.

However, the brokers who can cut through the clutter and meet the requirements of the regulating bodies controlling the affairs of brokers in the US, are the ones most aspiring US forex traders tend to go with.

Without much ado let's dive further into the discovery of the top 3 best forex brokers accepting US client for 2021 and other frequently asked questions that are related to their mode of operation 

1. Forex.com

Forex.com also known as Gain Capital was regarded as the fastest and reliable brokerage platform that provides all the necessary trading tools that you'll require to succeed in your trading journey. Forex.com has been operating in the US since 2001 and the National Futures Association (NFA) and the commodities and futures trading commission (CFTC) authorised forex.com to operate and provide trading service for US clients.

Some of the frequently asked questions related to forex.com are;

What are the requirements for opening an account with forex.com?

All you need to get started with forex.com, are your name, address and your tax ID number which will be used to verify your identity,  

What is forex.com minimum deposit?

100 dollars is the minimum deposit required for trading with forex.com

Withdrawal fee

Forex.com permits multiple deposit and withdrawal options, both the withdrawal and deposit require zero charges. But, withdrawal is not allowed with some credit cards. With forex.com US clients can also make deposits from their PayPal account.

Account types

Forex.com only offers three account types, which vary in pricing structure and use almost similar trading platforms. Below is the list of the three trading account types forex.com offer to their clients;

Forex.com Account this type of account provides a Higher spread and no commission and it is operated on Forex.com's trading platforms

MetaTrader Account carries a Higher spread with no commission and it uses the MT4 trading platform.

DMA Account maintains a Lower spread and commission fee of $2 per lot and per trade, it is regulated on Forex.com's trading platform.

Trading instrument

At Forex.com, you can only trade with forex, CFDs and cryptos. Other asset classes, like real stocks or ETF funds, are not available.

2. IG

IG was founded in the United Kingdom in 1974 and is one of the largest and the best CFD brokers in the world. In 2020 IG was voted as the best brokerage firm of the year. The NFA and the CFTC licensed the operation of IG in the US. Just like every other broker, IG also offers the best investment service, plus excellent forex education and trading tools that'll help strengthen your trading experience. 

Some of the most frequently asked questions about the IG broker are listed below;

What are the requirements for opening an account with IG?

IG's account opening is straightforward and it's entirely carried out on IG digital platform. IG only requires five Legal documents before the authorisation of the client's account. The client name, email address, date of birth, proof of residence and employment status. While it's easy and straightforward to register with IG online, clients must also be aware that account verification takes around 3 business days, to get approved which is very much slower compared to other brokers.

What is the IG minimum deposit?

IG accepts fund deposits through bank transfers, credit cards/debit cards and PayPal. The only credit and debit cards allow on the IG platform are; Maestro, Visa, Electron, MasterCard, Visa, Discover

and other prepaid cards. The minimum deposit is $0 for bank transfers and $300/€300/￡250 for credit/debit cards and PayPal.

Withdrawal fee

There is no fee for withdrawals, it's only the inactivity fee that'll be charged after 2 years. While on the other hand, the forex and CFD fees are very high on IG when compared with other brokers.

Account types

IG offers a wide variety of trading accounts such as forex, CFDs and options. IG clients who reside within the US region can only have a forex trading account with the IG broker.

Trading instrument

IG is primarily a CFD and forex broker. US clients can only trade with forex products.

3. TD Ameritrade 

TD Ameritrade is the largest US-based forex broker established in 1975. TD Ameritrade is regulated by the NFA and the CFTC which makes it a reliable broker the US client can put their trust in. As an online broker TD Ameritrade offers its service to client's who are from the US and some other few countries. With TD you can only make payment through bank deposit as TD Ameritrade doesn't accept credit/debit cards and electronic wallets for money transfers.

If you're considering going for TD Ameritrade as your preferred broker, take a look at some of the common frequently asked questions;

What are the requirements for opening an account with TD Ameritrade?

US residents are the main target clients for TD, although the broker also offers its service across other countries, such as China, Malaysia, Singapore, Taiwan, Thailand, and Brazil including Canada

 The requirements for opening an account with TD is similar to other brokers who operate within the US.

What is the TD Ameritrade minimum deposit fee?

TD Ameritrade offers zero dollar deposit fee for US clients but the deposit isn't equal to other clients outside the United States.

Withdrawal fee

TD Ameritrade offers a zero dollar withdrawal fee for both US and non-US clients.

Account types

TD Ameritrade offers different types of account to choose from but the most commonly used account type is the individual, saving and the IRA account.

In conclusion the NFA and CFTC are the two main regulatory bodies that are authorised to control and manage the affairs of brokers who want to operate in the United States, Brokers who fail to abide by the Dodd-frank wall street Act must not accept US clients.

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