Us regulated forex broker
S based investors from being scammed, the US government has introduced a regulatory framework to require all financial services providers to be a registered member of an authorized exchange. However for the U. S, the main regulatory agency which is responsible for regulating forex trading is the NFA.
The NFA was established in and is a self-regulatory, non-profit organization. Its main responsibility includes the following: Approving and licensing of forex brokers Ensuring all approved brokers are in compliance with regards to their capital requirement Monitoring for fraudulent activities and stop such activities Reviewing the compulsory audited reports submitted by the brokers In other words, the NFA ensures that all brokers operating in the U.
S financial trading industry are operating with integrity, transparency and in compliance of their regulatory requirements. To help forex traders verify the regulatory status of brokers, the NFA has also provided a verification system known as called Background Affiliation Status Information Center BASIC where traders can log in and check if a broker is an approved broker that is in compliance with all the regulatory requirements.
The most popular example of this is the MetaTrader4 by MetaQuotes. This is adopted by most if not all forex brokers on the market today. Other popular examples are the Sirix Platform and the cTrader. WebTrader Alternatively if they do not wish to download and install any software, they can opt for a web based trading platform which can be accessed using a web browser. Mobile Trader For traders who find themselves on the move and wish to keep in touch with all the developments in the financial markets, they can use mobile trading apps which can be downloaded and installed onto their smartphones or mobile devices.
What is most important when evaluating a trading platform is to ensure that it is user friendly and comes with all the necessary tools that will help a trader trade more effectively. Important tools that feature on trading platforms include advanced charting systems with the ability to incorporate indicators and studies.
This is particularly useful for those traders that rely on trading strategies. Other features a live market news stream to keep the trader update, although sometimes this features on the brokers website rather than on the platform, economic calendar of upcoming events, live support directly from the platform and the ability to trade from charts.
Hence, it is crucial that you pay close attention to the commissions and spreads that a broker will levy on your trade. Commissions In the forex industry, most brokers do not charge their traders any commission on the trades that they make. The key benefit of trading with a NDD broker is the raw interbank spreads which traders will have access to. Spreads The normal trading cost which a trader will incur is the spread which they pay on the asset traded.
Spreads can be in the form of fixed spreads or in the form of variable spreads. Fixed Spreads Fixed spreads as their name implies are fixed and higher than variable spreads. They are suitable for traders who want to know beforehand the spread that they will pay before executing a trade.
Variable Spreads Variable spreads on the other hand although lower than fixed spreads can fluctuate depending on the volatility in the market. Leverage One major limitation which forex traders in the U. S will face is the leverage which they can get from their brokers. Because of the regulatory requirements imposed by the NFA, forex brokers in U.
S can only offer their clients a maximum of leverage ratio. Leverage is the ability to multiply your capital in order to gain more exposure to the market. So leverage means your invested capital will be worth 50 times more than its face value. Leverage comes with extra reward but also increases the risk level, so should be used carefully by novice traders.
Account Types The type of trading accounts that are provided by a forex broker in the U. How We Make Money The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site.
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PILDAMMARNA INVESTING
IG is a London-headquartered broker and holds multiple regulatory licenses, including in the United States. It is a publicly listed broker that makes its business transparent and very safe. It is one of the best trading platforms offering trading services with forex, indices, stocks, commodities, and cryptocurrencies. It offers some of the lowest spreads for forex pairs in the industry. The platform is also easy to use and offers a ton of market research and analysis tools.
Interactive Brokers is one of the largest and well-reputed US brokers. It offers detailed guides on markets and trading techniques. Traders can also learn from well-explained videos. It conducts webinars for forex traders. Each broker was graded on different variables, including our proprietary Trust Score algorithm. This innovative scoring system ranks the level of trustworthiness for each broker based on factors such as licenses, regulation and corporate structure.
Read about Trust Score here. As part of our annual review process, all brokers had the opportunity to provide updates and key milestones and complete an in-depth data profile, which we hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than. Learn more about how we test.
Forex Risk Disclaimer There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument.