Forex isn’t new, in fact, it’s been around for well over a century starting with the gold standard in the late 1800’s.
Forex is foreign exchange, FX, or currency trading. It’s the most liquid market in the world and more than $5 trillion gets traded daily.
But is it lucrative? Do you have to be a mathematician or expert in the stock market to make money?
No. That’s what brokers are for. We’re taking a look at the best US Forex brokers available so you can make smart decisions in Forex trading.
Things to Look for and Avoid in a Forex Broker
There are two things to consider in Forex trading that every beginner needs to know. The first is a Forex broker and the second is a Forex signals provider.
A Forex signals provider, or signals service, analyzes the market data and tells you when to buy or sell.
A Forex broker is a firm that has currency traders. These brokers have access to a trading platform that allows them to buy and sell foreign currencies on the 24-hour market.
There are things you want in a broker:
- Check Security – Forex isn’t largely regulated which means there are scammers and thieves out there. Check one of the regulatory agencies for broker credibility.
- Transaction Costs – You pay for every trade you enter. Find the balance between security and low transaction costs.
- Allows deposits and withdrawals hassle-free – Brokers only hold your money to facilitate trades. Find out a broker’s policy on withdrawing your money.
- What platform do they use? – Try and find a broker that uses the same signals provider you do to make things easier. The best Forex trading platform for them may not allow you the access you want. The exception is if your signals provider and broker use different services but it’s working for you.
- Reliable communication – It’s important your broker responds to your questions and concerns with a short turnaround time. Make sure their “after sale” support is as good or better than when you opened your account.
Things to avoid:
- Scammers – That’s why you check the regulatory agencies
- Volatility – It’s a volatile market and some brokers go for the quick payout. This leads to inconsistency and no profitability. The top broker firms see the forest through the trees.
A good rule of them is to follow your instinct. If you get a bad vibe from a broker, it’s best to keep searching. The five brokers below are considered the best in the business and are all US-regulated.
5 of the Best US Forex Brokers
- Among largest online brokers
- Tight spreads
- Timely execution
- Mobile trading platform
- Free education and analysis
- 24/7 customer support
- No minimum – Accounts opened for as little as $1
- Highly regulated – CFTC, IIROC, FCA, ASIC, and the Monetary Authority of Singapore
- Flexible costs
- Accessibility – Charts and graphics open to traders
- Advanced analytical tools
- Offers Forex news and training videos
- Recently took by Ally Bank
- Tight spreads of 1-2 pips
- Multiple Forex trading platforms
- Provides research and analysis tools
- Compatible with smartphones and tablets
- Run by TD Ameritrade
- Allows 120 currency pairs
- Set up multiple watchlists
- Offers demo account
- Platform has more than 350 technical indicators
- Low commission rate
- Is a binary options exchange
- Doesn’t mark up spreads / Low spreads
- Single commission rate for all trades
- Demo accounts available
- Uses its own trading platform
- Investment resources available like blogs, webinars, and courses
- Good choice for beginners
Research is the key to finding the best brokers for you but making sure your broker is secure and regulated should be your top priority.
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