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Intro and winners
To help you find the best forex brokers in the United States, we looked at over 100 online brokers with a focus on retail traders. We checked and compared their fees, currency pair selection, charting tools, and educational materials.
Here are our top 5 picks for the top forex brokers in the United States in 2022:
- Saxo Bank is the winner, the best forex broker in the United States in 2022. It offers low trading fees, a wide range of products, and many great research tools.
- Fusion Markets takes second place with low trading fees (free stock and ETF trading). It has a superb desktop trading platform and great customer support.
- CMC Markets rounds out the top three. It offers low forex fees and has a great selection of currency pairs. It also has diverse technical research tools.
- Interactive Brokers is ranked fourth. It has great trading platforms and outstanding research tools. The account opening is fast and user-friendly.
- Capital.com just made it to the list, taking the number five spot. It has a first-class web trading platform and superb educational tools. Great deposit and withdrawal options are also available.
Here is our score sheet including the minimum deposit you need to make:
| Broker | Info | Minimum deposit | Forex fee score | ||
|---|---|---|---|---|---|
| #1 | Saxo Bank | Danish investment bank | $2,000 | 4.2 stars | Visit broker |
| #2 | Fusion Markets | Australian forex broker | $0 | 4.9 stars |
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74-89% of retail CFD accounts lose money |
| #3 | CMC Markets | Global CFD broker | $0 | 3.7 stars |
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76% of retail CFD accounts lose money |
| #4 | Interactive Brokers | International broker providing all asset classes | $0 | 3.3 stars | Visit broker |
| #5 | Capital.com | Global CFD broker | $20 | 3.7 stars |
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81.40% of retail CFD accounts lose money |
Best forex brokers
Fee comparison of the best US forex brokers
To have a clear picture of forex fees, we calculated a forex benchmark fee for major currency pairs. This catch-all benchmark includes commissions, spreads and financing costs for all brokers.
| Saxo Bank | Fusion Markets | CMC Markets | Interactive Brokers | Capital.com | |
|---|---|---|---|---|---|
| EURUSD benchmark fee | $7.1 | $5.2 | $8.8 | $10.4 | $8.7 |
| GBPUSD benchmark fee | $5.5 | $3.2 | $5.8 | $8.3 | $6.6 |
| AUDUSD benchmark fee | $5.7 | $2.5 | $8.2 | $7.9 | $6.1 |
| EURCHF spread | 1.4 | 0.6 | 2.5 | 0.4 | 2.2 |
| EURGBP benchmark fee | $8.7 | $5.7 | $10.2 | $10.7 | $10.9 |
All spreads, commissions and financing rate for opening a position, holding for a week, and closing.
Best forex brokers
Non-trading fees at the best US online forex brokers
| Saxo Bank | Fusion Markets | CMC Markets | Interactive Brokers | Capital.com | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | Yes | No | Yes | No | No |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
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Best forex brokers
Currency pair selection offered by the top online US forex brokers
| Saxo Bank | Fusion Markets | CMC Markets | Interactive Brokers | Capital.com | |
|---|---|---|---|---|---|
| Currency pairs (#) | 190 | 89 | 338 | 105 | 138 |
Best forex brokers
Our top scores for the best US forex brokers
Based on our assessments, and hundreds of data points we analyzed, here is our scorecard for the best online broker for trading forex:
| Saxo Bank | Fusion Markets | CMC Markets | Interactive Brokers | Capital.com | |
|---|---|---|---|---|---|
| Fees score | 3.3 stars | 4.7 stars | 3.6 stars | 4.5 stars | 4.4 stars |
| Markets and products score | 5.0 stars | 2.2 stars | 2.6 stars | 5.0 stars | 3.1 stars |
| Education score | 4.5 stars | 1.5 stars | 5.0 stars | 4.5 stars | 5.0 stars |
| Charting quality | Great | Mid-range | Great | Great | Great |
Here are a few things that are good to know before diving into forex trading and the financial markets:
What makes a top forex broker?
- First of all, fair forex fees.
- A good selection of currency pairs.
- A great forex trading platform with advanced charting.
- Educational tools to guide you through the basics of trading.
Is forex trading legal in the US?
We only recommend regulated, safe, reliable brokers, so each of these top picks is a good choice to start trading. The US foreign exchange market is highly regulated, any fraudulent activity conducted by a broker will result in the immediate revoking of its license and a high fine. But if you are worried about scams, here are a few useful tips on what to look out for:
- No information about the broker’s details on the website
- Questionable or difficult to understand parts in the Terms and Conditions
- The broker has no license or it is difficult to find out of it has one
- There are no reviews or many negative reviews
- Few methods of contacting customer support, slow response
- The broker’s representatives are obtrusive, frequently write and call, asking you to deposit money to your account
The Commodity Futures Trading Commission (CFTC), a US government agency registers and regulates forex brokers. A broker must meet certain financial standards and meet specific disclosure requirements to be registered. Brokers are also regulated by the National Futures Association (NFA), another independent, self-regulatory organization that sets minimum standards for brokers.
Capital requirements are a key element of the US regulatory environment for brokers. The NFA requires US registered brokers to maintain a minimum capital of at least USD 20 million. They are also restricted by a maximum leverage of 50:1 on most major currencies.
However, keep in mind that the forex market is highly vulnerable to financial market volatility triggered by economic turbulence. You can check NFA’s website, to see if your broker is registered there.
If you want to know more, here is our detailed article on forex scams.
If you are a novice trader and want to learn about trading strategies, we put together some trading ideas for you, check them out. A good trading strategy can be key to online trading but also make sure you practice with a demo account at an online forex broker.
If you don't know how currency trading works, take a look at our forex education articles.
Now let’s see our top picks in detail, starting with the winner, Interactive Brokers.
#1 Best forex broker
Saxo Bank
#2 Best forex broker
Fusion Markets
#3 Best forex broker
CMC Markets
#4 Best forex broker
Interactive Brokers
The essence: IB has average fees and gives access to 105 currency pairs.
Interactive Brokers, one of the biggest US-based discount brokers, was founded in 1977.
The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC), and is considered safe.
Interactive Brokers recently launched a new app for global stock trading: read our review of IBKR GlobalTrader.
In addition, Interactive Brokers also has an app you can use for ESG investing: read our review of IMPACT by Interactive Brokers.
#5 Best forex broker
Capital.com
Best forex brokers
Forex broker fees in the US
To better understand what you are paying for when it comes to forex trading, here is a run-down on what forex brokers can charge, including commissions, spreads and financing fees.
When it comes to commissions, there are two different fee structures forex brokers normally use:
- All trading fees are included in the spread except the financing rate. Basically, think of it as the broker giving you a wider spread than it gets from the forex market.
- You get the market spread, but you pay a commission based on the traded amount. This model is usually used by ECN brokers.
The second version is more transparent, but this doesn't always mean it's more expensive.
When you trade forex on leverage and hold your position overnight, a fee will be charged. This is called financing cost. Financing costs change daily, and can add up if you hold your positions for a longer period.
Still unsure? Use our broker finder tool to pick the best broker for you.
Best forex brokers
FAQ
Is forex available in the US?
Forex trading is fully legal in the US. The Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) are responsible for regulating forex trading in the country. Generally speaking, forex trading and forex brokers in the US are heavily regulated. US registered brokers are required to have a minimum capital of USD 20 million and the maximum leverage they can apply on most major currencies is 50:1.
Is forex trading tax-free in the US?
Forex trading is taxed in the US and the Internal Revenue Service (IRS) treats the various types of forex transactions differently. Spot forex trades are treated as ordinary losses and gains by the IRS according to IRC Section 988 contracts. If you trade spot forex, the IRS will categorize you as a 988 trader and you can report all your forex losses as "ordinary losses." If you trade forex futures or options, you will be taxed at 20% on 60% of your gains or losses, and a 37% tax rate will be applied to the remnaining 40% of the amount.
How can I legally trade forex in the US?
If you want to trade forex legally in the US, choose a licensed forex broker and make sure you pay any taxes that may be due. For a forex broker to be allowed to operate in the US, they must be registered with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Most brokers will indicate on their website what kind of regulation they are under and what licenses they possess. Make sure you choose one that is fully regulated in order to avoid scams.
Save yourself hours of research and check out our broker recommendation tool that will give you a tailor-made list of the best forex brokers available to you.
