How to select the best Forex broker In the US to trade with
US brokers have to adhere to some of the toughest regulations in the world with heavy fines for failing to meet them. This makes US brokers a lot more trustworthy than most other brokers.
In this article, we’ll look at the top forex broker in the US and why it’s making waves in the forex trading community, in the US and abroad.
Choosing A Broker In The US
There’s a hell of a lot to consider when picking a US forex broker, but whatever you do, don’t just pick a broker because of an offer!
That should be the last thing on your mind. The deal will come and go but you might end up stuck with a broker you hate. In the end, it is never worth it.
Interestingly, the US forex best brokers don’t need to encourage new traders with deals. They get enough business already because they are well-known and at the top of the industry.
That aside, the most important thing you should be looking for when checking out different broker websites is that they are regulated by the NFA and the CFTC.
With US forex brokers, this is typically displayed at the bottom of their home page. If not, it may be buried somewhere else in the site, like the FAQs or on even a dedicated page.
But if after a good search of the website you still can’t find anything about NFA and CFTC regulation, that’s a bad sign. It either means they are not regulated or they are regulated outside the US and cannot take on US forex traders.
To be extra sure, you can always search the broker on the NFA website where you can search them by firm name or by NFA ID.
You Should Have A Good Control Over Your Money
You should never feel like your broker is just rinsing you of all your money.
Ideally, transaction costs should be low. You don’t want your broker taking a huge percentage of every trade you make.
Some brokers may not charge transaction fees but bear in mind that doesn’t mean they aren’t as good as the ones that do. In most cases you will have to pay transaction fees, just try to keep them low.
Further to that, you also want low slippage as well. Slippage is the difference between the price you buy or sell at and the price you get.
It is very common not to get the exact price you wanted, but preferably you want the price you are buying or selling at to be as close as possible. Discrepancies can ruin your strategy over time.
But in all honesty, none of that matters if you are unable to withdraw your money when you need or want it.
It should be as easy to withdraw your money as it is to deposit it. Legitimate brokers should have no reason not to give you your hard-earned cash.
Forex broker reviews are always a good indicator of brokers that make it difficult to withdraw.
A good US forex broker should prepare you for the world of forex broker and keep you prepared to go out and make money.
Look at what trading platforms and tools they offer for traders. Don’t let yourself get dazzled easily though, most of its just marketing material.
Most brokers these days offer MT4 and MT5, which is the industry standard, however, it is also worth checking out other platforms as there are some inhouse trading platforms that are quite good too.
Good customer service is also highly important as well. And we’re not just talking about when they’re trying to convince you to sign up!
We mean custom service that is always willing to help you out when in need and resolve problems in a timely manner.
Research how they have handled problems and complaints by other traders. What commonly goes wrong and how do they fix it? Keep this in mind when looking at reviews.
Good Broker Checklist
So, based on all of the above, here’s a simple checklist of what to look for when searching for a US forex broker:
- No crummy deal when you sign up.
- Regulated by the CFTC and NFA (verified by the NFA website).
- Low transaction fees (good brokers should be transparent about their fees).
- Low slippage (like the above, they should be honest about what they can provide you.
- Reviews do not mention issues withdrawing your money.
- They offer at least MT4 for trading.
- Their customer service is well-regarded.
If you remember anything from this article, make it these key points.
- Don’t sign up to a broker just because of an offer. Research them and make sure they’re regulated! The best brokers don’t need to encourage new traders.
- You want low slippage and transaction fees. A good broker should also allow you to easily withdraw your money as well.
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