US Forex brokers… Most reliable?
You can put the question this way; becoming a US Forex broker isn’t as simple as registering an off-shore brokerage. The answer lies in the regulatory requirements. All US brokers must be registered with NFA (National Futures Association).
While registration itself isn’t the issue, being a member of NFA regulated brokers group requires adherence to the strict NFA rules.
US Forex brokers list:
Requirements to become a US Forex broker
All US Forex brokers must be registered with NFA. All introducing Forex brokers in the US must also be registered with NFA.
Forex broker – RFED – Retail Foreign Exchange Dealer is required to submit the following to NFA:
1. Online Form 7-R
– Financial statement,
– Anti-Money Laundering Procedures,
– Business Continuity and Disaster Recovery Procedures,
– Promotional Material Procedures,
– Supervision of Associated Persons Procedures,
– Customer Complaint Procedures,
– Source of Assets Letter, describing the source of the firm’s current assets
3. A non-refundable application fee of $500
4. Retail Foreign Exchange Dealer Membership Dues of $125,000
For a complete list of any additional other documents, please refer to:
US Forex brokers with high leverage?
All US brokers are required to provide leverage no higher that 50:1 according to 50:1 Leverage CFTC Rules. This leverage will be offered to all US residents without exception.
Non-US residents, who seek to open an account with the US based broker, might be able to get a higher leverage for their trading accounts. This option is often available when a broker has multiple branches around the globe.
Among such brokers are:
ATC Brokers – 200:1 leverage for non-US accounts
CitiFX Pro – 100:1 leverage for non-US accounts
CMS Forex – 100:1 leverage for non-US accounts
FastBrokers – 200:1 leverage for non-US accounts
FOREX.com – 200:1 leverage for non-US accounts
US Forex brokers vs other brokers
So, what’s the difference between US and other Forex brokers?
The two striking differences are:
– leverage options
– regulatory regime
US brokers offer a pretty low leverage 50:1 (NFA rules requirements) comparing to other brokers, who can shoot up to 1000:1 or higher with no consequences. This makes US brokers less competitive in the eyes of many novice traders, who generally need a larger leverage boost from the start.
Forex brokers in the US are among the most regulated brokers in the world. The regime and penalties by NFA are high and strict, thus no one essentially wants to go off the marked path. This fact certainly provides the highest level of trust to the US brokers.
Alternatives to US Forex brokers
Are there good alternatives to US Forex companies? Although traders won’t find better-regulated Forex brokers than those in the United States, other countries to consider are: UK, Australia and Switzerland.
Continue reading about: NFA regulated Forex brokers
Did we miss any US Forex broker?
Please suggest by adding a comment below.