The United States of America has created and put into place some regulatory authorities over the years because it takes the regulation of financial markets very seriously. However, a chosen few stand out from the crowd regarding relevance and reliability. One of these organizations with such a well-regarded regulatory system is the Commodities & Futures Trading Commission (CFTC).
If you trade commodities and futures from a US-based location, you must use the Best Forex Brokers in the USA Regulated By CFTC. Based on service, product, and dependability standards, we have created a list of the 8 Best Forex Brokers in the USA Regulated by CFTC in this guide. Continue reading to see the CFTC-regulated shortlist of the Best Forex Brokers in the USA.
What is the CFTC, and how does it work?
Along with the National Futures Association, the Commodity Futures Trading Commission (CFTC) is a US government organization that oversees all Forex brokers legally permitted to sell their services in the country.
The CFTC’s regulatory function is to encourage forex traders and other market participants to trade on the domestic commodities and derivatives markets in the United States. They also play the job of assuring that these broker offerings are genuine. They frequently work in tandem and have a collaborative connection with US institutions, especially those in banking and the NFA. The CFTC keeps an eye out for any of the following to safeguard the market and those who trade within it:
- Firms that offer illegal instruments such as CFDs.
- Firms that engage in market manipulation.
- CFTC regulation violations.
- Additional violations, such as poor trader oversight.
The following list includes what we consider the 8 best Forex Brokers in the USA Regulated By CFTC.
One of the Best Forex Brokers in the USA, Forex.com is regulated by the CFTC and is a National Futures Association member. It is a significant trading platform for commodities, currencies, and other assets on important international marketplaces. Your money is well-protected by the well-regulated brokerage’s use of top-notch security measures. More than 80 currency pairs, precious metals, futures, and futures options are supported by Forex.com. To keep costs in check, traders at Forex.com have a choice of three distinct account kinds.
- Deal in more than 80 currency pairs.
- To reduce fees, select between regular and commission accounts.
- Several platforms, such as MetaTrader.
- A limited amount of non-foreign currency assets.
With more than 300,000 clients being served, IG is a global powerhouse amongst retail Best Forex Brokers in the USA Regulated by CFTC. Due to its size and prominence among the top international Forex brokerages, IG has the financial resources to invest in trading platforms. Only Forex is what IG offers in the US. However, it does provide a large variety of more than 80 Forex currency pairings, giving committed Forex traders a lot of choices and the potential to diversify within the asset class.
- Forex traders access a wide range of assets.
- Quality trading platforms, including MT4.
- Autochartist signals are incorporated into the platform’s custom web-based interface.
- Excellent teaching resources for new traders.
- Limited withdrawal and deposit options.
- A higher minimum deposit requirement is fair for the demand.
In the early years of the online retail Forex period, eToro was established. As the master of social and copy trading, this broker holds a special position. Although this image is more focused on its copy trading approach than any other specific aspect, with the possible exception of its unique interaction with cryptocurrencies, eToro has a distinguished history and distinctive reputation to uphold. Although its US product is distinct from its offerings to the rest of the globe, eToro is regulated in Cyprus, the UK, Australia, and the United States.
- Active investing communities that are good for social trading.
- Specialized tools for social trading.
- A wide range of cryptocurrencies.
- Expanding training resources for new traders.
- Fees for internal withdrawals
- Higher minimum deposits and low retail leverage, but still within a comfortable range.
Plus500 is a global Forex broker established in 2008. It maintains an outstanding regulatory environment provided by the CySEC in Cyprus, the FCA in the UK, the ASIC in Australia, the FSA in Seychelles, the FMA in New Zealand, the FSCA in South Africa, and the MAS in Singapore. Plus500 gives traders a selection of more than 2,800 assets to trade, including nearly 900 options contracts, in a commission-free trading environment. Plus500 may be a good option for traders wishing to pursue extensive asset diversification due to the vast selection of available options.
- Wide range of assets available in options and equities.
- Globally well-regulated.
- Order for a guaranteed stop-loss.
- Low leverage for retail traders.
- A subpar trading environment without support for social or automated trading.
- A shortage of trading tools.
Nadex is one the Best Forex Brokers in the USA Regulated by CFTC, The CFTC has strictly regulated Nadex as a derivatives exchange for trading in the US. With an initial investment of $1,000, CFTC Nadex participants are eligible for a $100 bonus. Nadex offers support for USD deposits as well as a base currency.
- Clients of the CFTC may trade binary options on 11 Nadex FX pairs as well as commodities, events, and stock indices.
- For each side of a binary option contract, Nadex imposes a flat fee of $1.
The CFTC regulates Oanda. For CFTC clients, Oanda doesn’t have a minimum deposit required to start a basic account. For CFTC clients, Oanda provides the USD as the base currency. For CFTC clients, Oanda accepts debit cards, bank wire, checks, and electronic bank deposits (ACH), whereas it only accepts debit cards and bank wire for withdrawals.
- Oanda provides the Advanced Trader loyalty program to its high-volume CFTC traders, which entitles them to several benefits, including lowered spreads.
FINRA member Interactive Brokers is also one the Best Forex Brokers in the USA Regulated by CFTC. US customers can fund IBKR accounts with credit cards, wire transfers, or bill payments.
- There is no IBKR minimum deposit requirement for CFTC clients.
- IBKR accepts both USD deposits and base currency from CFTC traders.
- The minimum margin rate for IBKR traders is 1.16%.
TD Ameritrade is a FINRA member and one of the Best Forex Brokers in the USA Regulated by CFTC. Many other deposit and withdrawal methods, including Bank Deposit (ACH), wire transfer, and check, are supported by TD Ameritrade under CFTC electronic. There is no minimum deposit needed to start an account for US customers. The lowest electronic funding amount for a Standard account is $50, while the maximum is $2,000 for a margin account.
Any Forex or Futures broker that provides services to traders in the United States must be registered with the CFTC and subject to its regulations. Because traders are not the focus of CFTC regulations, you can use offshore brokers that are not subject to CFTC oversight if you properly declare your offshore accounts to the IRS. Forex Brokers in the USA Regulated by CFTC should be your first choice if you are a US-based trader of Forex or futures because it offers significant protection.
In addition to establishing industry standards, the CFTC also fights fraud. Forex Brokers in the USA Regulated by CFTC offer a fair-trading environment, strong deposit protection measures, and well-capitalized financial stability.