3 Best NFA Forex Brokers in 2021

Advertiser Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

The National Futures Association (NFA) protects investors from fraudulent futures & commodities activities. Following in-depth research, below is a list of the top NFA Forex brokers, to help you select the broker that meets your personal criteria.

1
IG Markets
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Top US Forex broker
Over 17,000 tradeable assets
2
Forex.com
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
NFA regulated broker
In-house research and excellent educational center
3
Nadex
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The only regulated binary options broker in the US
Short-term trades available from 5 minutes to one week

IG Markets
5.0/5 in this category
In Summary
Up to 27% lower spreads vs top two U.S. brokers. Spreads starting at 0.8 pips with zero commission

IG is a global giant in the world of retail brokers and its presence is unrivaled. That means IG can bring resources to you as a US trader that is unparalleled in the industry. To give you an idea of IG’s scope, here are some quick facts: IG serves over 239,000 clients worldwide, has access to over 17,000 markets, and has been in operation since 1974 (over 45 years). In a world where US Forex brokers come and go every year, maintaining a consistent presence decade after decade demonstrates a deep commitment to the industry. Having such a large presence, (for example, IG executed 86 million trades through its own trading platform alone in 2019) means IG can invest in leading technology for its execution and trading platforms that is reliable and quick. It also means IG can invest in resources such as its learning academy and highly trained customer support.

You can trade Forex through IG with a Direct Market Access account. The Direct Market Access account has a variable commission but with improved liquidity and pricing.

As a US trader, IG offers you their own award-winning web-based platform and mobile trading apps for iOS and Android devices. The average execution time for trades on their own platform is a lightning-quick 0.014 seconds. IG also offers US Forex traders a range of third-party Forex trading platforms including the popular MetaTrader (MT4), Progressive web app, ProRealTime, and L2 Dealer (which offers Direct Market Access). IF you choose the MT4 platform through IG, you will have access to a suite of IG’s own custom MT4 add-ons as well as the standard indicators.

Unique Features

Headquarters

United Kingdom

Regulation

FCA

Year Founded

1974

Type of Broker

Market Maker

Minimum Deposit

$250

Maximum Leverage

N/A

Type of Platform

MetaTrader 4, Proprietary platform, Web-based, Other

For those that want signals directly from their US Forex broker, IG has teamed up with Autochartist and PIA First to provide traders with technical and fundamental signals.

IG is also considered one of the best US Forex brokers for beginners because it has a comprehensive online trading academy with on-demand videos and live webinars to give you the knowledge you need to succeed.

IG’s customer service gives expert support 24 hours-a-day, six days a week.

In summary, as a US trader, if you want the best overall US Forex broker with great platforms, execution, and customer service, IG would be a choice that is hard to beat.

 

IG Markets Pros & Cons

Advantages

  • No withdrawal fee

  • Good education / research

  • Good reputation

  • Wide choice of assets

Disadvantages

  • Higher minimum deposit

Forex.com
5.0/5 in this category
In Summary
Excellent trading conditions + NFA regulation

If you are looking for the best US Forex broker, a true global market leader like Forex.com should be on your list. They have been connecting traders to the world’s most popular financial markets for over 15 years.

Unique Features

Headquarters

United States

Regulation

CFTC

Year Founded

2001

Type of Broker

35,38

Minimum Deposit

$500 to open an account, $100 afterwards

Maximum Leverage

1:50

Type of Platform

MetaTrader 4, Proprietary platform, Web-based

As a US trader, you can be comfortable knowing that Forex.com meets all necessary regulations that are required of Forex brokers accepting US clients. Forex.com takes the protection of customer funds very seriously by holding deposits with top-tier banks and having trust letters in place to ensure client money remains segregated from the assets of the bank. That means as a US trader, your money is ring-fenced from the operations of Forex.com and the banks that hold deposits. As of the time of writing this review, Forex.com caries capital in excess of its regulatory requirement. Forex.com is owned by StoneX Group, a publicly traded company on the NASDAQ exchange, meaning it must meet the highest standards of corporate governance, financial reporting, and disclosure. This makes Forex.com is one of the most financially stable US Forex brokers that you could choose for your trading. 

Forex.com is committed to execution quality and transparency. In January 2011, it became the first Forex broker in the world to introduce a Trade Execution Scorecard on their website. Over 99% of their trades are executed in less than 1 second, and their average execution speed is 0.05 seconds. In fact, 99.99% of their trades are successfully executed.

Forex.com offers its own Advanced Trading Platform with sophisticated features and integrated trading tools designed for serious traders. The software platform can be used as a desktop application or accessed through a web browser, tablet, or smartphone.

Forex.com also offers MetaTrader 4 (MT4) to its traders along with a Virtual Private Server facility for MetaTrader “Expert Advisors”– these are automated software that can trade for you on your behalf according to preset rules and can even trade for you while your computer is switched off.

Forex.com has a live monthly webinar especially for the Non-Farm Payroll announcement – the biggest economic announcement in the Forex world. If you enjoy trading news announcements, this is the webinar to join!

Forex.com is best for regulatory compliance, trading platforms, and trading software that provides ultrafast execution speed and transparency of performance.

Forex.com  Pros & Cons

Advantages

  • Lower minimum deposit

  • Islamic account available

  • Good reputation

  • Choice of account types

Disadvantages

  • Withdrawal fee

Nadex
4.5/5 in this category
In Summary
One of the only US Binary exchanges regulated by the CFTC

Amongst our list of top US based Forex brokers, Nadex presents a truly unique offering. It is the premier US exchange for binary options, call spreads, and knockouts, offering a genuinely innovative way to participate in the markets.

If you have not traded these types of instruments before, let us begin with an example of a binary option trade to show how it is different from a regular Forex trade. With a binary options trade, each trade is based around a simple yes or no question: do you think the price will be above or below a certain level by a certain time. The maximum value of the option is $100, and the minimum value is $0. That means a binary option is much more like a sporting bet with specific outcomes.

With Nadex, there are multiple time frames in which you can trade. There are short-term intraday contracts, through to daily and even weekly durations. This provides a great deal of flexibility to satisfy any trading style. The one major limitation with Nadex is that only ten Forex pairs are available. A range of global equity indexes, for example, the S&P 500, and commodity products are also available to trade.

Nadex is regulated by the Commodity Futures Trading Commission (CFTC), and member funds are held in segregated accounts in major US banks. In fact, Nadex is one of the very few entities that is properly regulated to offer binary options trading to US traders. None of the other US Forex brokers in our list offers the choice of binary options. This level of regulation is critical because binary options brokers have been some of the worst offenders when it comes to dishonest practices.

Nadex allows you to test drive their services with a free demo account.

Nadex is best for trading binary options or other betting styles in a regulated and secure environment.

Nadex Pros & Cons

Advantages

  • Offers binary options, call spreads, and knockouts

  • Great reputation

Disadvantages

  • Only 10 Forex pairs available

  • Higher minimum deposit

Forex Brokers Operating Under US Regulations

To be registered with NFA, Forex brokers must follow the strict rules and requirements, including financial requirements, developed by NFA which are meant to protect investors from fraudulent activity and customer abuse of any kind.

Do you live outside the United States of America? If so, the brokers listed below may not be regulated in your country, and even if they are, you have a much wider pool of potential to choose from. For our list of best brokers regulated outside the United States, see our global brokers list.

If you’re a United States citizen or even simply resident in the United States and trying to choose between different United States Forex brokers, you’ve probably realized that your options are more limited than those available to international traders. Since 2010, the Dodd-Frank Act has been the major source of law governing Forex within the United States, and its provisions were stringent enough to almost kill off the burgeoning American Forex industry. All Forex brokers able to offer their services within the United States, even including “introducing” Forex brokers, must secure registration as a retail foreign exchange dealer from the Commodity Futures Trading Commission (CFTC) and as a futures commission merchant from the National Futures Association (NFA). Regulated Forex brokerages in the United States are subject to very stringent restrictions which are (allegedly) designed to protect US traders, although many industry analysts suspect that such restrictions are more the result of intense lobbying by the options/futures/stock brokerage industry, which is a far bigger business there than Forex has ever been, and are designed primarily to protect the interests of that industry rather than the interest of aspiring retail Forex traders or investors. Interestingly, the Securities Exchange Commission (the SEC) has no jurisdiction over Forex in the United States as Forex currency pairs are not deemed to be a “security”.

An additional restriction placed upon U.S. Forex brokerages is that they aren’t allowed to offer CFDs (contracts for differences) as tradable products to their clients. Furthermore, NFA regulated brokers must limit their leverage to 50:1 and conform to rigorous record-keeping and reporting requirements. However, it is worth noting that 50:1 leverage is considerably higher than the maximum limit placed upon Forex / CFD brokerages in the European Union, which regulators have set at 30 to 1. Both maximums are higher leverage than any Forex trader should ever need to use anyway. Another well-known, tedious and frankly pointless restriction specific to the U.S. is an effective ban on hedging due to the FIFO (first in, first out) rule which stipulates that traders with multiple positions of the same size in the same asset must close a position opened earlier than a position opened later, as the rule’s title suggests. This may sound painful, but two reasonably straightforward work arounds are opening two different Forex brokerage accounts (it can be difficult to do this with the same broker) or always opening trade positions of slightly different sizes. The second option can be challenging to execute if you are not well capitalized. Despite these minor obstacles, there are a handful of Forex brokers in the United States successfully maintaining NFA regulation offering reliable services and user-friendly platforms (there are also several “offshore” Forex brokers operating outside the United States without American regulation, although most. brokerages outside the United States expressly refuse to accept U.S. persons as clients). We’ve tested the trading platforms, customer service and ease of use of the top U.S. Forex brokers and recorded our findings to help you choose an NFA-regulated brokerage.

Before you start making comparisons to make a selection, you might ask, what are the characteristics of Forex brokers regulated in the United States? They are primarily market-making brokers with few ECN / STP execution models available. Very few of them are well-known globally, and one or two of them are primarily futures brokers offering Forex as a sideline. At least one broker falling into this category requires clients to have a liquid net worth of at least a quarter of a million dollars in order to trade Forex even without using any leverage at all, and it is hard to see much sense in that when other asset classes are demonstrably far riskier. However, don’t worry, it is still entirely possible to find a good regulated Forex brokerage in the United States. If you're looking for a Forex / CFD broker outside of the United States, check out our Forex broker reviews list to find another broker that's appropriate for you.

Huzefa Hamid

Huzefa Hamid is a retail Forex trader with substantial financial market knowledge and derivative products' expertise. He trades currencies, equities, futures, commodities, treasuries and options. Huzefa wrote the Fibonacci retracement levels course for FX Academy, as well as other courses, and is the author of dozens of articles about Forex trading and the online finance industry. Huzefa is an industry researcher and uses technical analysis for trading as he believes that technical indicators offer the cleanest way to predict the future direction of price movements.