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Broker for USA traders

  • #1
  • First Post: Oct 16, 2015 6:13pm Oct 16, 2015 6:13pm
i want to open an account around 500$
leverage from 1:100 - 1:500

one broker i'm using right now is Forex Broker Inc.
is it fine?

Because i'm under 21 so i can't use Trader'sway

so is there any other good brokers?

I can switch to low leverage broker if my account get bigger.
  • #2
  • Oct 17, 2015 2:42am Oct 17, 2015 2:42am
You can try these brokers:
eToro, Alpari, LMFX, Forex.com (Gain Capital), Markets.com
  • #3
  • Oct 17, 2015 6:26pm Oct 17, 2015 6:26pm
Quoting hoangforex
You can try these brokers: eToro, Alpari, LMFX, Forex.com (Gain Capital), Markets.com
ok i will see
looks like many people use Alpari
  • #4
  • Jun 23, 2016 3:23am Jun 23, 2016 3:23am
Quoting hoangforex
You can try these brokers: eToro, Alpari, LMFX, Forex.com (Gain Capital), Markets.com

Not sure about the others in your list however i had traded with LMFX and i guess they can be good option to be considered while choosing a decent broker.
  • #5
  • Jun 23, 2016 8:42am Jun 23, 2016 8:42am
Quoting hoangforex
You can try these brokers: eToro, Alpari, LMFX, Forex.com (Gain Capital), Markets.com
Out of these, only forex.com can be used by US residents. If you do a little research, I'd stay away from all US brokers. I've been offshore for over 2 years and couldn't be happier with my decision.
  • #6
  • Jul 22, 2016 6:21am Jul 22, 2016 6:21am
I had better say that LMFX is also accepting traders from US however its the traders choice with which broker they choose but i think this broker should also be considered while shortlisting your broker.
  • #7
  • Jul 22, 2016 11:24am Jul 22, 2016 11:24am
https://www.tallinex.com/
  • #8
  • Jul 24, 2016 9:35pm Jul 24, 2016 9:35pm
IB > FXCM > Oanda > forex.com


That's pretty much what's left of the brokers for US traders.
  • #9
  • Jul 25, 2016 7:37am Jul 25, 2016 7:37am
Quoting fxRichard
IB > FXCM > Oanda > forex.com That's pretty much what's left of the brokers for US traders.
Onshore. I usually only use offshore brokers to avoid the silly CFTC rules.
  • #10
  • Jul 25, 2016 9:43am Jul 25, 2016 9:43am
Quoting bparker
{quote} Onshore. I usually only use offshore brokers to avoid the silly CFTC rules.
Which "silly" CFTC rules are you referring to?
  • #11
  • Jul 27, 2016 8:42am Jul 27, 2016 8:42am
Max 1:50 leverage & not being able to hedge. FIFO rules basically.
  • #12
  • Jul 29, 2016 2:53am Jul 29, 2016 2:53am
Anyone know how a broker could accept U.S trader while many couldn't? Regulation is the main reason?
  • #13
  • Jul 29, 2016 4:54am Jul 29, 2016 4:54am
Quoting hoangforex
You can try these brokers: eToro, Alpari, LMFX, Forex.com (Gain Capital), Markets.com
I dont get why 24options is not running in US. they are HQ'd in Cyprus, CYSEC/EU regulated, I am in London and I have an account with them. I wonder whats the deal with this??
  • #14
  • Jul 29, 2016 5:35am Jul 29, 2016 5:35am
Quoting hoangforex
Anyone know how a broker could accept U.S trader while many couldn't? Regulation is the main reason?
Because some small bucket shops taking a chance accepting US citizens.
When broker wants to deal with US clients - they need to be registered with CFTC and NFA and have 20mil. net capital. For most bucket shops even 10K could be a big challenge. This is requirement of Dod-Franc Act since 2010.
All these discussions going for years. US citizens are limited to few brokers that fxRichard mentioned. Everything else - you dealing with some dodgy guy around the corner that promised you a heaven.
  • #15
  • Jul 29, 2016 6:24am Jul 29, 2016 6:24am
Quoting johnnycash
{quote} Because some small bucket shops taking a chance accepting US citizens. When broker wants to deal with US clients - they need to be registered with CFTC and NFA and have 20mil. net capital. For most bucket shops even 10K could be a big challenge. This is requirement of Dod-Franc Act since 2010. All these discussions going for years. US citizens are limited to few brokers that fxRichard mentioned. Everything else - you dealing with some dodgy guy around the corner that promised you a heaven.
Not necessarily true. I've been trading with these 'small little bucketshops' for a few years with no issues at all. I'm sure there are a lot of established brokers in the UK and Cyprus that could afford to be regulated by the CFTC but choose not to.
  • #16
  • Jul 29, 2016 7:16am Jul 29, 2016 7:16am
In my opinion these established and regulated UK and Cyprus brokers can't afford to operate in US due to CFTC net capital requirements. Otherwise they would do that. There is almost no competition in retail FX market in US. Such lucrative market left just because some brokers decided that it's not worth the hassle?
Reality is - big boys took over the retail FX market and even have enough power to prevent locals going somewhere else. Of course - some people will find the way around the rules, but they are more exception from the rule.
And on other hand - if somebody trading major pairs only - they can go with e-micro futures. 1:100 leverage. And if person smart enough - with major pairs can construct almost any cross pair.
Conclusion - there is always the solution
  • #17
  • Jul 31, 2016 11:01pm Jul 31, 2016 11:01pm
About FXCM's order execution, I was reading this page: https://www.fxcm.com/open-account/

...and I noticed the following quote:
"In some circumstances, FXCM may add a markup to NDD spreads, based on account type."

Am I understanding this correctly....this sentence basically says that FXCM's NDD execution is not actually NDD, right? If FXCM can arbitrarily increase the spread, then they must be, in effect, the counterparty to the trade right?

And the same page also says:
"FXCM aggregates bid and ask prices from a pool of liquidity providers and is the final counterparty when trading forex on FXCM's dealing desk and No Dealing Desk (NDD) execution models."

...ummm so when FXCM says it is NDD, it really means that it is not NDD, right? at least that's what it sounds like to me.
  • #18
  • Aug 1, 2016 6:18am Aug 1, 2016 6:18am
Every single NDD broker will ad markup on spread to make money.
  • #19
  • Aug 1, 2016 2:57pm Aug 1, 2016 2:57pm
Hi Fivewhy and Johnnycash,

Your posts touch on several topics, so I will address them one-by-one.

Quoting fivewhy
If FXCM can arbitrarily increase the spread, then they must be, in effect, the counterparty to the trade right?
FXCM provides true No Dealing Desk (NDD) forex execution to all our clients with Standard and Active Trader accounts*. That means we offset each client order one-for-one with the best prices from the competing liquidity providers shown below. Therefore, we do not profit from client losses or lose from client profits on the NDD model.

Attached Image (click to enlarge)
Click to Enlarge Name: liquidity-providers-logo-group-desktop.jpg Size: 145 KB


Quoting johnnycash
Every single NDD broker will ad markup on spread to make money.
While I can't speak for other brokers, FXCM does not add a markup to the spread on our NDD execution to make money^. Instead, we profit from client volume by charging a separate commission.

Quoting fivewhy
About FXCM's order execution, I was reading this page: https://www.fxcm.com/open-account/ ...and I noticed the following quote: "In some circumstances, FXCM may add a markup to NDD spreads, based on account type." Am I understanding this correctly....this sentence basically says that FXCM's NDD execution is not actually NDD, right?
The account type mentioned here as possibly being subject to a spread markup refers to clients of certain intermediaries. For example, a client may choose to open his trading account through an introducing broker. That IB could charge the client a markup on top of FXCM's NDD spreads as compensation for some value-added service such as premium charting or trading signals. An introducing broker wanting to add such a markup would disclose this to the client as part of their account opening documentation, so the client can make an informed decision on whether they want to pay extra for the service provided.

Regarding our NDD model, the key point to take away is that FXCM makes money from commissions, not from client losses or from markups to the spread.

Quoting fivewhy
And the same page also says: "FXCM aggregates bid and ask prices from a pool of liquidity providers and is the final counterparty when trading forex on FXCM's dealing desk and No Dealing Desk (NDD) execution models." ...ummm so when FXCM says it is NDD, it really means that it is not NDD, right? at least that's what it sounds like to me.
It's important to understand that being your counterparty says nothing about the execution model we offer. In fact, all retail forex brokers are the counterparties of their clients, regardless of the execution models they use. That's because the major banks and financial instituations comprising the interbank market don't want to take on the counterparty risk of individual retail traders.

On our NDD model, FXCM is simultaneously your counterparty and the counterparty to the liquidity providers on the other side of your trades. That means, if you lose on a particular trade, the banks on the other side come to us, not you, for their money.



* FXCM offers a Mini Account type using DD execution for traders looking to start with as little as $50.

^ Regulations governing spread betting accounts in the UK prohibit brokers from charging a separate commission. Therefore, on this account type only, FXCM does not charge commissions on our NDD model, and instead adds a fixed pip markup to take their place.
  • #20
  • Aug 2, 2016 2:44pm Aug 2, 2016 2:44pm
Quoting johnnycash
{quote} Because some small bucket shops taking a chance accepting US citizens. When broker wants to deal with US clients - they need to be registered with CFTC and NFA and have 20mil. net capital. For most bucket shops even 10K could be a big challenge. This is requirement of Dod-Franc Act since 2010. All these discussions going for years. US citizens are limited to few brokers that fxRichard mentioned. Everything else - you dealing with some dodgy guy around the corner that promised you a heaven.
and you don't believe FXCM, Oanda and Forex.com are "dodgy" Wow, sounds like you need to do a little research.
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