Best Brokers USA
Richard Montana | August 4, 2022
An online broker is a financial institution that allows you to trade stocks, forex, commodities and other financial instruments through an online platform. Online brokers are frequently referred to as discount brokers because they can offer a considerable discount when it comes to fees when compared to what the typical full-service brokerage firm might charge.
However, with an online trading broker, you won’t be getting the same financial advice or investment recommendations that full-service brokers usually provide. However, you can conduct self-directed trading and get commission-free trades with access to a number of other key products and services depending on which broker you opt for. Choosing an online broker makes sense for most day traders and investors who want to maintain control over their trading activities.
Some of the best trading brokers in the industry are based out of the United States. However, there are quite a few limitations when it comes to how and what you can trade. This can make it difficult for traders in the USA to choose a broker. We have reviewed hundreds of brokers and only a handful will accept US clients. Therefore, we have put together this guide to help you discover some of the options that are available to you.
Top 10 Brokers USA
Here you will find the best United States brokers according to the many hours of research, testing, analysis and comparison that we have conducted across hundreds of brokers. By having all of the best brokers listed in one place, we aim to make it quick and easy for you to identify the best broker in the USA according to your own individual needs.
In order to be included within our best brokers in the USA list, the broker should be regulated and offer top trading conditions, including tight spreads, low fees, lots of liquidity and rapid execution speeds. They should have a choice of easy to use yet powerful trading platforms and trading apps along with a wide selection of quality trading tools for comprehensive market analysis and to assist you with your daily trading activities.
Other factors that we consider to be important when choosing the best USA broker include the variety of account types, funding options provided, reputation within the industry, customer support and range of financial instruments available to trade online. We also like to see enough educational resources provided to help beginners learn more about trading and investing online.
That being said, we have chosen these as the best brokers in the United States as they meet our criteria and are regulated by the relevant authorities. They have passed our strict broker reviews with flying colours and been awarded a top broker rating for the excellent range of trading and investing services that they provide.
ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA
Min $250 Deposit
1974
1:200
IG
IG Group is a world leader in derivatives trading and an established member of the FTSE 250. They are one of the top USA brokers offering trading on thousands of shares plus forex, indices, commodities, options and more.
The IG Group of companies are heavily regulated by the top leading authorities worldwide due to its global presence. You can get access to a wide range of markets, industry leading platforms, superior research, and comprehensive trader education.
IG can be a great choice for beginners due to their high-quality educational content, with the dedicated IG Academy being its main focus. It also publishes special reports, features podcasts, webinars, and seminars, has a subscription-based service, and delivers in-house trading recommendations from expert analysts.
You can access exclusive data and expert analysis day or night, with live prices available even before you log in. IG’s trading app is built to fit around you and regularly updated to suit your changing needs, so you can be sure you’re getting the best possible trading experience.
OANDA
OANDA is among the best forex brokers in the USA in terms of customer funds held. They are regulated in multiple top-tier jurisdictions and provide client with excellent trading conditions on powerful trading platforms and apps.
They offer a wide range of global CFD instruments, including indices, forex, cryptocurrencies, commodities, metals and bonds. You can analyse the global markets in great detail using a plethora of top-class trading tools to help you find opportunities and make informed trade decisions.
TD Ameritrade
TD Ameritrade are considered by many to be one of the best US brokers for online stock trading, long-term investing, and retirement planning. You can stay on top of the market with access to the brokers innovative technology, extensive product range, personalized education, and award-winning service.
They have desktop, web, and mobile platforms which are built for all levels of investors. You can trade the markets with very low fees and powerful platforms along with an abundance of advanced trading tools to help you discover opportunities according to your own financial goals.
Forex.com
Forex.com offers forex and metals trading with award winning trading platforms, tight spreads, quality executions, low commissions and dedicated support. They have an excellent choice of trading platforms that can give you that extra edge in your trading strategies. There are intuitive and fully customisable platforms packed with tools for your desktop, web and mobile devices. You will also get access to a fantastic selection of in-house and third-party market research to help you make informed trade decisions. City Index are another trading broker under the same umbrella which further emphasises the stature of the company.
Firstrade
Firstrade is a discount broker that provides self-directed US investors with online brokerage services. They have very competitive trading conditions including zero commission investing on a wide range of investment products. You can trade on intuitive and versatile platforms with the tools designed to help investors build and take control of their portfolio. As a pioneer in online trading, Firstrade has been serving US traders since way back in 1985.
Fidelity
Fidelity is a US brokerage offering a broad choice of investments with competitive fees, advanced trading platforms, expert analysis and powerful tools to help you make informed decisions.
Charles Schwab
Charles Schwab is a leading US brokerage offering a vast range of investment products across high quality platforms for all of your devices with powerful tools and educational resources to help guide you along the way.
E*TRADE
E*TRADE offers a variety of solutions for all kinds of investors and traders—with no account minimums and no confusing jargon. You can build your portfolio with access to intuitive tools, resources and help whenever you need it.
Rosenthal Collins Group
Rosenthal Collins Group (RCG) is a well-established brokerage firm, commodities broker and regulated futures commission merchant (FCM). RCG offers trading instruments on a wide range of professional trading platforms for all of your devices.
Cobra Trading
Cobra Trading offers powerful trading platforms and sophisticated trading tools along with unparalleled support to competitive day traders who want to capitalize on every opportunity by trading faster and more efficiently.
Choosing a USA Broker
First and foremost, we ensured that the USA broker was regulated and authorised to provide online trading services to traders in the USA. We then conducted many hours of thorough research and analysis into the brokers USA services. From there, we were able to collate what we consider to be amongst the most important factors to consider when choosing the best USA brokers and allocated them an unbiased broker rating based on our findings.
Regulation
Online trading and investing has increased in popularity over the years with many online brokerages opening which has given traders a vast choice of brokers who are all competing for their business. This can make it difficult to choose the best brokers in the USA although due to strict regulatory requirements, there are not actually that many brokers who offer trading products to US clients when compared to other countries.
We believe that it is of upmost importance that a broker providing services to clients in the USA is authorised and regulated to provide trading to US traders. Using a regulated broker helps to give traders peace of mind that they are using a brokerage firm which is subject to strict rules and regulations put in place to protect investors. It is worth mentioning that there are some non-USA brokers that still solicit clients located within the USA. There are also USA brokers who offer online trading products and services to clients located in some countries outside of the USA. In this instance, it would be a considered a sensible idea to ensure that the broker in question has the relevant regulation within the jurisdiction that they operate from.
Before a broker can accept US traders as clients, they need to be registered as a Retail Foreign Exchange Dealer (RFED) by the financial regulatory body, the Commodity Futures Trading Commission (CFTC). The broker should also be regulated by the National Futures Association (NFA) as a Futures Commission Merchant (FCM).
If a broker has been licensed to operate in the United States (USA), they should be provided with a registration number as proof that they are registered. This number is usually located on the brokers website, near the footer where they state who they are regulated by. You should check on the relevant regulators website to validate the current status of the broker registration to ensure that it is valid and up to date. It has been known for some scam brokers to fake regulation, some even going as far to clone another brokers website. When you are looking up the registration number, you should find details of the brokerage firm including their website, contact details and if they have any cases brought against them.
Commodity Futures Trading Commission (CFTC)
The U.S. Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974, that regulates the U.S. derivatives markets, which includes futures, swaps, and forex trading. The stated mission of the CFTC is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation and transparency.
The Commodity Exchange Act (CEA) requires certain firms and individuals that conduct business in the derivatives industry to register with the CFTC. CFTC regulations also require, with few exceptions, CFTC registered firms to also be members of the National Futures Association (NFA). The CFTC has delegated registration responsibility to NFA.
All futures professionals that are required to register with the CFTC are only granted registration after a thorough and detailed investigation of their background to determine if they meet the strict standards set forth in the CEA.
National Futures Association (NFA)
The National Futures Association (NFA) is the self-regulatory organization for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency and OTC derivatives. NFA is headquartered in Chicago and maintains an office in New York City. Designated by the CFTC as a registered futures association, NFA strives every day to safeguard the integrity of the derivatives markets, protect investors and ensure members meet their regulatory responsibilities.
Retail Foreign Exchange Dealer (RFED)
A retail foreign exchange dealer (RFED) is an organization that acts, or offers to act, as a counterparty to an off-exchange non-U.S. currency transaction with a person who is not an eligible contract participant and the transaction is either:
- a futures contract, an option on a futures contract or an option contract (except options traded on a securities exchange); or
- offered or entered into, on a leveraged or margined basis, or financed by the offeror, counterparty or person acting in concert with the offeror or counterparty on a similar basis.
Futures Commission Merchant (FCM) Registration
A futures commission merchant (FCM) is an entity that solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts or swaps, and accepts money or other assets from customers to support such orders. If a broker is soliciting or accepting orders to buy or sell retail off-exchange forex contracts and accepting money or assets from retail clients, the brokerage firm needs to be designated as a Forex Dealer Member and comply with requirements outlined on the NFA website.
Trading Platforms
The best USA brokers should have a variety of different trading platforms for multiple devices including desktop, web and mobile trading apps. The brokers trading platforms should be user friendly, with plenty of trading tools and advanced functionality for all types of trading strategies. You will find that there are lots of MetaTrader brokers which is one of the most user-friendly platforms that gives convenient market access for manual and automated trading strategies. If you don’t have the time or skills to trade and want to copy trading signals, you should look for a social trading platform.
Trading Instruments
The brokers should provide USA traders with a wide range of trading instruments across multiple asset classes including Forex, Commodities, Cryptocurrency, Stocks, Indices, Options, ETFs, CFDs and Futures. The more choice that the broker has, the easier it would be to expand your portfolio in the future, should you wish to do so.
Spreads
When you place a trade position with a broker, you will usually need to pay the spread which is the difference between the bid and ask prices at the time of executing your order. In general, the lower the spreads, the cheaper the trading costs can be and the better the prices you may have your trade executed at. Although, this can also be dependent on other factors such as the brokers liquidity, slippage and execution model.
Commission
Many USA brokers will charge a small commission fee for each trade that you place with them. The lower the commission fee per trade, the lower your overall trading costs can be in the long term. Some trading strategies actually depend on low commissions. Thus, the best USA brokers should have the most competitive commissions.
Fees
In addition to the spreads and commissions that brokers may charge, there can be additional fees. These include overnight swap fees, funding fees, platform fees, trading tool fees, educational resource fees, etc. Any other fees charged by the broker should be competitive and transparent to the trader.
Execution Speeds
The execution speed can determine the price your order will be executed at. Instant execution should mean that the order is placed as close to your desired price as possible. The best USA brokers should have rapid execution speeds with minimal slippage so that traders get the best available prices more often than not. Some trading strategies such as scalping are dependent on reliable execution speeds.
Liquidity Providers
The best brokers USA should have top liquidity providers (LPs) with deep liquidity pools so that they can offer competitive bid/ask prices along with reliable trade execution speeds.
Trading Tools
Whilst the trading platforms offered by brokers will usually have more than enough trading tools for the average trader, there are some brokers who offer additional trading tools such as economic calendars, trading calculators, market analysis, trading signals and more. The best brokers in the USA will usually offer some additional trading tools to support traders with their daily trading activities.
Educational Resources
Educational resources can help traders to improve their trading skills and knowledge. They also encourage informed trading. The best brokers will usually offer clients a range of free educational materials such as tutorial videos, trading guides, eBooks, trading glossary, FAQs, webinars and seminars. If you are new to trading and need as much guidance as possible, you might want to explore our best brokers for beginners.
Account Types
Trading brokers can have a variety of different account types that are designed to cater to the differing needs of clients. The accounts can vary according to the minimum deposit required, leverage offered, execution type, spreads, commissions, instruments, additional services and more. The best USA brokers should have a selection of account types for different experience levels and trading strategies. Demo accounts can be useful to practice trading online with virtual funds whilst Islamic accounts that comply with Sharia law support Muslim traders.
Account Funding Options
In order to trade online, you will need to be able to deposit and withdraw funds to and from your trading broker account. Brokers can offer a range of different account deposit and withdrawal methods. This will often include bank transfers, credit/debit card and online payment processors such as Skrill, Neteller and PayPal. The best brokers in the USA should have a variety of convenient funding options. It is worth considering the time taken and any fees involved for processing funds.
Customer Support
Most brokers can be reached via telephone, email and live chat. It is worth ensuring that the broker can be reached in a way that is convenient for your needs. The brokers customer support team should be prompt, polite and efficient in their responses to all clients general and technical questions. You may wish to consider if there is any different between your time zone and the brokers support hours, as this could have an impact on response times.
Conclusion
Whilst this article covers what we consider to be amongst the most important things to consider when choosing a broker in the USA, it can differ depending on your individual preferences. Thus, it is important that you choose a broker that meets your needs and use this information only for educational purposes and not as advice. Take your time to research brokers and conduct your own due diligence. You can even test a broker with a free demo account to see if they are suitable before making a commitment. Please feel free to use our broker comparison tool if you are looking for some further inspiration to help you choose a broker.
About the Author
Richard Montana
Richard has many years of experience in broker research, testing, analysis and reviews. He knows what to look for through years of trading himself with different brokers and listening to the feedback of others.
Review Methodology
For all of our broker reviews, we research, validate, analyse and compare what we deem to be the most important factors to consider when choosing a broker. This includes pros, cons and an overall rating based on our findings. We aim to help you find the best broker according to your own needs. You can read more about our review process.