Hello,
I’m looking for a broker regulated in the US. (Don’t want what happened to a lot of people with JAFX happen to me)
Any suggestions?
People keep telling me to use Hugo’s Way and LMFX, however they are not regulated in the US.
If you are a new trader, without prior, successful trading experience, then I strongly suggest that you start with one of the regulated US brokers.
Ignore offshore opportunities (such as HugosWay and LMFX) for now.
After you have learned this business, trading with your US broker, if you are interested in pursuing opportunities with offshore brokers, those opportunities may still be available in the future – although, that is far from assured.
As for US-regulated brokers, the bad news is that you have exactly two choices:
Gain (aka forex.com), and Oanda.
It wasn’t always this way. Ten years ago, we had many more choices here in the US. We had access to attractive leverage, and access to useful trading conditions. Then the CFTC got control of US retail forex and created the situation we face today.
The retail forex market in the US is being deliberately destroyed by the regulator (CFTC) you seem to respect so much.
This post, from a year and a half ago, addressed a question similar to yours – Newbie Looking For A Good US-Based Broker
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Forex.com is an advertiser here.
Oanda and Gain Capital are the other two I think are available here in US.
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Interactive Brokers is one of the oldest US brokers. But, the problem is that their initial deposit is around 10-15k US dollars.
Forex .com is the retail division of Gain Capital.
Oanda and Gain are not “the other two” – they are “the only two”.
No, the problem is that you have to be an Eligible Contract Participant, with a net worth of $10M, in order to trade spot forex with Interactive Brokers. From the IB website –
Interactive Brokers ECP requirement:
- U.S. Clients with IBLLC accounts, and Fully Disclosed Broker Clients from the U.S. generally must be Eligible Contract Participants to be eligible to trade Cash Forex. An Eligible Contract Participant is generally an individual or organization with assets of over $10 MM (or $5 MM if trades are hedging). The complete definition is located in Section 1a(18) of the Commodity Exchange Act. For more information about the Commodity Exchange Act, see the U.S. Commodity Futures Trading Commission website, or read the complete definition here.
I cannot understand why the topicstarter is looking for regulated US broker. There is a lot of offshore brokers, quite reliable btw
JAFX is a perfect example of why I don’t trust offshore brokers. A lot of people I know have been waiting over six months for their money after their “scandal”
If there is a trusted offshore broker, I’m happy to look into them.
why not checking a demo account which costs not even a cent but trying a demo account can be helpful in evaluating this broker at your own, even offshore ones.
They are a very expensive broker for traders with huge pocket. I am sure they are safe as well. I long for when I will grow my portfolio to trade with such brokers. I also want to know what their trading fees are
If, and when, your net worth grows to the point that you qualify as an Eligible Contract Participant,
you will be able to trade with virtually any broker in the world, without contending with the foolishness we currently face as retail traders, at the hands of the CFTC.
At present, there are only two forex brokers in the U.S. available to retail traders – they are
Gain Capital (forex .com) and Oanda, as mentioned previously in this thread.
And, at present, there are very few offshore forex brokers who have the political and legal cover, and the courage, to welcome U.S. retail traders, in the face of the CFTC’s worldwide efforts to restrict, and ultimately destroy, off-exchange retail forex trading. In our Offshore Broker Thread, we have identified 13 such brokers, and we host a lively debate on their merits, as well as their faults.
That’s a pathetic total of 15 brokers from which U.S. retail traders can choose, out of a worldwide list of more than a thousand retail forex brokers. To see a sampling of the huge list of brokers available to traders elsewhere in the world, check out the Alphabetical List of Brokers in posts #3, #4, and #5 in the Offshore Broker Thread.
Some of the most highly-respected brokers in the world, in countries such as Switzerland, the U.K., and Australia, are not available to U.S. retail forex traders, because the Nanny State has bestowed on the CFTC the dictatorial power to harass and prosecute any offshore broker who dares to deal with U.S. retail traders.
America, Land of the Free? – Not in the retail forex market.
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I agree JAFX is scandalous but read on another forum that JAFX is Hugo’s Way. And i always thought they might be distant cousins of trader’s way lol but anyhow it turns out they have something to do with JAFX fishy huh!