Forex trading for the USA citizens
In recent years, worldwide FX trading has been on the rise. Day by day, the interest in Forex is growing because traders can easily access it with a small investment and significantly increase their funds. In this regard, the United States of America is no different from any other country.
The brokerage companies in America are strictly supervised by a number of authoritative state regulators and laws, which impose certain restrictions on the residents of the United States. As a result, U.S. brokers are rightfully regarded by investors as a paragon of reliability.
The U.S. has adopted quite a strict legislative set of regulations that brokers must adhere to. Particular attention should be focused on the Dodd-Frank Act. Its main peculiarity consists in the fact that U.S. residents are entitled to trading in foreign exchange only through U.S. companies. Therefore, U.S. brokers value their reputation, demonstrating excellent quality. A wide range of regulations and controlling organizations allows complete control over the intermediaries’ activity and suppresses any possible fraud.
Only reputable Forex companies operate in America. If you are interested in the rating of almost all the best brokers in the United States, go to this page. The list gives you a comprehensive comparison of companies by a number of basic criteria: trading conditions, reviews, etc.
Rules for FX brokers in the US
Several conditions exist which must be adhered to by brokers before they can be registered in the U.S.
- Obtaining a Retail Foreign Exchange Dealer license (RFED), through a rigorous background check;
- A twenty-million-dollar deposit as collateral;
- Most of the income earned by Forex traders must be taxed;
- Brokers should strictly adhere to the hedging rules;
- Physical presence in any location;
- Consent to unannounced regulatory inspections.
Only a handful of the finest forex brokers comply with all the demands of the United States allowing them to provide their services to citizens. Such rules were introduced, in particular, by the aforementioned Dodd-Frank Act, designed to protect individuals from fraud and scams. Since certain prerequisites are difficult to fulfill, many brokers are unlicensed. Therefore, they cannot accept clients from this country.
How to choose a broker?
When selecting a broker, pay attention to such criteria as:
- Broker’s country of registration;
- The range of financial instruments offered;
- The amount of commission for transactions and for maintaining an account;
- The convenience of the trading platform;
- The quality of support and customer service;
- The level of protection for private investors;
- Additional features, such as training courses, mobile applications, and analytical tools.
Trading has reached the peak of development in the US, so American forex brokers offer not only safety and security but also several other important benefits. These include an extensive selection of depositing and withdrawing options, high ratings, 24-hour technical support, and an impeccable reputation.
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.