North American forex trading session normally opens midway the European session. The forex market in the West is controlled by the market in the US followed by contributions from other North American countries like Canada and Mexico in addition to the South American market. This is one of the key reasons why forex trading in New York City is highly volatile.
Since the Franc Dodd’s rule, the US market is only controlled by a few forex brokers who can meet the requirement of the new law. The two main ones among them are OANDA and Forex.com with the market mostly dominated by Forex.com after they acquired the clients of Forex Capital Markets (FXCM) banned from operating in the US by the regulatory body.
The major reason while only a few US Forex brokers in 2020 can meet the forex requirement and are available to serve the North American forex market is capital requirements. The NFA rules require all brokers operating in the country to have a minimum capital of 20 million dollars. So, brokerages that don’t fulfil the financial requirement just simply exited from the US market.
Best Forex Brokers in North America
A few top brokers that render services to clients in North America include the following:
1. IG US
IG broker was launched in 1974 and has its headquarters at the Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA, UK. The company operates under the regulatory surveillance of the CFTC and NFA and the minimum account opening requirement of this broker is 250 dollars.
It is easy to open an account with this broker. And due to the user-friendly platform, users can easily access the popular MetaTrader4 (MT4) platform. IG is the owner of the North American Derivatives Exchange (NADEX). However, the two engage in independent operations.
The DailyFX.com which provides free forex news and research website is equally the property of IG. While the company is a popular broker in the UK, the company recently expanded its CFDs trading into the United States market.
Forex.com is regulated by FCA, CFTC, and NFA. Founded in 1999, the company has its headquarters at 135 US Highway 202/206 Bedminster, New Jersey, 07921. Traders can open an account with as low as 50 USD with this broker. Forex.com is presently one of the largest forex brokers to cater to the US market and in extension the North American market. The forex trading platform is the property of the GAIN Capital Holdings which is listed on the New York exchange.
The company directly competes with FXCM to dominate the U.S market until it acquired the customers of FXCM after they were banned by CFTC from the US market. They are popular among forex traders due to their integrity. If you are planning to trade forex from the North American countries, Forex.com is one of the top brokers to partner with.
The Nadex or the North American Derivatives Exchange is a forex trading platform and exchange for short-term traders that are searching for ways to make money in the investment markets. Launched in 2009, the company is regulated by the CFTC and traders can open an account with a minimum deposit of 250 USD. A Nadex account allows the trader to trade binary options, touch brackets, and call spreads.
Nadex is currently accessible online and with the account, traders can trade for 1 USD for every contract. Trading in this manner is legal. It is overseen by the Commodity Futures Trading Commission. However, it is a high-risk trading method only recommended for veteran traders with enough amount of experience.
TradeStation is the US and international brokerage that caters to the needs of active and experienced traders. It provides one of the best trading platforms in the market and users can access both standard and unbundled pricing which can result in commission and fee savings. The platform may be a little intimidating for newbies since it is designed for advanced traders. However, there are a few resources meant for beginners. The company was launched in 2005 with its headquarters located at 121 Mortlake High Street, London, SW14 8SN. It is regulated by FCA and traders can open an account with the broker using a minimum of 1000 USD. It is a good broker to partner with if the company offerings meet your trading needs.
Oanda is regulated by IIROC and makes more than 100 markets accessible to Canadian traders. Oanda is one of the top Canadian forex traders for 2020. Oanda is one of the top forex brokers globally and in North America for its excellent research and trading tools. It equally comes with advanced charting and access to the Oanda Algo Lab. The maximum leverage is 50:1. Besides, the company utilizes a transparent, competitive pricing model which no minimum deposit requirements.
These brokers are a good option is you are a forex trader or an aspirant living in any of the North-American countries. The one you go within the end depends on your trading goals and what they offer to traders.