loading... Loading...

Registered: 24-07-2017
Messages: 114
Rating: 4
18-02-2021 16:26
Forex Trading in the USA - Legal statusIs Forex trading in the USA legal? Not sure what the legal status is for Forex trading within the US? Or have you been wondering How to start Forex trading in the USA? To discover more and have a break down of all of those answers to the questions Read more. 
Is Forex Trading Legal in the USThe simple answer to the question is yes Forex trading in the US is legal, but it also comes with various differences as opposed to trading within any other continent in the world. The US has various different rules and regulations as opposed to other countries. So in answer to your first question – Yes you can trade forex legally with the USA. 
When conducting your research to find if you can trade forex within the US you may have come up against various conflicting messages through various websites and platforms as to the legal status of trading forex within the US, as these legal changes are the major differences between the US forex trading market in comparison to the forex trading market across the rest of the globe. 
Where the US trading market may seem slightly harder and challenging when you are just starting out and ready to explore but as we explain in further detail you will see in the steps that it is actually easier and simpler then you may initially think, subject to remembering the legal changes. A good point to keep in mind in regards to trading in the US forex market is that it is and can be just as straight forward once you have the right guidance as it is across the world. 
Many people may have their own thoughts on forex trading and some have even described it as a form of gambling and believe that in some countries forex trading is in fact illegal but these statements could not be further from the truth. forex trading is in fact allowed in all countries where the currency is allowed (bank exchange offices, currency accounts etc). But forex trading is mainly used for serious purposes as a whole for individuals whether it is business purposes, international investments or importuning and exporting – the list is endless. 
Fact: Forex trading is legal in all countries where the currency is allowed, which is why the forex market is the largest financial market in the world with a daily volume estimated according to Central Bank of FX and OTC of $6.6 trillion per day. With such a staggering volume there is no wonder the forex market is even greater than the stock market. 
In this article, we have placed together and we have broken down in easy and simple terms how to trade within the US forex market, what the legal status is of the US on forex trading and how to start your journey trading forex in the US with some added extras that will benefit your journey in-between including Top US forex brokerage platforms to where you stand being a US and Non-US citizen wishing to invest in the US forex market.  
The legal status of trading Forex in the US 
Can you US residents and Non- US residents Trade Forex?
Consider a US broker 
Finding a US Broker 
List of the top US Forex Brokers
US Investors seeking to trade overseas
The differences in Forex trading in the US
The Bottom Line 
The legal status of trading Forex in the US Many people who are non – professional traders may have made assumptions or advised others that forex trading within the US is illegal and which we have confirmed above it is not and is much readily available and legal within the states. 
The Dodd-Frank law which was legislated and signed into the American law by former President Barack Obama in 2010 with the aim to improve and promote the financial stability within the US, to protect consumers/investors from certain financial services and traders who were not acting legitimately and also to end the “too big to fail” happenings which describes a business or businesses very deeply embedded within the economy that if failed would leave disastrous impacts on the economy which intern would leave the government to look at bailing the company to prevent such disastrous events.
So as an outcome to the Dodd-Frank law placed many limitations throughout the financial system including rules on hedging, a leverage cap over major pairings and exotic pairings and also made mandatory annual tax returns to be carried out by traders and depending on what the trader’s income brackets were was then subject to being taxed further or not. So 60% as normal will be subject to 15% tax and on the further 40% will be dependant on how much income the traders made as to how much money will be taxed. 
Note: Now you will be able to understand and see the reasoning more clearly as to the strictness for US Forex traders. And if traders break these laws a penalty if the rules are broken could be with a heavy fine of up to $2 million which FXCM had to repay the NFA this figure dating back to 2011 due to slippage malpractices. 
The careful and monitored US brokers by the U.S regulating bodies is where the stricter rules apply as the brokers are in fact monitored closely as to their activity. But like with all traders US brokers are no different and do require a licence in order to offer trading services within the states and my goodness is it a difficult and financially challenging process. 
The requirements to become a legitimate forex broker within the US is the main reason it has a smaller margin of US forex traders aside from the individual having to obtain the correct operating licence by a verified US regulatory authority, it also requires the individual to have a $20 million security deposit. 
Yes, you read correctly $20 million for a security deposit to be considered along with a licence to be a broker, whereas for a European trader the deposit is at a cost of $865,000 or EUR 730,000 in comparison. But we will explain in further detail shortly in regards to European brokers working and offering US services to investors. 
To summarise the outcome yes, Forex trading is legal in the US and you can legally trade Forex within the USA. But who can trade, that is the next part to uncover. 
Ready to dive into forex trading?

Can you US residents and Non- US residents Forex Trade?Ok, the simplest answer to this question again is yes, of course. Any nationality can trade Forex within the US but slight limitations may come in the way for US residents. 
For US citizens the process of trading in forex is also not prohibited and US residents can in fact invest and trade in the US forex market. Whether it be online or through a trader however due to the limitations of brokers and the strictness of the American financial market as mentioned above only enables US citizens to have access to various brokers and traders within their home country. But it still doesn’t rule out that avenue for investors to trade. 
For Non-US residents you can also trade forex within the US just as simply and as quickly as anywhere else in the world. For more information to get started smoothly trading within the US forex market visit www.forex.com  
Note – Forex.com not only is it a Global market leader connecting traders around the world, Forex.com offers the full package. From downloadable full suite software to getting you set up ready with additional apps to keeping you connected on the go with extensive amounts of learning material to give you that helping hand through your exciting journey with investing with the US Forex market and much more.  
Consider A Forex Broker in the USA 

For a market that runs 24 hours a day pretty much 7 days a week sometimes as humans, it can be impossible to carry out everything we wish to. So in the bigger picture getting someone who is a qualified expert to help take over this part for you doesn’t seem that bad of an idea right? 
Every forex broker operating within the United States must be registered with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) to be able to operate and offer clients their services as the two companies are operating regulated financial governing bodies. 
Just like brokers from within the U.K have to be registered with The Financial Conduct Authority (FCA) which is the financial regulating body within the UK that enables brokers to forex trade not just within the UK but around the globe.
One of the main reasons European and other brokers around the world do not offer services for US traders is simply as they can not without a regulated licence. As mentioned previously the requirements for US brokers for obtaining a licence to trade within the US is the same for Non-US brokers where a regulated licence needs to be obtained and a security deposit of $20 million is required. 
However having said that there will be brokers within the U.K, Europe and elsewhere around the globe that you may come across that will be able to offer services to US traders but we would advise before investing to please reach out and confirm that the broker is licensed in order to trade within the US and take on US traders. You can do this by contacting the broker directly; contacting the firm or check FAQ’s online for confirmation and clarity before you jump straight in. 
Read More: How to Make Sure Your Forex Broker Is Trustworthy
Finding a US Forex Broker o now that you know that it is possible with ways in which you can trade within the US forex market now you are on the lookout for a US broker to get you started. 
As we have all seen or if not heard of the movie adoption Wolf of Wall Street and with the real-life Jordan Belfort creating his way in the financial market, granted it was in stocks not forex but for non-financial individuals it made individuals relate to the financial market as a whole which in turn has lead to more professional individuals to think a little more in-depth of who they are choosing to help with their investing. Which is why researching becomes your friend to pick out who is suitable for you and including what services suit your needs that the broker can offer to you.  
Looking for a US trader who is approved by the regulating bodies NFA and CTFC is the safest and easiest route to stick with. You will be able to see if the brokerage is NFA or CTFC regulated as it will advise on the company website with the broker detailing their licence status on their file too. 
Note – Please be careful when researching and looking for a US broker as many brokers will seem professional and know the ins and outs but who are not legally registered licensed brokers, which faced in unfortunate circumstances could potentially see your investments or deposit funds lost due to liquidation or unlawful acts being carried out. 
To confirm or to find a broker in question you have found and want to clarify their regulated status you can check the NFA website. Here you will be able to see who is a member of the company and be able to search for your broker in question for confirmation. 
List of the Best US Forex BrokersWhere can I trade Forex in USA?Some of the most popular forex brokers include FOREX.com, IG, and TD Ameritrade.
To find the best platforms for online US Forex trading along with their additional various benefits we have listed below.
Not only did these three forex brokers rank within the best in 2020 but they are also the only major platforms to trade within the US forex market online. 
Top Forex Brokers in the USA
1. Forex.com USA 
Forex.com or (Gain Capital) as previously discussed is not only one of the quickest and easiest platforms with everything you need at your fingertips but the platform which is FCA regulated has all the needed help, guidance and support for your journey from the beginning. 
With videos for beginners to watch and learn their new ways of learning deeper strategies for the more advanced traders. Alongside the downloadable software that is also available along with mobile apps and being apart of the largest trading platforms, MetaTrader. 
Forex.com is a fantastic platform to invest and carry out your joining through US forex trading and forex trading across the world.

Registered: 07-05-2018
Messages: 79
Rating: 0
19-02-2021 11:55
I am an online trader. Mainly I am trading cryptocurrencies. I do not mean I but the digital coins. Instead, I am making money by forecasting the cryptocurrency price direction. In other words, I trade contracts for difference and get profit if my forecasts are correct. You can read more markets com review http://tradersunion.com/brokers/forex/view/markets.com/ [tradersunion.com] if you are interested.

Registered: 30-07-2020
Messages: 14
Rating: 2
09-06-2021 15:31
Great post, and the information is priceless. Forex is a nice platform. I didn't know about certain restrictions. I think as soon as the platform is legal and doesn't allow scam, there should be no restrictions.

Registered: 18-06-2021
Messages: 2
Rating: 0
18-06-2021 16:00
Hmm, making money on forecasting is very interesting, but also risky! What happens in case you forecast wrongly the value of a stock? Because the earning of so many people depend on your results, that's why I'm asking. Relating to Forex trading, of course it's legal. It's an entire niche, regulated by state laws. There are also many platforms with great reputation, as forextb.com [forextb.com]. You just have to declare your earnings. Otherwise, you might get a fine from the authorities. I am curious how do you guys declare these incomes? I had to complete a special form, and then I just present information about my portfolio.
new message - new message

Quick reply form

Reply form preview

You need to register or login to post to this thread