Broker selection
Forex trading in the US: the rules to know
Retail forex in the United States is regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). The rules are stricter than in most countries, and many international brokers cannot accept US clients.
Guide · 7 min read Updated 3 Nov 2026 Reviewed by the research desk
Who can offer forex to US clients
A firm offering retail forex to US residents must be registered with the CFTC as a retail foreign exchange dealer (RFED) or futures commission merchant (FCM) and be an NFA member. You can check any firm on the NFA's BASIC database.
An offshore broker that accepts US clients without registration is operating outside US rules, and you would have little protection if something went wrong.
Leverage on major pairs
Up to 50:1 (2% minimum security deposit)
Leverage on other pairs
Up to 20:1 (5% minimum security deposit)
No hedging
You cannot hold buy and sell positions in the same pair in one account at once
First in, first out (FIFO)
Positions in the same pair must be closed in the order they were opened
CFDs
Not available to US retail clients
What this means in practice
Platforms used by US brokers enforce FIFO and no-hedging automatically. Expert Advisors written for hedging accounts may not work as expected. The lower leverage means more margin per position than offshore offers advertise.
Before you open an account
✓Search the firm on NFA BASIC and confirm it is registered as an RFED or FCM.
✓Check the exact legal name and website match the NFA record.
✓Read the risk disclosure the firm is required to provide.
✓Confirm which platforms and pairs are available to US accounts.
Red flags
✕A broker offering 1:500 leverage to US residents. That is above US limits.
✕Being told to claim a non-US address. Never misstate your residency to open an account.
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Written by the Forex Awards research desk
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