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Forex Brokers Accepting US Clients

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In the 2000s decade, more than forty forex brokers were operating within the United States retail FX market. This number dropped to just three after US lawmakers passed new laws in 2010 that changed the regulatory landscape. This situation left many US forex traders with limited choices. Those unable to afford the new $25,000 minimum deposit requirements imposed by the new regulatory requirements had to look towards offshore jurisdictions or quit the industry entirely. This situation inadvertently created a need for forex brokers accepting US clients outside the US.

The Problem Confronting US Forex Clients

The new regulatory requirements that mandated a minimum of $25,000 as the minimum deposit balance appears a bit too steep, considering the following national statistics on the finances of average Americans. A 2016 GOBankingRates survey showed that only 35% of US adults had several hundred dollars in their savings accounts. 34% had zero savings. Only 15% had over $10,000 saved up. Following the COVID-19 pandemic, here's how those numbers stacked up.

  • The average amount in personal savings fell 15% year on year, according to Northwestern Mutual's 2022 Planning and Progress Study.
  • 21% of Americans have no savings.
  • 70% of Americans have less than $1,000 in their savings, up from 58% in 2019.
  • 12% have savings of between $1,000 and $5,000.
  • Only 5% of Americans have savings of between $10,000 and $20,000. This is down from 15% six years earlier.

During the COVID-19 pandemic, the financial markets brimmed with opportunity, and those with access to these markets with the proper strategies and risk management techniques could stay afloat. Those who had no access faced the grinding impact of the pandemic. In a country where only 5% of adults have savings between $10,000 and $20,000, the regulatory requirements locked out many from the FX market. Therefore, it is no surprise that those without access to the US forex market began to seek alternatives offshore. This is not an easy task, as it subjects US clients wishing to trade to several challenges.

What are the challenges facing US forex clients?

  • Current forex brokers operating in the US do not offer MT4 and MT5 trading platforms. This situation robs US forex clients of the opportunity to use arguably the best retail forex trading platform. It also denies them the opportunity to access the tools that come with the MQL marketplace, specialized optimized to enable MT4/MT5 users to get an edge over their peers in trading.
  • Under US tax laws, all income earned by US citizens worldwide is subject to tax. Not many companies want to onboard US clients as they may be subject to reporting requirements which may make their business positions untenable. A US forex trader trying to secure a forex broker willing to take on their business is an exercise that leads to frustration if undertaken single-handedly.
  • US forex clients love exposure to assets they are familiar with. As such, US forex pairs, US indices and commodities, all US Dollar denominated, are the favourite assets for this class of traders. They need brokers that offer these assets with generous contract specifications.
  • Restrictive leverage as it operates in the US market has driven out many traders from the market altogether. The need to work with forex brokers that offer more generous leverage conditions is a common denominator for all traders.
  • US forex clients desperately seek brokers with lower entry requirements so they are not shut out of the FX market. Many US forex clients cannot afford the minimum deposit requirement of $25,000. This showcases the need for a more pocket-friendly approach to minimum deposit requirements.

Forex Brokers Accepting US Clients (Outside of US): What US Forex Clients Stand to Gain

The challenges confronting US forex clients trying to get forex brokers outside the US to handle their business have been summed up. This is what US forex clients stand to gain if they pick a forex broker from our curated list.

  1. The forex brokers accepting US clients provide unlimited access to the MT4 and MT5 trading platforms. It is no longer news that Apple Inc (an American company) and makers of the iPhone and Mac computers have delisted the MT4 and MT5 apps from its app store. The reason has not been made clear but may not be unconnected with the sanctions placed on Russia because of the war in Ukraine. Metaquotes, a Russian company, is behind MT4 and MT5. The conflict has put US-Russia relations at odds, and this has trickled into the forex market. But not anymore, as the forex brokers accepting US clients (outside the US) in our list provide access to these two platforms. Another advantage here is that all the plugins and extra resources available from the MQL marketplace are at the beck and call of the US forex clients.
  2. Access to US-focused asset base spanning currencies, commodities and indices. All commodities are dollar-denominated. Thankfully, the US Dollar pairs are the most popular in the forex market and command the highest trading volumes. This means that US forex clients will get access to trading several USD pairs in the FX market. Therefore, access to trading gold, silver, platinum, palladium, copper, and other commodities is a pathway to trading these commodities, paired with the US Dollar. The US indices (Nasdaq 100, US30 and S&P 500 index) are the most popular stock indices in the market today. The forex brokers accepting US clients also offer a more expanded cryptocurrency CFD base than those domiciled in the US.
  3. There is a large pool of forex brokers accepting US clients to choose from who will give you reasonable minimum deposit amounts. The forex brokers accepting US clients (outside of the US) do not require as much as $25,000 as a minimum account deposit. There is no way to expect citizens who are overburdened with credit card debt and who scarcely have $10,000 in savings to come up with the amount being demanded as a minimum deposit by US-based brokerages. The result is that most, if not all, retail forex traders from the US will have no access to the market. Some forex brokers accepting US clients (outside of the US) have various account types with different contract specifications. This ensures that traders can open an account with the capital they can afford.
  4. Leverage is extra capital provided to boost the volume of a trade position without the trader committing extra capital beyond a required threshold. Forex brokers accepting US clients (outside the US) will ensure that the US forex clients have access to leverage that is not restrictive. Traders can choose their preferred leverage from the various leverage sizes beyond the 1:30 allowed in the US. If the US forex clients prefer the high-leverage forex brokers listed on this site, then they are free to choose from there.

Conclusion

There is a reason why the forex brokers accepting US clients (outside of the US) have become a viable alternative to using US-based brokerages. The laws governing retail forex trading in the US have priced out a large percentage of those simply looking for the same opportunity that their peers worldwide have access to. US forex clients seek a chance to engage in forex trading to seek alternative income in a global economy that has suffered untold damage from the COVID-19 pandemic. Under the administration of President Trump, there were hopes that some of the rules would be relaxed to attract back investment and traders into the market. This did not materialize, making the brokers on this list a viable alternative.