Best USA Trading Platforms & Brokers Regulated by SEC

Written by Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: October 30, 2024

Our team of expert traders tested several regulated and trustworthy USA trading platforms and compiled a toplist with the best among them. Each trading platform operating in the United States received a quality score based on several factors, including Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service and more.

The United States is home to one of the toughest financial regulatory environments in the world, which we consider both a blessing and a curse. On one hand, the tight regulations preserve the integrity of the local financial industry, protect consumers, and ensure fair trading opportunities for all market participants. On the other hand, the harsh regulatory climate, paired with the high capital requirements brokerage firms must meet to obtain authorization, has resulted in a mass exodus of brokers from the country. This reflects poorly on US traders, leaving them with a severely restricted choice of licensed trading sites.

With that in mind, trading in the US is mainly regulated by two governmental agencies. The Securities and Exchange Commission (SEC) oversees the operations of stock exchanges in the country, while the Commodity Futures Trading Commission regulates forex transactions, commodities, and futures. These bodies are assisted in performing their duties by two self-regulatory organizations, the Financial Industry Regulatory Authority (FINRA) and the National Futures Association (NFA).

Licensed brokerage firms operating in the US can legally provide trading with stocks, indices, options, futures, exchange-traded funds, bonds, spot forex, and commodities, among several other financial instruments. US traders can leverage their spot forex and stock positions to gain greater market exposure but contracts for difference (CFDs) remain illegal in the country for the time being. Continue reading as we explore the financial regulatory climate in the US in further detail. But first, let’s have a look at the ten best brokers that accept US traders.

Regulators	US Securities and Exchange Commission (SEC) Financial Industry Regulatory Authority (FINRA) US Commodity Futures Trading Commission (CFTC) National Futures Association (NFA)
Forex Trading Leverage	50:1
Stocks Leverage	4:1
CFD Leverage	N/A

The Best US Brokers

Choosing a reliable online broker that corresponds to your individual investment goals and requirements is crucial if you want to gain a competitive advantage while trading from the comfort of your surroundings. To assist you in making the right choice, TradingPedia evaluated all major online brokers authorized to transact with US traders.

We compared them side by side and tested their services against several key criteria, including trading costs, software and technology, range of tradable assets, and research and educational content. Using this methodology, we narrowed down the list to what we consider the ten best online brokers on the US market. Our selection includes brokerages that are suitable for a broad range of traders, from seasoned self-directed investors to rookies who are just starting their online trading journey.

TRADE NOWREAD REVIEW
Regulators
Cyprus Securities and Exchange Commission (CySEC)
Financial Conduct Authority (FCA)
Seychelles Financial Services Authority (SFSA)
Australian Securities and Investments Commission (ASIC)
Platforms
CopyTrader, Proprietary Web Platform, Mobile Apps for iOS and Android
1. eToro
Min Deposit
$100
Fees
No fees on withdrawals and deposits
A $10 monthly maintenance fee after one year of inactivity
Deposit Methods
Commissions
1% fee on long cryptocurrency positions
Spread
Spreads vary on a per-asset basis
Withdrawal Methods
Leverage EU
N/A
Leverage non-EU
N/A
Instruments
Cryptocurrencies
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.Options involve risk and are not suitable for all investors. Please review Characteristics and Risks of Standardized Options prior to engaging in options trading. Content, research, tools, and stock symbols on eToro’s website are for educational purposes only and do not imply a recommendation or solicitation to engage in any specific investment strategy. All investments involve risk, losses may exceed the amount of principal invested, and past performance does not guarantee future results.
*eToro does not offer leveraged CFDs to customers from the US.
In business since 2007, eToro is home to a massive investor community comprising over 30 registered clients worldwide. The brokerage services customers from more than 100 jurisdictions.
Deposits at eToro come at no extra cost and start at $100. If you are not ready to commit with a live account yet, you can build your knowledge and experience by creating a free demo account. The demo account is topped up with $100,000 in virtual money, giving you plenty of funds to practice with.
TRADE NOWREAD REVIEW
Regulators
US Commodity Futures Trading Commission (CFTC)
US Securities and Exchange Commission (SEC)
Australian Securities and Investments Commission (ASIC)
UK Financial Conduct Authority (FCA)
Hong Kong Securities and Futures Commission (SFC)
Investment Industry Regulatory Organization of Canada (IIROC)
Central Bank of Ireland (CBI)
Central Bank of Hungary (CBH)
Monetary Authority of Singapore (MAS)
Luxembourg Commission de Surveillance du Secteur Financier (CSSF)
Platforms
IBKR GlobalTrader, IBKR APIs, IBKR EventTrader, IMPACT, Trader Workstation (TWS), Web Client Portal, IBKR Mobile
2. Interactive Brokers
Min Deposit
No minimum deposit requirements
Fees
One free withdrawal per month
No inactivity fees
No fees for electronic deposits
Deposit Methods
Commissions
IBKR Lite Accounts
$0 per share for US stocks
$0.005 per share for other stocks
$0.65 per options contract
$0.85 per futures contract
0.08 to 0.20 pts multiplied by the trade size for spot currencies
IBKR Pro Accounts
$0 per share for US-listed stocks, $0.0005 to $0.0035 per share for other stocks
$0.15 to $0.65 per options contract
$0.25 to $0.85 per futures contract
Spread
From 0.1 pips for spot currencies
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
Margin requirements vary based on the type of tradable asset
Instruments
Spot Forex, spot gold, ETFs, options, stocks, futures, hedge funds, bonds, mutual funds, cryptocurrencies, single stock futures (SSFs), event contracts
Options involve risk and are not suitable for all investors. For more information read the Characteristics and Risks of Standardized Options, also known as the options disclosure document (ODD). Alternatively, please contact IB Customer Service to receive a copy of the ODD. Before trading, clients must read the relevant risk disclosure statements on our Warnings and Disclosures page. Trading on margin is only for experienced investors with a high risk tolerance. You may lose more than your initial investment. For additional information about rates on margin loans, please see Margin Loan Rates. Security futures involve a high degree of risk and are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, read the Security Futures Risk Disclosure Statement.
Interactive Brokers is a NASDAQ-listed online trading site that serves clients from more than 200 jurisdictions worldwide, allowing them to trade in a huge range of financial instruments. From stocks and spot currencies to futures, bonds, and options, Interactive Brokers poses a great choice for US investors looking for excellent trading conditions.
The brokerage offers ridiculously low pricing, with zero commissions on US-listed stocks. Trading spot metals is also possible at Interactive Brokers where you can purchase gold in quantities as small as a single ounce. Binary options-style event contracts are available for all major futures markets, offering fixed payouts of $20.
The company caters to customers with a solid range of proprietary platforms suitable for desktop, browser, and mobile trading. Two main account types are available, starting with IBKR Lite, which is mostly geared toward the needs of casual investors. IBKR Lite gives you access to free trades with stocks and ETFs traded publicly on the biggest exchanges in the United States.
IBKR Pro accounts are more suitable for advanced investors who will also benefit from very friendly trading conditions, including low per-share commissions of $0.005 only. It is worth mentioning that Lite accounts come with fixed pricing whereas the applicable commissions on Pro accounts are tiered and depend on your order size. Both account types come with no minimum deposit requirements and incur no maintenance fees for inactivity.
Interactive Brokers enables customers to limit their risk by offering them a range of advanced order types, including trailing stop, stop with protection, request-for-quote, bracket, and stop limit. The broker works with several well-known third-party algo providers like Jefferies and Fox River to deliver additional order types to advanced traders.
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Regulators
Commodity Futures Trading Commission (CFTC)
Securities and Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
Monetary Authority of Singapore (MAS)
Investment Industry Regulatory Organization of Canada (IIROC)
Platforms
Thinkorswim Desktop, Thinkorswim Web, Mobile Apps for iOS and Android
3. TD Ameritrade
Min Deposit
$50 for ACH transfers; no minimum requirements for wire transfers and checks
Fees
Free deposits
$25 fee for wire transfer withdrawals
No inactivity fee
Deposit Methods
Commissions
No commissions on stock and ETF trades
$0.65 per options contract
$2.25 per futures contract
Spread
From 1.2 for major forex pairs
Withdrawal Methods
Leverage EU
N/A
Leverage non-EU
2:1, 3:1, or 4:1 for stocks (depends on one’s account balance)
Instruments
Stocks, options, ETFs, mutual funds, futures, currency crosses, bonds, certificates of deposit (CDs)
All investments involve risks, including the loss of principal invested. Past performance of a security does not guarantee future results or success.
TD Ameritrade is one of the most popular online brokerages that cater to investors from the US market. It provides a far-reaching product offering and facilitates low-cost trading with currency pairs, stocks, exchange-traded funds, futures, options, bonds, certificates of deposits, and mutual funds. Trading with stocks and exchange-traded funds is commission-free. Spreads on currency crosses at TD Ameritrade align with the industry average.
The broker uses a proprietary platform called Thinkorswim, which is compatible with most desktop and mobile devices. The platform can accommodate the needs of all customers no matter what type of instruments they like to trade with and where they are in their trading journey.
Trading with contracts for difference (CFDs) is obviously impossible at TD Ameritrade but US customers who open margin accounts can increase their purchasing power with 2:1 leverage. Higher leverage ratios are available to margin traders with a larger balance.
Registering for an individual trading account is a simple and hassle-free process, with customers facing several familiar deposit options like ACH transfers, wire transfers, checks, and broker-to-broker transfers. Deposits are free of charge. Withdrawals requested via wire transfers incur a $25 processing fee. The broker targets mainly customers from the United States but also accepts traders from several other jurisdictions, including Singapore and Canada.
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Regulators
US Commodity Futures Trading Commission (CFTC)
UK Financial Conduct Authority (FCA)
Australian Securities and Investments Commission (ASIC)
New Zealand Financial Markets Authority (FMA)
German Federal Financial Supervisory Authority (BaFin)
Monetary Authority of Singapore (MAS)
Dubai Financial Services Authority (DFSA)
Financial Sector Conduct Authority of South Africa (FSCA)
Bermuda Monetary Authority (BMA)
Platforms
MT4, Proprietary Web Platform, Mobile Spot Forex Apps for iOS and Android
4. IG
Min Deposit
$250 - $99,999 per day for debit-card deposits
Fees
$12 monthly maintenance fee after two years of inactivity
Free deposits and withdrawals
Deposit Methods
Commissions
Zero commission for spot currency trades
Spread
From 0.8 pips for EUR/USD
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
50:1 for some forex majors (2% margin)
Instruments
Forex pairs
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.
IG is a world-leading broker that provides low-cost trading with over 80 major, minor, exotic, and emerging currencies. The company accepts clients from the US market with a license issued by the Commodity Futures Trading Commission (CFTC). The broker is also a member of the National Futures Association (NFA), which further adds to its credibility and reputation. IG charges no commissions on foreign exchange trades and offers spreads as low as 0.8 pips, allowing customers to save on trading costs.
Apart from its robust proprietary browser-based platform, IG facilitates trading via ProRealTime and MetaTrader 4. Customers have access to multiple timeframes, customizable technical indicators, and chart trading. Those unfamiliar with the company’s proprietary software can test it by opening free demo accounts funded with $10,000 in virtual money.
Traders can build their knowledge and skills by participating in free online courses, seminars, and webinars. The broker offers brief and easy-to-digest courses and complements them with interactive exercises, videos, and interesting facts about the financial markets. Each lesson available in the IG Academy ends with a short quiz, allowing traders to identify and iron out their weak spots. There are suitable courses for all experience levels, from beginner to advanced.
Customer support is reachable via live chat, although the site also features a comprehensive help section that provides answers to the most common questions new customers might have. Deposits and withdrawals are not associated with additional costs but inactive traders are subject to a $12 monthly maintenance fee if their accounts remain dormant for two or more years.
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Regulators
Commodity Futures Trading Commission (CFTC)
Investment Industry Regulatory Organization of Canada (IIROC)
Cyprus Securities and Exchange Commission (CySEC)
Financial Conduct Authority (FCA)
Hong Kong Securities and Futures Commission (SFC)
Australian Securities and Investments Commission (ASIC)
Japan Financial Services Agency (FSA)
Monetary Authority of Singapore (MAS)
Cayman Islands Monetary Authority (CIMA)
Platforms
MT4, TradingView, Proprietary Web Platform
5. Forex.com
Min Deposit
$100 ($10,000 maximum)
Fees
Free deposits
$25 for domestic wire-transfer withdrawals below $10,000
A $15 monthly maintenance fee after one year of inactivity
Deposit Methods
Commissions
No commissions on Standard accounts
A $5 fixed commission per $100,000 in traded volume for Commission accounts
Spread
From 0.2 pips for Commission Accounts
From 1.2 pips for Standard Accounts
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
50:1 (2% margin requirement)
Instruments
Forex, gold, silver, futures, futures options
FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosures and Risk Warning. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Increased leverage increases risk.
Forex.com is a CFTC-regulated broker that offers a well-rounded selection of tradable instruments, including spot forex, gold, silver, futures, and options. The broker focuses on providing a seamless trading experience to its customers via an easy-to-navigate proprietary platform that supports trading with 82 currency crosses and precious metals.
Clients have access to multiple order types, configurable watchlists, and single-click trading. The proprietary software features an economic calendar and advanced performance analytics tools that enable users to review their past trading behavior. This browser-based platform is also packed with state-of-the-art drawing tools. Over 80 technical indicators are available, alongside more than ten chart types.
MetaTrader 4 is a viable option for customers of Forex.com who open Standard accounts. The third-party software supports free VPS hosting and gives users access to the MetaTrader Market where they can purchase automated trading robots known as Expert Advisors (EA). By comparison, the proprietary platform offers a choice of Standard, Commission, and STP Pro accounts. Either way, traders can explore the markets from any device of their choice as both platforms are compatible with desktop and mobile devices.
The broker is fully transparent about its trading costs and offers tight variable spreads from 1.2 pips for commission-free Standard accounts. The spreads are even lower at 0.2 pips for Commission accounts, but the rub is clients are charged a $5 commission for every $100,000 they trade. The client-centric broker provides outstanding customer support via a dedicated live chat facility. Forex.com customers who set up live accounts can transact with broadly available payment methods like debit cards, wire and ACH transfers.
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Regulators
Commodity Futures Trading Commission (CFTC)
Securities and Exchange Commission (SEC)
Platforms
Web Proprietary Platform, Active Trader Pro, Fidelity Solo FidFolios, Stocks by the SliceSM
6. Fidelity Investments
Min Deposit
No minimum account requirements
Fees
Free deposits and withdrawals
No inactivity fee
Deposit Methods
Commissions
Zero commissions for US-listed stocks and ETFs
$0.65 for options contracts
Spread
Unspecified
Withdrawal Methods
Leverage EU
Unspecified
Leverage non-EU
9% - 13.32% margin requirement
Instruments
Stocks, fractional shares, options, mutual funds, ETFs, precious metals, certificates for deposit (CDs), Initial Public Offerings (IPOs), bonds
Investing involves risk, including risk of loss. Before investing, consider the investment objectives, risks, charges, and expenses of the mutual fund, exchange-traded fund, 529 plan, Attainable Savings Plan, or annuity and its investment options. Contact Fidelity for a prospectus, offering circular, Fact Kit, disclosure document, or, if available, a summary prospectus containing this information. Read it carefully.
Fidelity Investments, or Fidelity for short, is an established financial services provider with over 70 years of experience in the financial markets. The history of the Boston-based company dates back to the mid-1940s when it was known as Fidelity Management & Research (FMR). Today, Fidelity Investments has more than 42 million clients worldwide, offering them a large assortment of financial services. These range from financial advice, wealth management, and retirement plans to online trading with stocks, options, and ETFs.
With such an impressive track record, it is no surprise Fidelity is the go-to broker of many US traders who insist on competitive pricing, quality, and superior order execution. The company boasts an outstanding selection of tradable products and a broad range of research tools that allow customers to make better-informed trading decisions. Trading with fractional shares is also possible at Fidelity, which is not something many brokers can brag about. The broker’s browser-based platform is more fitting for beginners, while well-versed investors can trade via the more advanced Active Trader Pro. The latter offers several advanced order types, including trailing stops and conditional orders.
Smartphone users can stay on top of the markets with the help of Fidelity’s award-winning mobile app available for Android and Apple portable devices. Customers will benefit from competitive margin rates that start at 9% and can trade US stocks and ETFs commission-free. Transactions to and from your live trading account are possible via familiar payment methods, such as ACH transfers, PayPal, and wire transfers but deposits via debit or credit cards are unsupported. The broker charges no deposit, withdrawal, or inactivity fees and has no minimum deposit requirements.
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Regulators
Securities and Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
Commodity Futures Trading Commission (CFTC)
Platforms
Power E*TRADE Web Platform, Mobile Apps for Android and iOS
7. E*TRADE
Min Deposit
No minimum deposit requirement
Fees
No maintenance fees for inactive accounts
Free deposits
Free ACH withdrawals
A $25 fee for bank wire withdrawals
Deposit Methods
Commissions
$0 commission on US stocks, mutual funds, and ETFs
$0 commission for US Treasury bonds
$0.65 per options contract (or $0.50 for clients who open 30 or more options, ETF, or stock contracts per quarter)
$1.50 per futures contract
Spread
N/A
Withdrawal Methods
Leverage EU
N/A
Leverage non-EU
2:1
Instruments
Mutual funds, futures, options, stocks, bonds, ETFs, certificates of deposit (CDs)
Important Note: Futures and options transactions are intended for sophisticated investors and are complex, carry a high degree of risk, and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure Statement for Futures and Options prior to applying for an account.
E*TRADE is one of the most established financial services providers operating in the United States. Founded in the early 1980s, the company provides a healthy range of services, including retirement planning, wealth management, and professional investment advice. Now part of the Wall Street behemoth Morgan Stanley, E*TRADE is also considered a trailblazer in online retail trading. The operations of the company are overseen by first-tier regulators like the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
E*TRADE delivers an industry-leading experience, allowing clients to trade with stocks, bonds, futures, options, ETFs, certificates of deposit, and mutual funds. Customers can set up individual, joint, or custodial brokerage accounts and there are no minimum funding requirements. Stock trading is affordable with this brokerage as no commissions are charged on positions that involve US-listed stocks. Trades with US Treasury bonds are also commission-free. Options cost $0.65 per contract unless you execute more than 30 stock, options, or ETF trades every four months, in which case the commission rate drops to $0.50 per contract.
These financial instruments are accessible via a sleek proprietary platform that requires no additional software downloads. The broker also facilitates mobile trading via highly intuitive native apps for Android and iOS devices. The platform is packed with sophisticated tools for technical analysis and risk management, including numerous chart types and over 30 drawing tools. Other than that, the broker charges no deposit or inactivity fees but withdrawals requested via bank wire transfers might incur additional costs of $25.
TRADE NOWREAD REVIEW
Regulators
Securities and Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
Platforms
Proprietary Platform, Mobile Apps for iOS and Android
8. Robinhood
Min Deposit
No minimum deposit requirement
Fees
Free deposits
Free bank transfer withdrawals
1.5% fee for instant debit card and bank account withdrawals
No maintenance fees for inactive accounts
Deposit Methods
Commissions
$0 commissions for options contracts
Spread
N/A
Withdrawal Methods
Leverage EU
N/A
Leverage non-EU
50% minimum margin
Instruments
Cryptocurrencies, options, stocks, ETFs
All investments involve risk, including the loss of principal. The past performance of a security, cryptocurrency, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not ensure profits, or protect against loss. Customers should consider their investment objectives and risks carefully before investing in securities or buying/selling cryptocurrencies.
Robinhood is a reliable financial services provider that offers commission-free trading with stocks, cryptocurrencies, options, and exchange-traded funds. Its authorization from the Securities and Exchange Commission (SEC) paired with its FINRA membership renders it a safe destination for traders from the United States. Customers can anticipate no commissions or spreads on their trades. Robinhood profits mostly from margin lending, interest on clients’ cash balances, and payments for order flow (PFOF). The company receives compensation for routing client orders to different market makers and liquidity providers for execution.
Trading with fractional shares and ETFs is possible and very affordable at Robinhood. Fractional shares are available for all stocks with a market capitalization that exceeds $25 million. The stocks must also be priced at $1 or more per share to be available for fractional trading. Robinhood is friendly to novice investors as it has no minimum account requirements. You can start with as little or as much money as you can afford.
Clients can increase their purchasing power through margin, with minimum margin requirements set at 50%. Robinhood uses a proprietary browser-based platform that is both easy to work with and highly efficient. Customers can stay connected to their Robinhood accounts while on the go via sophisticated native apps compatible with iOS and Android. Robinhood is also registered with the Securities Investor Protection Corporation (SIPC), which means investors are compensated with up to $500,000 in the event of losing their securities or cash balance held by the company.
TRADE NOWREAD REVIEW
Regulators
Financial Industry Regulatory Authority (FINRA)
Securities and Exchange Commission (SEC)
Securities and Futures Commission of Hong Kong (SFC)
Monetary Authority of Singapore (MAS)
Platforms
Proprietary Desktop and Web Platforms, Mobile Apps for iOS and Android
9. Webull
Min Deposit
No minimum deposit requirement
Fees
Free ACH deposits if successful
An $8 fee for deposits with domestic wire transfers and $12.50 for international wire transfers
A $25 fee for withdrawals with domestic wire transfers and $45 for international wire transfers
No inactivity fee on dormant accounts
Deposit Methods
Commissions
$0 commission on stock and ETFs trades
Spread
100 basis points
Withdrawal Methods
Leverage EU
N/A
Leverage non-EU
4:1 for day trades
2:1 overnight buying power
Instruments
Stocks, options, ETFs, cryptocurrencies, indices
All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Webull is one of the younger financial services providers on the US market as it was launched in 2017 by Wang Anquan, the former technology director of Alibaba Group. Despite its relatively young age, the company quickly attracted the attention of traders and has more than 13 million registered users at the time of publication. The success of Webull is anything but shocking, considering the company facilitates commission-free trades with ETFs, stocks, and options. It launched cryptocurrency trading in 2020.
Trading with this SEC-authorized broker is possible via an easy-to-use web platform that gives you instant access to the financial markets. A downloadable version of the proprietary software is available as well. Downloading the platform is recommended as it gives you access to a broader range of features and functionalities.
Speaking of which, customers of Webull can take advantage of advanced charting tools that enable them to identify and follow the latest market trends. Over 50 technical indicators and more than 60 technical signals are available to savvy traders, allowing them to take their experience to a whole new level. The platform’s layout is configurable, which makes it easy for users to tailor their trading activities to their individual investment goals and style.
At Webull, you also have the opportunity to put new strategies to the test before risking any real money. The company provides a virtual stock trading simulator that closely replicates the experience of investing in the real-life stock market. As for payments, your options are limited to ACH and bank wire transfers. Transactions initiated through wire transfers might incur hefty fees, which is one of the few downsides of trading with WeBull.
TRADE NOW READ REVIEW
Regulators
Financial Industry Regulatory Authority (FINRA)
Platforms
Zacks Trade Pro, Client Portal, Mobile Apps for iOS and Android
10. Zacks Trade
Min Deposit
$2,500 minimum required balance
Fees
A $15 maintenance fee for accounts whose balance is below $25,000
One free withdrawal per month
Subsequent withdrawal fees: $1 for ACH transfers, $10 for bank wire transfers, $4 for checks
No deposit and order cancellation fees
Deposit Methods
Commissions
$0.01 per share for ETFs and stocks valued at more than $1 per share
1% of the trade’s value with a $1 minimum for ETFs and stocks valued at less than $1 per share
$1 for first options contracts, plus $0.75 for additional contracts
From 0.12% to 0.18% for cryptocurrencies, depending on the monthly trade volume
Spread
Unspecified
Withdrawal Methods
Leverage EU
Unspecified
Leverage non-EU
2:1 for overnight positions
4:1 for day trades
Instruments
Stocks, ETFs, options, corporate and government bonds, mutual funds
Margin trading involves risks and is not suitable for all investors. Trading on margin can result in interest charges and the possibility to lose more than what is initially invested. In some instances you may need to deposit additional collateral to maintain certain margin requirements. Please review our Margin Trading Risk Disclosure, Day Trading Disclosure, and Portfolio Margin Disclosure on our Account Disclosures page to understand the risks associated with trading on margin.
Zacks Trade was established in 1978 by quantitative equity expert and MIT alumni Len Zacks. Regulated by the Financial Industry Regulatory Authority (FINRA), the company attracts US traders with its competitive commissions and powerful tools that facilitate independent investment research. US customers can choose from a balanced range of financial instruments, including ETFs, mutual funds, stocks, cryptocurrencies, and options.
All these instruments are tradable via a robust downloadable platform compatible with MacOS, Microsoft Windows, and Linux. This fully customizable software is equipped with scalable charts and more than 120 technical indicators. Trading directly through charts is supported as well. Additionally, Zacks Trade provides its clients with instant access to over 20 research subscriptions from leading market analysis providers like Morningstar and Thompson Reuters.
Trading through tablets or smartphones is an option for customers who install the broker’s native applications from the App Store or Google Play. The apps are packed with useful functionalities that enable you to stay on top of the financial markets while on the go. You have access to major earnings and ratings statistics, valuable market insights, and real-time stock price changes. Prospective clients can test the broker’s services via free paper trading accounts.
New customers must transfer at least $2,500 to start their investing experience with Zacks Trade. This minimum is exorbitant, to say the least, and significantly exceeds the industry average. On the positive side, deposits are free at Zacks Trade where you can top up your live balance with familiar payment options like checks and bank wire transfers. Each customer is entitled to one free withdrawal per month, with subsequent requests incurring extra fees from $1 to $10, depending on the method used.

Trading Regulations in the US

The United States has the most developed economy on a global scale, with a gross domestic product of $25.46 trillion for 2022. The country is also home to the NASDAQ and the NYSE, the world’s largest stock exchanges in terms of market capitalization. Despite this, US traders often have a difficult time finding reliable online brokers as very few firms are authorized to legally service customers from the local market.

This shortage can be attributed to the hostile regulatory environment in the country. Financial services providers are subject to rigorous supervision and must meet extremely high minimum capital requirements to obtain operating licenses in the US. With that in mind, trading with stocks, spot currencies and commodities, futures, options, exchange-traded funds, and bonds is legal in the country. The provision of contracts for difference (CFDs) is prohibited under the US financial legislation due to the high risk these speculative instruments entail.

Forex Trading Regulations in the US

The Commodity Futures Trading Commission (CFTC) is the primary regulatory agency that monitors the commodities markets in the United States, and this includes foreign exchange transactions. The Commodity Exchange Act granted the federal agency supervisory powers over all financial transactions that involve over-the-counter foreign currency options and futures. The agency’s regulatory responsibilities broadened further after the Dodd-Frank Act passed into law in the wake of the 2008 global financial crisis.

The CFTC established the National Futures Association (NFA) in 1981 and tasked it with the registration of all companies and persons that want to conduct business with derivative instruments in the country. The self-regulatory agency observes for compliance and takes disciplinary action against registered firms and individuals that violate the law. It safeguards the interests of local investors and helps maintain the integrity of the US derivative markets. The entity additionally provides arbitration services to registered brokers and local investors, assisting them in resolving forex and futures-related disputes.

The NFA defines retail customers as all persons whose cumulative assets are valued at less than $10 million. OTC foreign exchange transactions can be offered only by registered entities, including US-based banks, financial holdings companies, futures commission merchants (FCMs), and retail foreign exchange dealers (RFEDs). These entities must receive authorization from the CFTC and the NFA before they can legally transact with customers from the US market.

NFA-registered brokers must provide customers with standardized risk disclosures that inform them about the risks associated with foreign exchange trading. Said risk disclosures must additionally include information about the percentage of profitable and unprofitable customer accounts during the respective quarter.

If a broker-dealer establishes that an individual customer lacks the necessary expertise and experience to trade forex, it must provide additional information that allows the client to adequately determine whether they should enter into forex transactions. With that said, registered broker-dealers cannot provide individual recommendations or trading advice to clients who are deemed unfit to trade forex.

The Dodd-Frank Act stipulates that forex broker-dealers must have $20 million or more in equity to receive operating licenses in the United States. These minimum capital requirements are significantly higher compared to other jurisdictions and forced many brokers to exit the US market after Dodd-Frank passed into law. As for the maximum leverage available to local forex traders, it is capped at 50:1 for major currency crosses and 20:1 for minor currency pairs.

Stocks Trading Regulations in the US

Stock trading on US soil is regulated primarily by the Securities and Exchange Commission (SEC). The agency was established shortly after the collapse of the NYSE in the late 1920s, which marked the beginning of the Great Depression. The governmental agency monitors the operations of all securities exchanges in the country, safeguards the interest of investors, and works to prevent market manipulation.

SEC strives to ensure equal opportunities for all participants in the stock market and maintains a special database called EDGAR to this end. Abbreviated from Electronic Data Gathering, Analysis, and Retrieval, EDGAR gives investors free access to invaluable financial information about all publicly traded companies in the US.

SEC also has the mandate to supervise the Financial Industry Regulatory Authority (FINRA), an independent regulatory body that oversees the operations of all securities companies authorized to conduct business in the country. FINRA is responsible for fostering market transparency, scrutinizing securities firms for compliance with the rules, and educating investors. The self-regulatory agency has the authority to take disciplinary action against violators, levy fines, and order compensation payments to qualifying investors. The independent agency collects regulatory fees from member securities firms rather than using taxpayer money.

Speaking of compensation, all stock brokers overseen by FINRA and SEC must apply for membership in the Securities Investor Protection Corporation. SIPC is similar to the Financial Services Compensation Scheme (FSCS) available to retail traders in the UK. It entitles all customers of FINRA-registered brokerages to compensation if the firms they are dealing with are forced into insolvency.

The maximum financial restitution under SIPC is capped at $500,000 per client and includes $250,000 in compensation for cash investments. Other than that, SIPC is not a regulatory body and as such, has no remit when it comes to investigating securities-related crimes or fraud.

Under the requirements of the SEC, each day trader that deals with securities such as stocks is expected to maintain a minimum equity balance of $25,000. The regulator defines the practice of day trading as opening or closing positions within the same trading day. An exception is made in cases where day trades constitute 6% or less of the overall trading transactions you conduct within this timeframe. Investors who fail to maintain the minimum required equity have their day trading activities suspended.

The maximum leverage available to day traders based in the US is capped at 4:1. For example, a day trader can open cumulative positions to the amount of $200,000 with a live balance of $50,000. Clients who maintain open positions overnight are restricted to maximum leverage of 2:1.

CFD Trading Regulations in the US

Contracts for difference (CFDs) are a high-risk speculative instrument that enables traders to potentially profit solely from price fluctuations without purchasing any underlying assets. These derivatives involve leverage that allows you to gain greater exposure to the markets without actually putting up the full value of your open positions, at least not upfront. In essence, CFD traders borrow money from their brokers to inflate the size of their trades. They must return the borrowed capital if they exit their leveraged positions at a loss.

As you can probably tell, CFD trading involves a significant amount of risk, especially for inexperienced retail investors. CFDs are legal in many jurisdictions but the US is not one of them. Trading with this type of derivative is prohibited by the SEC and the CFTC. The primary reason behind the ban is that CFDs are traded over the counter, which means they do not go through authorized exchanges like the NYSE, for example.

This makes them less transparent and more difficult to regulate, not to mention they can cause unversed traders to quickly slip into debt when huge market swings occur. The interesting thing, though, is that the prohibition does not extend to cover even riskier derivatives like the so-called binary options. Also known as ‘yes-or-no propositions’ or ‘cash-or-nothing options’, binary options return fixed payouts if a trader manages to predict whether the value of a given asset will climb over or drop below a predetermined amount.

Binary options expire automatically and there is no further decision-making on behalf of the trader. Binary options trading involves an element of gambling and is illegal in many jurisdictions, including the UK, Belgium, Australia, Canada, and Israel. SEC advises against trading binary options at online platforms that lack official authorization from US regulators.

At the time of publication, only three entities are authorized to provide binary options on the local market. These include the Chicago Mercantile Exchange, the Cantor Futures Exchange, and the North American Derivatives Exchange. All other entities that offer this high-risk derivative to local traders are violating US law.

US Trading Regulations FAQ

1. What are regulatory fees?

2. Are US traders taxed on their profits?

3. Is spread betting legal in the US?

4. Do US online brokers permit hedging?

5. Are US traders entitled to compensation if their broker declares insolvency?

Funding and Withdrawing from US Trading Accounts

The range of available payment methods generally depends on which US broker you sign up with. The most common options typically include cards, wire transfers, and checks, although some trading sites also work with globally available digital wallets like PayPal. Each payment method has its advantages and disadvantages when it comes to costs, transaction limits, and processing timeframes. We cover all these aspects in more detail below.

Depositing to US Trading Accounts

US traders face a more limited choice of options when it comes to funding their live accounts, especially when compared to other jurisdictions like the UK. Most brokers operating in the country facilitate card deposits, with Visa, Maestro, American Express, and Mastercard being the most broadly supported card brands. Card deposits are typically instant and will cost you nothing but the minimum transferable amounts vary based on your broker. Some brokers like Fidelity have no minimum deposit requirements for card payments, while others impose minimums ranging from $10 to $250.

ACH (Automated Clearing House) and wire transfers are the most commonly available options for depositing traders from the US. While both methods allow users to move funds between banks, ACH transfers are slower because they must pass through an interbank network for verification before the payment goes through. By comparison, wire transfers are faster since the funds go directly from one bank account to another without passing through an intermediary network for verification. Domestic wire transfers are usually completed within the same business day but are associated with higher costs that are bank-specific.

Some US-friendly brokers like Fidelity and eToro accept deposits with digital wallets like PayPal. E-wallets are a great choice for traders who wish to move funds to their live balance without sharing any personal and banking information like card or bank account numbers, for instance. They must provide only their PayPal details to initiate a deposit. One drawback associated with PayPal is that it requires you to register upfront and then top up your e-wallet balance via a bank transfer or a card. Nonetheless, the trouble is well worth it as PayPal allows for secure and instant deposits without additional transaction costs.

Most US brokers accept electronic checks but mailing a check is also possible in some cases. The limits and processing fees are determined by your bank. Checks sent by mail are less time-efficient as they normally require 3 business days, sometimes even more. Additionally, you must notify your broker in advance when mailing your check. Deposits with electronic checks are faster – they normally go through within the same business day.

Common Deposit Methods Offered by US Brokers
Type of Method	Usual Limits per Transaction	Processing Timeframes	Processing Fees
Cards	$0 to $250	Instant	Free
ACH Transfers	$10 to $100	Up to 4 business days	Free
Wire Transfers	$10 to $500	1 business day for domestic transfers	Depends on your bank
E-Wallets	$0 to $10	Instant	Free
Checks	$0 to $10	1 to 3 business days	Generally free

Withdrawing from US Trading Accounts

By a rule of thumb, US brokers tend to return their clients’ withdrawals to the originating source of funding. Traders who wish to cash out their funds to a different payment method than the one they used for depositing are subjected to additional verification procedures. The withdrawal methods generally overlap with those available for deposits, paper checks being the only exception as they are rarely supported for cashing out.

Withdrawals to cards are possible in most cases and the minimum requested amount usually starts at $10. However, some brokers like IG do not impose minimum requirements on card withdrawals. Another benefit of using cards for this purpose results from the absence of extra processing fees. Most US-friendly brokers do not charge additionally when traders withdraw back to their cards.

US traders can also ask to have their funds returned via ACH or wire transfers, which usually take at least a couple of business days. ACH and wire transfer withdrawals rarity incur additional fees on the brokers’ side but the banks processing the payments may charge you extra. The minimum you can request via wire transfer is often higher and starts at $100, although the exact limits are broker-specific.

Some US-friendly trading sites like eToro and Fidelity facilitate withdrawals with PayPal. We recommend you opt for this e-wallet if your chosen broker supports it. PayPal withdrawals tend to take the least amount of time as the funds rarely reach you within more than a couple of days. Withdrawals with PayPal have lower minimum limits and are not associated with additional processing fees. Whichever method you choose, make sure it is registered in your own name, or else you will not pass the verification process.

Common Withdrawal Methods Offered by US Brokers
Type of Method	Usual Limits per Transaction	Processing Timeframes	Processing Fees
Cards	$10 (no minimum at some US brokers)	2 to 5 business days	Free
ACH Transfers	$100.00	Up to 5 business days	Bank-specific
Wire Transfers	$100.00	2 to 5 business days	Bank-specific
E-Wallets	$10.00	1 to 2 business days	Free

US Trading Platforms

After testing all major brokers that operate legally on the US market, we established that most of them rely on proprietary software built from the ground up to satisfy the unique requirements of their customers. Each proprietary platform comes with bespoke features and specifications, so testing the software via a free paper trading account is highly recommended.

Most brokers facilitate direct in-browser trading via web platforms, allowing customers to access their accounts and manage their positions from any desktop or mobile device they choose. Others, like Zacks Trade, offer downloadable in-house software compatible with all major desktop operating systems like Microsoft Windows, MacOS, and Linux.

Third-party platforms are sometimes offered in conjunction with the proprietary software, with MetaTrader 4, ProRealTime, and TradingView ranking as the most commonly available options. Stay with us as we delve deeper into the specifics of each of the three popular third-party platforms.

ProRealTime

Some CFTC-authorized brokers, like IG, give US clients the option to use the popular third-party platform ProRealTime. This software is geared toward the needs of chartists and day traders looking to perform advanced technical analysis. ProRealTime accommodates them with powerful tools designed to make their decision-making process easier. Users can take advantage of more than 100 technical indicators that allow skilled analysts to adequately evaluate everything from volatility to potential price fluctuations.

Automatic trading is also possible with ProRealTime. Traders can create custom algorithms and use them to execute orders around the clock. You can also backtest new trading strategies before you implement them in the real markets. Additionally, users have access to real-time economic news and comprehensive trading reports. Trading from charts is supported as well.

Another advantage of using ProRealTime is that it enables you to place orders according to trend lines rather than relying on price movements only. The platform impresses with an efficient and intuitive interface that makes trading a breeze for both beginner and experienced traders. Given all this, it is unsurprising that the platform’s developers report over 87% of all ProRealTime users improve their overall trading performance.

MetaTrader 4

Designed by MetaQuotes, MetaTrader 4 (MT4) is the world’s leading platform for retail foreign exchange trading. The platform is free to download and use. Trading via the browser-based web version is also an option. Mobile apps compatible with Android 5.0 and iOS 11.0 are available on Google Play and the App Store as well. More than 750 brokerage firms rely on this platform at the time of publication, including US-friendly brokers like IG.

MT4 is a viable option for beginner and advanced traders alike as it pairs user-friendliness with useful functionalities that enable you to take full control of your trading experience. The platform is renowned for facilitating exhaustive technical analysis. Traders have access to 30 technical indicators that enable them to identify market trends and make more accurate predictions about future price movements.

The platform is also suitable for chartists as it allows them to open up to 99 charts simultaneously, according to MetaQuotes. As many as 31 graphical objects are available and users have the ability to execute trades with a single click of their mouse button. The supported timeframes start from one minute and go all the way up to a month. MetaQuotes recently updated the MT4 terminal to include an economic calendar to the benefit of users looking to perform adequate fundamental analysis.

TradingView

TradingView is regarded as one of the best charting platforms out there. It offers a comprehensive range of functionalities, including over 15 chart types, customizable timeframes, and more than 90 advanced drawing tools. It boasts an exhaustive database for technical analysis, with over a hundred prebuilt technical indicators and thousands of public indicators. Creating indicators that correspond to your individual needs is a breeze thanks to TradingView’s elegantly minimalist programming language, Pine Script.

Traders who opt for this platform will never miss out on the opportunity to profit from favorable market conditions as TradingView enables them to create configurable alerts based on indicators, prices, and strategies. Various prebuilt alert types are available, including crossing, entering and exit channels, greater-than, and greater-less alerts. Additionally, users can take advantage of special alerts for trend lines, arrows, info lines, and rays.

The platform doubles as a community whose members can exchange advice and discuss various trading strategies. It enables you to hone your skills with paper trading before you are confident enough to join the real market action with a live account at an affiliated broker. Speaking of which, some of the most prominent brokerages in the US work with TradingView, including Forex.com, Ally Invest, Oanda, and Alpaca.

Best United States Trading Platforms