Forex.com or TD Ameritrade: Choosing the Best US based Forex Company

If you would make a search on Google about the best US Forex company to trade with, you’ll get different results from different sources. Opinions on the Internet can be very subjective. What’s best for some people may not be the same for others. 

This makes the process of Forex broker selection a little tricky. Because of a very long list of Forex brokers accepting US clients 2020, searching for the best one may give aspiring traders a headache. There’s just a lot to consider (security of funds, regulation, trading platforms, transactions costs etc.). 

Luckily, there’s a bunch of US based Forex broker review websites dedicated to helping traders in making a decision. These websites do the research and dig deeper to provide the latest comprehensive reviews about different Forex companies.

If you’re reading this article, you’re in for a treat because we’ll be comparing two of the most popular Forex brokers in the business today: Forex.com vs TD Ameritrade

Security

Anyone looking for a Forex broker in north america, and especially in the US to do business with should give security the highest priority. To feel safe, you must only deal with heavily-regulated Forex companies, such as Forex.com and TD Ameritrade. 

TD Ameritrade is a U.S. broker licensed by the National Futures Association (NFA) to provide Forex trading services. In our previous blogs, we’ve mentioned that any Forex company that wants to enter the U.S. market should meet the NFA’s locked capital requirement of at least $20 million. Many Forex brokers today just can’t afford the agency’s license fee. TD Ameritrade, having been able to obtain a license from the NFA, just shows that it’s financially stable. 

Meanwhile, Forex.com is regulated by the Financial Conduct Authority in the UK. The FCA is popular in the Forex world when it comes to implementing stricter rules, as well as penalizing Forex companies that fail to comply with its guidelines. Moreover, Forex.com is owned by Gain Capital, which holds different licenses in different countries including the U.S., Japan, Australia, and Hong Kong. This only shows Forex.com’s commitment in providing safe, and high quality services overall. 

Trading Platforms

Both Forex.com and TD Ameritrade provide their clients innovative trading platforms. TD Ameritrade is known for its powerful platform thinkorswim, which lets Forex traders trade not just currencies, but also stocks, options, and futures all from one account. This broker, through the platform, also offers clients free access to comprehensive educational materials, advanced analytical tools, among others. Aside from thinkorswim, traders also have the option to trade through TD Ameritrade’s mobile and web platforms. 

Forex.com, on the other hand, offers clients both the MT4 and MT5 trading platforms. Also, just like TD Ameritrade, Forex.com offers mobile and web trading. 

When it comes to trading platforms offered, USA based company Forex.com may be at advantage as the broker has the MT4 and MT5 platforms, which are known for their user-friendly interface and powerful built-in features like analytical tools and indicators. Don’t get us wrong; AD Ameritrade’s thinkorswim is a great platform, however, because it’s more advanced, it may be hard for inexperienced traders to navigate through it. 

Trading Conditions

• Minimum deposit – In this department, Forex broker TD Ameritrade requires way higher minimum deposit than Forex.com. It requires a $2,000 minimum deposit compared to Forex.com’s $50. The latter is favorable for inexperienced or small-time Forex traders, who are often unwilling to shell out a big amount of money. 
• Leverage – Both brokers provide clients with a maximum leverage of 1:50. This leverage complies to the guidelines of the NFA. 
• Spread – The average spread for the EUR/USD currency pair at TD Ameritrade is 1.065 pips versus Forex.com’s 1 pips. 

Which is the Better Forex Broker?

Forex brokers TD Ameritrade and Forex.com are both impressive in their advanced Forex trading platforms. However, newbies may find Forex.com’s MT4 and MT5 trading platforms much easier to use because of its clean and easy-to-use interface. 

In terms of regulation, both US brokers are heavily-regulated, ensuring clients’ fund safety. But considering that Forex.com and its mother company have strong regulations in 7 countries, this Forex broker may be the better choice. Lastly, Forex.com is the more affordable Forex broker as it requires only $50 minimum deposit to get started.