Best Forex brokers that offer futures trading in the US
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Futures trading in the United States has a long history. The Chicago Board of Trade (CBOT) was established in 1848, which played an important role in developing the futures market we know today. Futures contracts are essential in risk management for many businesses in the USA, as these contracts help hedge against price volatility. Retail traders try to exploit the volatile markets by participating in futures contracts trading.
There are various brokers that offer Forex and CFDs globally but only futures contracts in the United States. Forex, or foreign exchange (FX), involves buying and selling currencies on the FX market with the goal of making money. Market speculators use leverage to make profit from small changes in currency prices. Forex market is decentralized and includes multiple types of participants such as banks, financial institutions, global corporations, governments, and retail traders.
As of futures trading, it involves the buying and selling of futures contracts that obligate the holder to purchase or sell an asset at a predetermined price and predetermined future price. Futures contracts can include large asset classes such as futures contracts on crypto, agriculture, metals, Forex, interest rates, energy, equity index, and more.
Multiple international Forex and CFD (Contracts for Difference) brokers operate in the USA and offer their clients Futures contracts for trading. In this top list, we’ll delve into the trading conditions, regulatory requirements, and more to aid our readers find the best brokers to trade futures.
Futures contracts trading in the United States is overseen by several agencies. The regulators’ goal is to protect investors, ensure fair and transparent financial markets, and preserve the overall integrity of the financial system. The main regulators in this are are:
- The Commodity Exchange Act (CEA)
- The Commodity Futures Trading Commission (CFTC)
- The National Futures Association (NFA)
In addition, it should be mentioned that the futures contracts are traded on organized futures exchanges, and these exchanges have their own set of rules and regulations approved by the CFTC.
Top Forex Brokers for Futures Trading in the US
Now let’s take a look at some of the top Forex brokers that offer futures in the USA. When looking for a broker, first traders need to make sure that the broker can be trusted. There are multiple ways to tell if a broker is decent. Good brokers have a great reputation and a large customer base. In addition, trustworthy brokers are well regulated by reputable regulatory bodies. Secondly, it’s important to look at prices and available tradable instruments. Commissions and spreads can make or break a trader. Let’s take a look at some of the best brokers in the industry.
Plus500 is an international Forex and CFD broker that offers futures contracts for trading to the residents of the United States. Since its establishment in 2008, Plus500 has dedicated significant efforts to continually enhance its services, steadfastly committed to delivering an unparalleled trading experience to its users. Plus500 offers approximately 2800 tradable instruments across the globe to its clients from over 50 countries. The broker has more than 25 million customers worldwide and enjoys a good reputation among traders. Under500 brandname various brokers are operating globally. What sets this company apart from its competitors is that Plus500 is regulated strictly and is considered to be highly trustworthy. The regulators that have licensed Plus500 include:
- Cyprus Securities and Exchange Commission (CySEC): Plus500CY Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission with the license No. 250/14
- Australian Securities & Investments Commission (ASIC): Plus500AU Pty Ltd is regulated by the AFSL #417727 issued by ASIC
- Financial Markets Authority in New Zealand (FMA): Plus500AU Pty Ltd is regulated by the FMA with FSP No. 486026
- Financial Sector Conduct Authority in South Africa (FSCA): Plus500AU Pty Ltd holds A#47546 issued by the FSCA
- The Monetary Authority of Singapore (MAS) for dealing in capital markets products: Plus500SG Pte Ltd holds MAS License No. CMS100648
- The Seychelles Financial Services Authority (FSA): Plus500SEY Ltd is authorized and regulated by the Seychelles Financial Services Authority with the Licence No. SD039
Plus500 offers low trading fees on its vast amounts of futures contracts. Traders can access futures on following assets: crypto, agriculture, metals, currency pairs, interest rates, energy, and equity index.
There are no inactivity fees, 0 platform and data fees, no deposit and withdrawal charges. However, there’s a liquidation fee per futures contract of 10 USD. Standard & E-Mini contract commission is $0.89, and Micro contract commission is $0.49.
Plus500 broker provides 24/7 live customer support to its clients which is super convenient. The customer support agents are highly professional and very friendly. Traders can contact the support straight from the broker’s main page. In addition, it’s possible to give the broker a call or send them an email. In addition, the broker is active on social media platforms such as Facebook, Instagram, and X. Overall, Plus500 is an amazing broker for trading futures in the USA.
Interactive Brokers or also known as IBKR is one of the best American multi-asset brokers. The company provides financial services in 33 countries. There are 2.43 million active client accounts at Interactive Brokers. The company is well regulated in the USA, and worldwide. The regulatory bodies that oversee IBKR include:
- Commodity Futures Trading Commission, (CFTC) and National Futures Association, (NFA) of the United States
- Monetary Authority of Singapore, (MAS)
- Central Bank of Ireland, (CBI)
- Investment Industry Regulatory Organization, (IIROC) of Canada
- Central Bank of Hungary, (CBH)
- Financial Conduct Authority, (FCA) of the UK
- Australian Securities and Investments Commission, (ASIC)
- Hong Kong Securities and Futures Commission, (SFS)
- Commission de Surveillance du Secteur Financier, (CSSF) of Luxembourg
There’s no minimum initial deposit required to open a live trading account with this broker and no inactivity fees. There are thousands of tradable instruments available via the IBKR Trader Workstation platform. The trading platform is modern looking and includes all the necessary tools and features that are required to flawlessly conduct technical analysis and place an order.
Oanda a Forex and CFD broker with over 25 years of experience. The broker offers various asset classes for trading, including indices, metals, shares, commodities, and cryptocurrencies. Some of the main advantages of picking this broker is the variety of account types, attractive welcome bonuses, and reasonable trading fees.
Oanda’s commitment to regulatory compliance and a solid reputation among its customers contributes to the broker’s trustworthiness. The regulators that oversee Oanda includes:
- U.S. Commodity Futures Trading Commission (CFTC).
- Investment Industry Regulatory Organization of Canada (IIROC).
- Financial Conduct Authority(FCA).
- Monetary Authority of Singapore (MAS).
- Australian Securities and Investments Commission (ASIC).
OANDA Corporation is a registered Futures Commission Merchant and Retail Foreign Exchange Dealer with the Commodity Futures Trading Commission and is a member of the National Futures Association. No: 0325821.
The broker uses MetaTrader 4 (MT4) as the main trading platform. In addition, Oanda’s web trading and mobile applications are also available. However, as a downside, it should be mentioned that the MT4 is not designed for trading various asset classes. And the platform is also offered by most competitors.
IG group was established in 1974. Today the financial broker serves more that 313,000 clients worldwide by providing access to over 17,000 markets.
IG’s expansive offerings include Forex, stocks, cryptos, commodities and more. In addition, there are futures contracts on indices, commodities, and bonds. The broker gives traders the opportunity to trade futures as CFDs. This means that traders can speculate on the underlying market price without entering the futures contracts. One clear benefit of trading futures as CFDs is that the use of leverage is allowed, and there are no commissions. Main available platform for trading futures as CFDs is MetaTrader 4. In addition, mobile and web trading terminals are also available.
IG is a well regulated group of brokers. In the US the company is managed by IG US LLC (IG US). IG US is a member of the National Futures Association (NFA ID 0509630). In addition, IG is also authorized and regulated by:
- Australian Securities & Investment Commission (ASIC);
- Japanese Financial Services Authority (FSA);
- Monetary Authority of Singapore (MAS),
- Swiss Financial Market Supervisory Authority (FINMA);
- Financial Conduct Authority in the UK (FCA);
- Commodity Futures Trading Commission in the USA (CFTC).
Trading fees are average with this broker. There are no deposit and withdrawal fees, but traders are charged with $18 inactivity fees.
To sum it all up, Futures trading involves buying and selling Futures contracts obligating holders to transact assets at predetermined prices in the future. These contracts cover diverse asset classes. Several international Forex brokers offer futures trading in the US. Some of the most notable names are Plus500, Interactive Brokers, IG, and Oanda. Plus500 in particular, offers dedicated futures trading services in the USA.