Forex trading is a vast market that involves buying and selling of currencies. It is a decentralized market that operates 24/7, and it is the largest financial market in the world. In the United States, forex trading is regulated by the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). Forex brokers play a crucial role in forex trading, and they can be classified as either market makers or non-market makers. In this article, we will discuss which US forex brokers are market makers.
What is a market maker?
A market maker is a forex broker that provides liquidity to the forex market. They create a market for their clients by both buying and selling currencies at any time. Market makers make money from the spread, which is the difference between the bid and ask price of a currency pair. They offer fixed spreads, which means that the spread does not change even during periods of high volatility. Market makers are also known as dealing desk brokers, and they play a crucial role in providing liquidity to the forex market.
Which US forex brokers are market makers?
1. OANDA
OANDA is a market maker forex broker that was founded in 1996. It offers both forex and CFD trading, and it is regulated by the CFTC and the NFA. OANDA offers fixed spreads, and it has a minimum deposit of $1. It also offers a wide range of trading platforms, including MetaTrader 4, web-based trading platform, and mobile trading apps.
2. Forex.com
Forex.com is another market maker forex broker that is regulated by the CFTC and the NFA. It offers both forex and CFD trading, and it has a minimum deposit of $50. Forex.com offers fixed spreads, and it has a wide range of trading platforms, including MetaTrader 4, web-based trading platform, and mobile trading apps.
3. TD Ameritrade
TD Ameritrade is a market maker forex broker that is regulated by the NFA. It offers forex trading through its thinkorswim platform, and it has a minimum deposit of $0. TD Ameritrade offers fixed spreads, and it has a wide range of trading platforms, including thinkorswim desktop platform, web-based trading platform, and mobile trading apps.
4. Interactive Brokers
Interactive Brokers is a market maker forex broker that is regulated by the NFA. It offers forex trading through its Trader Workstation (TWS) platform, and it has a minimum deposit of $0. Interactive Brokers offers fixed spreads, and it has a wide range of trading platforms, including TWS desktop platform, web-based trading platform, and mobile trading apps.
5. Forex Capital Markets (FXCM)
FXCM is a market maker forex broker that is regulated by the NFA. It offers forex trading through its Trading Station platform, and it has a minimum deposit of $50. FXCM offers fixed spreads, and it has a wide range of trading platforms, including Trading Station desktop platform, web-based trading platform, and mobile trading apps.
Conclusion
Market maker forex brokers play a crucial role in providing liquidity to the forex market. They offer fixed spreads, which means that the spread does not change even during periods of high volatility. The US forex brokers that we have discussed in this article are all market makers, and they are regulated by the NFA and the CFTC. When choosing a market maker forex broker, it is essential to consider the trading platforms, minimum deposit, and the range of tradable instruments.
