Are forex brokers legal in the US?

Yes, forex brokers are legal in the US but only if registered with the CFTC as Futures Commission Merchants and NFA members. Strict rules cap leverage at 1:50, ban hedging, require FIFO order filling, and prohibit bonuses. This protects retail traders but limits flexibility compared to offshore. Popular legal options include Oanda, Forex.com, and Interactive Brokers. Unregistered foreign brokers face massive fines for serving Americans. Always verify NFA registration before depositing.