Regulated Energies Trading Broker Guide
Energies Trading Regulated Energies Trading Brokers Regulation is one of the guideline of choosing a Trusted Energies Trading Brokers to trade energies with. As a new energies trader your first challenge is to choose the right energies broker. The best regulated energies brokers are those that are regulated. This should be the type of energies broker that you should choose: a Regulated energies broker - Trusted Energies Trading Broker.
It is not as easy as it sounds to get a trusted energies broker & the whole searching process of finding Energies Trading Regulated Energies Trading Brokers might leave you confused due to the huge competition among them, as they all offer different energies platforms, services, execution and capabilities. The best criteria in choosing a regulated and trusted energies broker is to find a regulated broker.
Regulated brokers have to submit all their transactions every year to the regulation authority for audit. This means that these companies cannot participate in any illegal activity such as money laundering. This is why your energies broker asks for Identification documents and proof of residence from traders when they are registering, so when as a trader you are signing up and are asked for these documents when opening an account, you will know why they are being asked for.
Some of These Energies Trading Broker Regulatory Authorities are Listed Below:
National Futures Association ( NFA) - USA
The NFA regulates all us based financial firms, official site for NFA is https://www.nfa.futures.org/ where the list of USA energies brokers are listed. NFA doesn't issue license to other international ones, unlike other regulatory authorities, NFA will only license US based firms. NFA just like CFTC have very overbearing regulation rules that are not favorable to the traders themselves. After these two NFA & CFTC introduced these rules many international energies brokers closed down their US based branches, Those that did not have America branches were forced to close and transfer the accounts of USA citizens because CFTC threatened to sue any energies based firms that is not from America if they open accounts for USA Citizens. This is why most energies trading brokers will not accept USA Clients.
Energy Futures Trading Commission (CFTC) - USA
The CFTC regulates all America based financial firms, CFTC is Similar to NFA
Cyprus Securities and Exchange Commission (CySEC ) - Cyprus
The CySEC regulates all Cyprus financial firms, the official website is https://www.cysec.gov.cy where you can search for the registration and licenses number of those Energies brokers licensed by this regulator. The CySEC regulates brokers operating within the European Union Jurisdiction of Cyprus Member Country.
FCA - Financial Conduct Authority as of 2013 - UK
NOW FSA has changed name FCA, and regulation details can bound from either FSA or FCA.
The FSA regulates all financial firms in UK, official site for FSA is https://www.fsa.gov.uk/ this website contains list of energies companies licensed in the UK. FSA also registers other international firms and energies based firms from other countries that have an operating office within the UK. To check whether the financial institution you are trading with is regulated in UK just go to the FSA Register.
German Federal Labor Market Authority (BaFin ) - Germany
The BaFIN regulates all German financial institutions, the site for BaFin is https://www.bafin.de & BaFin is the Federal Supervisory Authority in German for Investment firms & institutions operating within German.
Australian Securities and Investments Commission ( ASIC) - Australia
The ASIC regulates all firms in Australia
The Financial Futures Association of Japan ( FFAJ) - Japan
Regulates all Japan based firms
Swiss Federal Department of Finance (FDF ) - Switzerland
The FDF regulates all Swiss based firms
Canadian Investor Protection Fund ( CIPF) - Canada
The CIPF regulates all Canadian firms
MiFID, Markets in Financial Instruments Directive
MIFID is more of a Regulation Standard for European Union Firms, than a Regulation Authority.
International Financial Services Centre ( IFSC) - Mauritius
The IFSC regulates all Mauritius firms
The above Regulatory authorities are most trusted and the most famous regulatory authorities, it is best to open an account with a regulated broker that is licensed by one these regulatory authorities which are the most popular regulators.
About USA Based Energies Trading Broker Regulations & America Regulatory Authorities
NOTE: One thing you should know about regulators is that you might not want to chose NFA or CFTC American Regulators, who have these very strict rules:
- Max Energies Trading Leverage 50:1
- First In First Out FIFO Trading (open trades in 123 trading order, must close then in 123 order, not 321, not 312, not 213 trading order)
- No Stop Loss Energies Trading Order Setting
It is for the above rule that most traders will not open a trading account with USA brokers, most traders who traded with America energies trading brokers closed their trading accounts & transferred them overseas with introduction of this rules, this is around year 2010.
In addition these regulators, will take to court any energies financial firm which opens an account for America citizens, this is why no energies broker will open an account for an American, Only those energies brokers in USA can open a energies Trading Account For An American Citizen. The only brokers accepting US clients are only those brokers based in USA.
