Regulated Gold Broker Guide
Trading XAUUSD Choose a XAUUSD Trading Broker
Factors to look for & consider when selecting a xauusd trading broker
Regulation is one of the guideline of choosing a broker. As a new trader your first challenge is to choose the right one. The best ones are those that are regulated. This should be the type of firm that you should choose: a regulated xauusd trading broker.
It is not as easy as it sounds to choose a good one and the whole searching process might leave you confused due to the huge competition between them, as they all offer different trading softwares, trading services, order execution and capabilities. Best criteria in selecting is to find a regulated one.
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 gold broker asks for Identification documents and proof of residence from traders when they are registering, so when as a trader you are registering and you are asked for these documents when opening an account, you'll know why they are being asked for.
Some of These Gold Trading Broker Regulatory Authorities are Listed Below:
USA
The NFA regulates all us based financial firms, the official site for NFA is https://www.nfa.futures.org/ where the list of USA gold 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 2 NFA & CFTC introduced these rules many international gold brokers closed down their America based branches, Those that did not have US branches were forced to close & transfer the accounts of American citizens because CFTC threatened to sue any gold trading based firms that isn't from USA if they open trading accounts for American Citizens. This is why most xauusd brokers will not accept America Clients.
USA
CFTC regulates all US based financial firms, CFTC is Similar to NFA
Cyprus
The CySEC regulates all Cyprus financial firms, the official website is https://www.cysec.gov.cy where you can search for the registration & licenses number of those Gold brokers licensed by this regulator. The CySEC regulates brokers operating within the European Union Jurisdiction of Cyprus Member Country.
UK
NOW FSA has changed name FCA, & regulation details can bound from either FSA or FCA.
The FSA regulates all financial firms in UK, the official site for FSA is https://www.fsa.gov.uk/ this website contains list of gold brokers licensed in the UK. FSA also registers other international firms & gold trading based firms from other countries that have an operating office within UK. To check whether the financial institution you're trading with is regulated in UK just navigate to FSA Register.
Germany
BaFIN regulates all German financial institutions, the website for BaFin is https://www.bafin.de & BaFin is the German Federal Supervisory Authority for Investment brokers & institutions operating within German.
Australia
The ASIC regulates all firms in Australia
Japan
Regulates all Japan based firms
Switzerland
The FDF regulates all Swiss based firms
Canada
The CIPF regulates all Canadian firms
European Union Brokers
MIFID is more of a Regulation Standard for European Union Brokers, than a Regulation Authority.
Mauritius
The IFSC regulates all Mauritius firms
Above Regulatory authorities are the 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 that are most popular regulators.
About USA Based XAUUSD Trading Broker Regulations & USA Regulatory Authorities
NB: One thing you should know about regulators is that you might not want to chose NFA or CFTC USA Regulators, who have these very strict rules:
- Max Gold Trading Leverage 50:1
- First In First Out FIFO Trading (open trades in 123 order, must close then in 123 trading order, not 321, not 312, not 213 order)
- No Stop Loss Gold Order Setting
It is for the above rule that most traders will not open a trading account with America brokers, most traders who traded with USA gold brokers closed their accounts and transferred them overseas with the introduction of these rules, his is around the year 2010.
In addition these regulators, will take to court any gold trading financial firm which opens an account for USA citizens, this is why no gold broker will open a trading account for an American, Only those in USA can open an Account for An American Citizen. The only xauusd brokers ones accepting clients from USA are only those brokers that are based in the USA.
