What is a Commodity Trading Advisor?

Commodity trading consultants are an industry that provides guidance and assistance for individual investors. It is subject to double supervision by the CFTC and NFA, and is a fund management method in the futures industry.

Commodity Trading Advisor

U.S. government at

So-called

From the experience of the US market,

Categories require the following activities to be exempt from registration with the CFTC

(1) Futures Commission Merchants (FCM) Generally speaking, futures commission dealers can perform the following activities for individuals or organizations:

1. Seeking or accepting orders (orders) to trade commodity futures or options contracts;

2. As payment for execution of instructions, accept client money or other assets. Request for registration

(2) Introducing Broker (IB) An Introducing Broker may seek or accept customer instructions (orders) for individuals or organizations,

Trade commodity futures or options contracts,

No client money or other assets are collected. Registration is required unless it is one of the following:

a. Registered as a broker agent in parallel with his duties;

b. Registered as a futures commission merchant;

c. Registered as a commodity joint venture fund manager (CPO) and only engage in commodity joint venture fund business;

d. Registered as a Commodity Trading Advisor (CTA) and authorized to manage the account alone or not receive a commission for each transaction.

(3) Commodity joint venture fund manager (CPO) A commodity joint venture fund manager is an individual or organization seeking to fund or manage a commodity joint venture fund, that is, some people concentrate their funds in a certain enterprise for futures contracts or Trading of commodity options. Registration is generally required unless:

The total amount of capital raised shall not exceed USD 100,000 and the number of partners in the joint venture fund shall not exceed 15.

(4) Commodity Trading Consultant (CTA) A commodity trading consultant refers to a specific person who, for the purpose of charging or profit, directly or indirectly provides advice to others on whether to buy or sell futures or commodity option contracts. Indirect recommendations include the implementation of transaction monitoring on the client's account or the publication of recommendations through written publications or other newspapers. Registration will be required unless it is one of the following:

a. In the past few months, provide advice to 15 or less people, and do not insist that you are a commodity trading consultant.

b. Your business or specialty falls within the scope of the Commodity Futures Trading Commission Law, or you have registered in another capacity, and the proposed transaction does not belong to your main business or specialty;

c. Your suggestions are published through publications or other newspapers. The suggestions are limited to those futures contracts and commodity option contracts listed on foreign exchanges.

(5) Broker Agent (AP) A broker agent is a representative of futures commission dealers, middlemen, commodity trading consultants, or commodity joint venture fund managers, seeking orders, clients or client funds (or supervising client orders and funds The right person). In fact, it can be any salesperson or someone who has supervisory authority over the salesperson who runs the above activities. Certain dual identities are not allowed (such as pulling business for two futures commission merchants, two intermediaries, or one futures commission merchant and one intermediary). Not only those who directly engage in business need to be registered. Everyone (whoever it is) must also be registered. Registration is generally required unless it is one of the following:

a, you have registered as a futures commission merchant, middleman or floor broker;

b. You have registered as a commodity joint venture fund manager if you want to associate with another commodity joint venture fund manager;

C. You have registered as a commodity trading advisor if you want to associate with another commodity trading advisor;

d. If you are registered with the National Association of Securities Dealers and perform only the role of a broker agent when cooperating with a commodity joint venture fund manager.

(6) Floor broker (FB) A floor broker is an individual who executes any type of commodity futures contract or option contract instruction for any other person. Members of the exchange who only trade for their own accounts are not required to register