Benefits of being classified as a Professional
Protections you lose being classified as a Professional
How To Become A Professional Client
If you would like to be classified as a professional client to avoid these restriction, you must fulfil TWO of the following criteria set by the FCA:
Information You May Need To Provide
In addition to completing our professional client application form, if we cannot confirm you meet the above criteria from your trading activity and account information, you may have to provide the following documents as evidence:
|FCA Professional Client Criteria||Supporting Documentation|
|1. Traded in significant size an average of 10 times in each of the last 4 quarters on CFDs or forex||Trade statement from another broker / financial institution|
|2. Have an investment portfolio of + 500,000 EUR (Including cash savings / financial instruments||Bank, broker or investment portfolio statement or a letter from a notary confirming net worth|
|3. Worked for at least one year in the financial sector, gaining knowledge of CFD / forex trading||LinkedIn Screenshot, FCA register screenshot, payslip or letter from employer|
If you would like to take advantage of becoming a professional client, please contact your representative or our support team at firstname.lastname@example.org or download our Professional Client application form.
Please complete the application form and email along with supporting documents to email@example.com
New ESMA Regulations
The European Securities and Markets Authority (ESMA) has introduced new measures on Contracts for Differences (CFDs) that will affect all retail clients from 29th July 2018.
These measures include:
|Asset Class||Current Leverage|
(remains for professional clients)
|New leverage from 29/07/2018|
(affecting retail clients only)
|Major FX Pairs||200:1||30:1|
|Minor FX Pairs||200:1||20:1|
How does this affect your trading account?
Due to lower leverage limits, you will now need to deposit more funds into your account to open a position of the same size. Example shown below:
|Leverage||Instrument||Size||Price||Margin Required (USD)|
|Current Leverage 200:1||EURUSD||1 Lot (100,000 Units)||1.1824||591.20|
|Limited Leverage 30:1||EURUSD||1 Lot (100,000 Units)||1.1824||3,941.33|
Professional Clients will not be affected by these changes
The new restrictions will only apply to retail clients, not professional clients.
Why are CFD Leverages being restricted to retail clients?
Trading CFD products carries a high level of risk and therefore higher leverage levels are not suitable for all traders.
How will this affect my current open positions?
Any positions you have open in the below instruments before 29th July 2018 will not be affected by the new leverage limits.
Any positions you open in the above instruments after 29th July 2018 will be affected by the new leverage limits. For all other instruments, the leverage limits will affect all positions that remain open on 29th July 2018. We advise you make sure your account is adequately funded if you wish to continue trading.
What if I do not meet the criteria?
If you do not meet the criteria to be classified as a professional client, you can still trade more than 290 instruments as a retail client, however your account will have the new leverage limits applied and a margin close out level of 50%.
What can be included in my investment portfolio?
Financial instruments including shares, derivatives, debt instruments and cash deposits. You cannot include property portfolios or notional values of leveraged instruments.
How will I know if my application has been approved or rejected?
We will contact you by email confirming that you will be classified as a professional client or that you will remain as a retail client. Your log in details and account number will remain the same.