Professional Client Application

  • What are the benefits for Professional Clients?

    Benefits of being classified as a Professional

    • New restrictions imposed by ESMA will not affect your account – therefore you will be able to trade using higher leverage.
    • You will still be eligible for the Financial Services Compensation Scheme protection up to £50,000.

    Protections you lose being classified as a Professional

    • You will lose the right to the Financial Ombudsman Service. Nonetheless Fortrade operates a ‘treating customers fairly’ policy and any complaint will be dealt with by an impartial compliance officer.
    • You will not be subject to the new leverage restrictions, therefore any profits or losses will be magnified.
    Account Verification Process
  • How do I apply to become a Professional Client?

    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:

    1. Traded in significant size an average of 10 times in each of the last 4 quarters on CFDs or forex.

     

    1. Have an investment portfolio of + 500,000 EUR. (Including cash savings / financial instruments)

     

    1. Worked for at least one year in the financial sector, gaining knowledge of CFD and forex trading.

     

    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 CriteriaSupporting Documentation
    1. Traded in significant size an average of 10 times in each of the last 4 quarters on CFDs or forexTrade statement from another broker / financial institution
    2. Have an investment portfolio of + 500,000 EUR (Including cash savings / financial instrumentsBank, 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 tradingLinkedIn Screenshot, FCA register screenshot, payslip or letter from employer

      

    Application Process

    If you would like to take advantage of becoming a professional client, please contact your representative or our support team at support@fortrade.com or download our Professional Client application form.

    Please complete the application form and email along with supporting documents to professionalsupport@fortrade.com

    Account Verification Process
  • What is ESMA and what are the new measures as of 01.08.2018?

    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:

    1. Margin close out level: Positions will automatically be closed if your margin level falls below 50% of the amount required. For example, if you open a position that requires 1,000 USD margin, when that position runs a loss of 500 USD, we will be forced to close your position.

     

    1. Negative Balance Protection – providing assurance that you cannot lose more than you deposit. We already have this in place, so you do not need to worry about any debt with Fortrade.

     

    1. Leverage Limits – The amount of leverage offered to retail clients has been reduced to the following:

     

     

    Asset ClassCurrent Leverage

    (remains for professional clients)

    New leverage from 29/07/2018

    (affecting retail clients only)

    Major FX Pairs200:130:1
    Minor FX Pairs200:120:1
    Gold200:120:1
    Commodities100:110:1
    Major Indices50:120:1
    Minor Indices25:110:1
    Shares10:15:1
    Cryptocurrencies5:12:1

     

     

    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:

     

    LeverageInstrumentSizePriceMargin Required (USD)
    Current Leverage 200:1EURUSD1 Lot (100,000 Units)1.1824591.20
    Limited Leverage 30:1EURUSD1 Lot (100,000 Units)1.18243,941.33

     

     

    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.

    • EURUSD
    • GBPUSD
    • USDJPY
    • USDTRY
    • EURTRY
    • USDCAD
    • AUDUSD
    • EURGBP
    • GOLD
    • CRUDEOIL
    • SILVER
    • GERMANY30
    • USA500 (Includingminicontracts)
    • WHEAT

     

    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.

    Account Verification Process
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.