Qualify as a Professional Client to Keep Your Current Margin Rates
The European Securities and Markets Authority (ESMA) have agreed on product intervention measures on the provision of Spot Forex and CFD products to retail clients. This will result in minimum margin rates ranging between 3.33% and 50% (depending on asset class).
These restrictions won't apply to you if you qualify as a Professional Client. However, you would not be eligible for certain other regulatory protections.
Professional client status details
We are not obliged to offer the following to Professional Clients but have elected to continue doing so:
Client money remains segregated from our funds and will be unaffected in the event of our insolvency.
Best Execution remains unchanged as we owe all our clients a duty of best execution.
The detail of Trade Confirmations remain unchanged and are sent by the end of the first business day following the execution of the trade, or earlier.
Key Information Documents remain available to you.
You will waive some FCA protections:
Margin and Leverage Limits remain unchanged despite the changes that ESMA introduce for retail clients.
Mandatory changes to product features which protect retail clients will not be mandatory for you. (e.g. negative balance protection and margin close out levels).
We will assume you have the relevant knowledge and experience levels to understand the risks in trading leveraged products.
We may use more sophisticated language when dealing with you as a Professional Client than we do with our retail clients.
Meet 2 out of 3 criteria to qualify
Qualification criteria in detail
Trade size & Volume
You have had traded, in significant size, in the forex/CFD markets or other leveraged products (e.g. indices, shares, spread bets, futures, options, other derivatives etc.) at an average frequency of 10 transactions per quarter over the previous four quarters (with FOREX.com and/or other providers).
Significant sized trades are classified as having a notional value of £10,000 for equities and £50,000 for forex, indices and commodities or equivalent in local currency.
Size of portfolio
The size of your financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000 (or equivalent in your local currency).
Acceptable examples of savings and investments: Cash savings, stock portfolio, stocks and shares ISA, trading accounts, mutual funds, SIPP (excluding non-financial instruments).
Unacceptable examples of savings and investments: Company pension, non-tradeable assets, property, luxury cars, jewellery.
You work or have worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.