Reduced margin rates as a Professional Trader
Experienced traders who meet the criteria can qualify for access to higher leverage and other account features including:
- Lower margin rates
- Access to a dedicated Client Relationship Manager
- A range of loyalty rewards and benefits
Professional clients can incur losses that exceed deposits
Lower Margin Requirements
Current Min. Retail and
New Min. Professional
New Min. Retail
From 1st August 2018, new industry-wide regulations will mean significantly increased minimum margin rates for all retail clients.
Professional Clients are exempt from these increases, and will receive margin rates that are lower than current rates across a range of asset classes. We will be updating our margin rates on 29th July 2018.
Qualify as a Professional Client
The European Securities and Markets Authority (ESMA) have agreed on product intervention measures on the provision of Spread Bet and CFD products to Retail Clients. This will result in minimum starting 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.
Professional Clients also:
- Remain eligible for the Financial Services Compensation Scheme if you are a natural person.
- Retain the rights to complain to the Financial Ombudsman Service when trading in a personal capacity.