The Updated ESMA Regulatory Framework
As of August 1, the regulatory framework will impose limits on leverage for Retail Clients that will considerably increase margin requirements on your future trading activity.
You can, however, request to be classified as a Professional Client, if you meet certain criteria.
MAIN CHANGES INTRODUCED
Maximum Leverage Limits
Maximum leverage limit on the opening of a position is set to be 30:1 for major currency pairs and less for other asset classes.
50% Margin Close-out
50% margin close-out rule on per account basis.
Guaranteed Limit on Losses for NBP
Negative balance protection to provide a guaranteed limit on client losses on a per account basis.
Prohibition of Benefits
Prohibiting the direct or indirect provision of monetary or non-monetary benefits.
Prohibition of Binary Options
Prohibiting the marketing, distribution or sale of binary options.
Standardized Risk Warning
Standardized risk warning, including figures relating to the respective CFD provider, on the percentage of Retail Client accounts that have lost money.
Criteria to meet in order to be classified as a Professional Client
You need to meet two of the below three criteria to be able to request to be classified as a Professional Client:
Carried out transactions, in significant size, on the relevant market at an average frequency of 10 transactions per quarter over the previous four quarters.
The size of your financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000.
You are working 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.
Information you may need to provide
Bank, Broker or investment portfolio statement or letter from a notary confirming net worth.
Proof confirming work experience in the financial sector.
Trade statement from another broker/financial institution.
Becoming a Professional Client
Being classified as a Professional Client means that we will be able to tailor our products and trading conditions to meet your trading needs outside the restrictions mentioned above, as leverage for professional clients can be up to 1:500.
Being classified as a Professional Client also means that you are not eligible for all investors’ protections schemes you had as a Retail Client. However, your funds will still be segregated and safekept with our credit institutions.
By signing and returning the request letter below, you are also confirming that you are aware of the consequences of losing some protections and investor compensation rights.
To make your request follow the steps below:
Download the Request Letter by clicking on the button below.
Read and sign the Request Letter.
Prepare an email with your request to be classified as a Professional Client and attach the signed letter.
Send the email with the signed letter attached to firstname.lastname@example.org
Risk Warning: Forex and CFDs are leveraged products and involve a high level risk. Seek independent advice if necessary.