Margin and Leverage Rules

The Updated
ESMA
Regulatory
Framework

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The regulatory framework has changed and has imposed limits on leverage for Retail Clients that considerably increased margin requirements on your trading activity.

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.

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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:

1

Carried out transactions, in significant size, on the relevant market at an average frequency of 10 transactions per quarter over the previous four quarters.

2

The size of your financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000.

3

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..

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 1:300.

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:

  • 1Download the Request Letter by clicking on the button below.
  • 2Read and sign the Request Letter.
  • 3Prepare an email with your request to be classified as a Professional Client and attach the signed letter.
  • 4Send the email with the signed letter attached to support@argusfx.com
Download Request letter

Risk Warning:

CFDs are complex leveraged products and involve a high level of risk. 63% of retail investor accounts lose money when trading CFDs with this provider. You should ensure that you understand the risks involved and that you can afford the possible risk of losing all your money. Seek independent advice if necessary.