FXG Professional Client
The new industry-wide regulations which come into effect on the 1st of August 2018
from the European Securities and Markets Authority (ESMA) are changing
the trading environment for Retail Clients.
Professional Clients, however, are exempt from these changes.
- Check your eligibility to become a Professional Client
- To qualify as a Professional Client, you need to meet at least two of the following three criteria:
- Trading volume
An average of 10 significantly sized transactions per quarter over the last four quarters.
A financial instrument portfolio, including cash deposits, exceeding €500,000 or currency equivalent.
- Work Experience
Worked in the financial sector in a professional position, requiring knowledge of the transactions or services envisaged, for 1+ year(s).
- Professional Clients benefit from the below advantages
- FSCS Protection
Eligible clients are protected by the Financial Services Compensation Scheme
Excess of FSCS Insurance cover protection up to £1,000,000 per client
- Flexible Leverage
Up to 1:500 for professional clients
- Negative Balance Protection
Protection against market volatility ensuring that your losses do not exceed your total investment in the event of a failed margin call or stop out.
- Financial Ombudsman Service
Retain the rights to complain to the Financial Ombudsman Service when trading in a personal capacity
All trading involves risk. It is possible to lose all your capital
Professional Client Status Details
Professional Client Status Details
It is important that you understand exactly how a Professional Client will be treated
differently to a Retail Client should you wish to apply for Professional Client status:
- Unchanged Protections
- 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 held in fully segregated accounts with top-tier banks
- Best execution remains unchanged as we owe all our clients a duty of best execution.
- Negative balance protection
- Key Information Document remain available to you
- Waived Protections
- You will waive some FCA protections:
- Margin and Leverage Limits remain unchanged despite the changes that ESMA introduce for retail clients
- We will assume you have the relevant knowledge and experience levels to understand the risks in trading leveraged products.
- Communications: We may use more sophisticated language when dealing with you as a Professional Client than we do with our retail clients.
Qualification Criteria in Detail
- In order to qualify to become a Professional Client, you will need to meet at least 2 out of the 3 eligibility criteria outlined by the FCA.
- There will be no change to tax status or any additional cost to change to Professional Client status.
- The criteria are as follows:
- Trade size & VolumeYou have traded, in significant size, in the CFD/forex/spread bet markets or other leveraged products (e.g. indices, shares, spot FX, futures, options, other derivatives etc.) at an average frequency of 10 transactions per quarter over the previous four quarters.
- 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 portfolios, 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.
- Professional Experience: 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.