Trade size and volume
Big size trades are considered to be anything greater than the notional value of €10,000 for equities (stocks) and €50,000 for FX, indices or commodities.
Size of your Portfolio
The size of your portfolio is made of financial assets, including cash deposits and financial assets, and exceeds €500,000, or has the same equivalent in your local currency).
In order for a client’s application to be considered for professional classification the client must state in writing to fxoro that they wish to be treated as a professional client. Additionally the client also needs to meet at least 2 out of the 3 below criteria:
Trade size & Volume
The client has traded, in significant size, in the spread/forex/CFD 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 (with fxoro 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 the client’s financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000 (or equivalent in your local currency). Appropriate savings and investments: Cash savings, stock portfolio, stocks and shares ISA, trading accounts, mutual funds, SIPP (excluding non-financial instruments). Inappropriate savings and investments: Company pension, non-tradeable assets, property, luxury cars, jewellery.
The client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.
European Securities and Markets Authority (ESMA) applied the new regulation from 1 August 2018 for CFDs. The new regulation will change the existing setting of clients account regarding margin and leverage. The new changes will hamper usage of margin for retail clients, the changes are as listed below:
Professional clients warning
ESMA’S Product intervention measures and framework, do not apply for Professional Clients hence the client is not legible to the full protection of the Law in regards to his trading experience. Additionally Professional Clients are not legible for the Investor Compensation Fund. For more details please see our Risk Warning Notice, Investor Compensation Fund and Client Categorization Policy pages.
It is the responsibility of the client, considered to be a professional client, to ask for a higher level of protection when it deems he/she is unable to properly assess or manage the risks involved. This higher level of protection will be provided when a client who is considered to be a professional enters into a written agreement with the Company to the effect that it shall not be treated as a professional for the purposes of the applicable conduct of business regime of fxoro.
For further information regarding the above please see our Risk Warning, Client Categorization Policy and Terms and Conditions or contact a member of our great customer support team at [email protected].