ESMA (the European Securities and Marketing Authority) imposed a number of restrictions in 2018, designed to protect retail clients.
When classed as a professional you automatically forgo these safeguards afforded to retail clients.
Once you've opened a Professional account the leverage you can use increases and the margins to open and hold positions can reduce.
To qualify as a professional trader, you will need to provide evidence that you meet two of the following three criteria:
Do you currently work or have worked in the financial sector in a professional position for at least a year, requiring knowledge of derivatives trading?
Have you averaged ten significantly sized transactions per quarter, during the past year?
Do you have a financial instrument portfolio, including cash deposits, exceeding €500,000?
Applying for our professional trader account is a straightforward process. You'll follow a similar path to opening any other account. Once we have your application, we'll turn it around as quickly as possible.
Opening the Professional account requires careful consideration. In this FAQ section, we've answered a few of the most common questions our clients raise before they commit to opening their account.
You need to satisfy the criteria laid out in the application process. It's strict, but this is in order to protect you and your funds, because there are more risks associated with the Professional account.
Make sure you understand both the risks and rewards of a Professional account. There are features which can potentially impact on your trading outcomes.
If you currently have an ATFX trading account we'll process your pro-account request ASAP. However, there are no exceptions to the conditions required to open the Professional account. You still have to satisfy the criteria laid out in the application process.
ESMA, the European Securities and Marketing Authority, is an independent EU Authority that contributes to safeguarding the stability of the European Union's financial system. It does this by protecting investors and promoting stable and orderly financial markets.
In 2018, ESMA put in place a framework to protect and safeguard retail CFD traders. Their primary areas of focus were leverage, margin and negative balances. These three concepts form the bedrock of the protection ESMA has put in place.