You’re currently classified as a retail client with ATFX, how will The European Securities and Markets Authority (ESMA) changes affect you?
The European regulators have announced restrictions on certain products offered to retail clients, which came into force 1st August 2018.
This means minimum starting margin rates of between 3.33% and 20% on CFD Products.
- Major FX – 3.3% (Leverage 30:1)
- Major Indices & Gold – 5% (Leverage 20:1)
- Commodities – 10% (Leverage 10:1)
If you meet the FCA’s criteria and you wish to become a professional client with ATFX, these Margin rules will not apply to you. Please note that by electing to become a Professional Client you will forfeit other regulatory protections.
Benefits of being a Professional Client
FCA protections you will waive as a professional client
No-negative balance protection: When classed as a professional client, you will have an obligation to honour payments if your account was to fall into a negative balance as we are not obliged to restrict your account in any way.
Restrictions on CFD’s: The regulator has imposed leverage restrictions and other measures such as standardised risk warnings as a way of protecting retail clients. All Professional clients waive the right to these protections, and any future measures would also not apply to you.
Communication: As a Professional client we can use more sophisticated market language when we talk to you.
Experience: We may assume your level of experience when assessing whether our products are appropriate for you.
Best Execution: When executing Retail client orders, priority is the overall price and the cost of the transaction when giving best execution. As a Professional client other factors also apply such as speed and the likelihood of execution.