Learn about Professional Client Reclassification.
Professional Client Reclassification
- Professional Clients are not entitled to compensation under the Investor Compensation Fund
- The Company is not obliged to inform professional clients with regards to information related to Company, services and applicable charges (e.g. costs, commissions and fees)
- European Securities and Markets Authority’s limitations to protect retail traders on CFDs such as, among others, leverage limits, margin requirements and requirement to provide relevant risk warnings do not apply to professional clients.
- A Professional Client is expected to have the necessary experience and knowledge in order to understand the risks involved with trading complex financial products and conducting transactions.
You can find full information with regards the protections that professional clients are not entitled to in our Client Categorization policy.
How to be reclassified as a Professional Client
Two out of the three criteria below are required:
- the Client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters;
- the size of the Client's Financial Instrument portfolio*, defined as including cash deposits and financial instruments exceeds 500,000 Euros;
- 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.
*Instrument Portfolio includes any liquid assets such as:
- Shares, Derivatives, debt instruments, deposits, Cash at a Bank or Broker for the purpose of investments,
- Fixed deposits with maturity less than 2 years, Bonds, Money Market Instruments
- Life Insurance with collateral invested, Crypto Assets, other Instrument Portfolios
- Any purchase which is made with the intention of future sale at a higher price. Illiquid assets could qualify if the client is investing professionally in such assets.
**If you believe that you can be accepted by XTB as a professional client, please contact your Customer Support Agent for more information. Please note that you shall be requested to provide evidence to ensure the above requirements are satisfied
Please be aware that the higher leverage applicable to professional clients leads to higher risks.
*For more information about the products you can refer to instrument specification
*Please note that for Trading Accounts above $2 Million Leverage will be limited to 1:100
What are the steps to become a Professional Client?
- Apply for a professional status
Register your interest by submitting the necessary details via email to your Customer Support Agent.
- We’ll contact you for more information
We’ll get in touch to discuss requirements and verify eligibility
- Send the completed application
Your application is complete once you send in required documentation. We’ll inform you whether you’re eligible