PROFESSIONAL CLIENT ACCOUNTS
Professional CLIENT CATEGORIZATION
| MARGIN REQUIREMENTS | Professional |
|---|---|
| FX Majors | 1% / 100:1* Leverage |
| FX Minors | 1% / 100:1* Leverage |
| Gold | 1% / 100:1* Leverage |
| Indices | 1% / 100:1* Leverage |
| Commodities | 2% / 50:1* leverage |
| ACCOUNT CONDITIONS | |
|---|---|
| Negative balance protection | Not offered |
| Stop-out level | Equity = 50% of used margin |
| Investor Compensation Fund protection | No |
| Access to financial ombudsman | Yes |
| Funds held in segregated bank accounts | Yes |
* Professional margins/leverage are indicative and the level clients receive may differ. Also, margins can vary between symbols in the same asset class.
Eligibility Criteria for Professional Classification
Eligibility to be categorized as a professional client (as opposed to retail) is based on a combination of historic trade volume, work experience and financial ability to tolerate risk. In order to qualify clients must meet 2 of the following 3 criteria:
- Have sufficient history of relevant derivative transactions in each of the previous 4 quarters
- Hold cash or equity in financial instruments of 500k EUR or more
- Have professional experience in a role that requires knowledge of the services XGLOBAL provides
Risk warning: Choosing to change your client classification from retail to professional will result in losing protection that is available to retail clients.
How to Apply
If you are an existing client and wish to be re-categorized as professional and receive the relevant trading conditions please contact your account manager or the support department and make the request. If you are a new client please apply for a new account as normal and request to be categorized as professional by notifying support@xglobalmarkets.com.
You will be required to provide documentation to prove you meet the eligibility criteria.
Protection for Retail Clients
In 2018 ESMA (European Securities and Markets Authority) announced that it wanted to place certain restrictions on the CFD trading conditions that brokerage firms could provide to retail clients. The aim was to help protect inexperienced traders from significant or rapid loss. This protection included leverage caps, standardising account stop-out/liquidation levels, providing negative balance protection as well as prohibiting sign-up bonuses and similar incentives. These measures have since become permanently adopted by all European regulators including CySEC.
XGLOBAL has implemented all these measures for it retail client base while continuing to provide our well-informed and experienced client base the ability to trade as they desire by categorizing them as professional.
