Professional Client Accounts

XGLOBAL offers trading conditions suitable for experienced traders such as high leverage to clients that are categorised as professional. Clients that can prove they meet the eligibility criteria can request to be categorised as professional.

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CFD Trading is high risk. You may lose more than you invest.

Professional vs Retail Client Classification

XGLOBAL clients are categorised as retail when they initially sign-up, which restricts us to providing trading conditions that the European Securities and Markets Authority deem suitable for retail traders. New and existing clients that can prove they meet the eligibility criteria can request to be re-categorised as professional at any time. Professional clients are not subject to the same leverage limitations as retail traders but some of the protection offered to retail clients is lost.

Professional Retail
Margin Requirements
FX Majors 0.5% / 200:1 Leverage 3.33% / 30:1 Leverage
FX Minors 0.5% / 200:1 Leverage 5% / 20:1 Leverage
Gold and Silver (Spot) 2% / 50:1 Leverage 5% / 20:1 Leverage
Indices 1% / 100:1 Leverage* 5% / 20:1 Leverage
Commodities 2% / 50:1 leverage* 10% / 10:1 Leverage
Cryptocurrencies 35% / 2.85:1 Leverage 50% / 2:1 Leverage
Account Conditions
Negative balance protection Not offered Offered
Stop-out level Equity = 50% of used margin Equity = 50% of used margin
Investor Compensation Fund protection No Yes
Access to financial ombudsman Yes Yes
Funds held in segregated bank accounts Yes Yes
* Approximate leverage ratio as a different margin calculation method is used. Also, margins can vary between symbols in the same asset class.

Eligibility Criteria for Professional Classification

Eligibility to be categorised 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:

  1. Have sufficient history of relevant derivative transactions in each of the previous 4 quarters
  2. Hold cash or equity in financial instruments of 500k EUR or more
  3. 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-categorised 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 categorised as professional by notifying [email protected].

You will be required to provide documentation to prove you meet the eligibility criteria.

ESMA Restrictions for Retail Clients

From 1st August 2018 The European Securities and Markets Authority (ESMA) announced that it wanted to trial placing certain restrictions on the trading conditions CFD businesses could provide to retail clients. The aim is to help protect inexperienced traders from significant or rapid loss.

These restrictions include significant leverage caps, standardising account stop-out (liquidation) levels, providing negative balance protection as well as prohibition on sign-up bonuses and similar incentives. In addition brokers are also required to publish the percentage of clients’ accounts that have lost money trading CFDs.

These measures have been a shock to the industry as many traders demand leverage at much higher levels than those permitted. Nevertheless, while drastic XGLOBAL Markets see these changes as positive as we believe it will help protect those most vulnerable. Having said that we believe the overall success of these new rules will be based on the implementation of them. Our goal is therefore to protect vulnerable clients while providing our well-informed and experienced traders the ability to trade, business as usual by categorising them as professional.

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