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Professional client

Professional client status lets you go beyond retail leverage caps, in exchange for losing several protections reserved for retail clients.

To be classed as professional on request under EU and UK rules, you normally need to meet at least two of three criteria: an average of ten significant-size trades per quarter over the last four quarters, a portfolio of financial instruments and cash deposits above €500,000, or at least one year working in the financial sector in a role that requires knowledge of the products.

In exchange for higher leverage, you may lose negative balance protection, the 50% close-out rule and some disclosure safeguards.

Be wary of brokers that push this status on beginners: it is often a sign of an aggressive sales model.

The full lessonESMA and FCA rules: leverage limits, negative balance protection and pro statusESMA and FCA leverage limits by asset, 50% close-out, negative balance protection, professional client status and offshore brokers: what really protects you.← Full glossary