Retail and Professional Trading Terms
Find out the key benefits and trade-offs of retail and professional trading terms.
Retail Trading Terms
Full negative balance protection
As a retail client, you receive an unconditional compensation of any account deficits resulting from your trading.
Stronger regulatory protection
As a retail client, you benefit from all the regulatory protections given to retail clients.
Increased margin requirements (reduced leverage)
As a retail client, you have a regulatory requirement to trade at 17-25 times higher margin rates than those available to professional clients, with the maximum leverage of 1:30 for currency pairs and 1:20 for indices.
No access to bonus programs
As a retail client, you have a regulatory restriction for receiving any trading incentives such as cashback, rebates or discounts.
Professional Trading Terms
Margin Requirements for Most Popular Instruments
WTI crude oil
How to proceed?
Questions and Answers
Retail accounts have a limited leverage because of the conclusions made by the European Securities Markets Authority (ESMA), according to which most traders tend to be unprofitable, while a higher leverage increases both rewards and risks.
Trading in financial markets is a complex area, which requires extensive learning and dedication in order to succeed and there is no easy money at all, just like elsewhere.
Due to restrictions on the maximum leverage, as a retail client you need 17-25 times more funds for margin collateral so you are less likely to overexpose your account or use trading strategies with high risk/reward ratios, such as scalping or news trading.
Retail clients do not receive any rebates, cashback and other bonuses because these benefits incentivise trading, while it is observed by ESMA that trading in financial markets is a highly risky activity and may not be appropriate for everyone.
Following this approach, only professional clients are eligible for bonus payments.