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
Reduced margin requirements (increased leverage)
As a professional client, you can trade at 15-25 times lower margin rates than those provided to retail clients, with the maximum leverage of 1:500 for currency pairs, indices, energies and precious metals.
Full access to bonus programs
As a professional client, you have full access to all existing and prospective bonus programs.
Limited negative balance protection
As a professional client, you receive a compensation of account deficits with the maximum payout of 50,000 GBP, as per our Policy.
Limited possibility to resolve disputes via regulatory bodies
As a professional client, you can resolve disputes via regulatory bodies if you are an individual trader (`Consumer`) and you don`t have this right if you are trading on behalf of a legal entity.
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.
When trading on margin, there is a non-zero possibility of reaching a negative balance, e.g. if you have a large position with high leverage and the market moves abruptly against it.
Retail terms provide a full protection against negative balances and professional terms have a limit of 50,000 GBP for covering negative balances, as per our Policy.
According to statistics of Admiral Markets Group, the average compensation of negative balances made in 2017 was 78 GBP.
You may be willing to escalate a dispute to the Financial Ombudsman Service (FOS) if you think that it has been resolved by us with a breach of any kind.
Retail clients are fully eligible for complaining to the FOS, while professional clients can only use this right if they are qualified as `Consumers` (i.e. individual traders). Professional clients trading on behalf of legal entities do not have this right.
In any case, it is essential to understand that we are a regulated financial services firm and always aim at resolving all disputes in compliance with applicable laws and regulations.