Why is there a lower leverage limit under retail terms?
Leverage available to retail clients is intentionally lower than that available to professional clients.
Lower leverage acts as a protection for retail clients by reducing the maximum exposure that a retail client can have to the markets. This in turn reduces the potential loss that a retail client may incur if market movements are unfavourable.
Why do I need a negative balance protection?
When trading on margin,there is the possibility that the balance (or value) of your account can go negative,if the market(s) in which you have a position gaps abruptly.
Retail terms provide a full protection against negative balances.
According to statistics of Admiral Markets Group, the average compensation of negative balances made in 2017 was 78 GBP.
Why do I need to be able to complain to regulators?
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.