Retail and Professional Trading Terms
Find out the key benefits and trade-offs of retail and professional trading terms.
Retail Trading Terms
Benefits
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 will benefit from all the regulatory protections given to retail clients.
Trade-offs
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
Benefits
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.
Trade-offs
Limited negative balance protection
As a professional client, you receive a compensation of account deficits with the maximum payout of 50,000 EUR, 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
EURUSD
GOLD
Germany DAX40
WTI crude oil
How to proceed?
Retail Terms
If you would like to benefit from the extra protection afforded to retail clients, please register in Trader`s Room and just skip the Professional application step in the account opening form.
Professional Terms
If you are eligible to become a Professional client, please register in Trader`s Room and fill the Professional application form when opening an account.
Existing Clients
If you already have an account with us and and you’re eligible to become a Professional client, please submit a form in the `Professional Terms` tab in Trader`s Room.
Questions and Answers
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Why is there a lower leverage limit under retail terms?
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.
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.
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Why is there a prohibition on bonus payments to retail clients?
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.
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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 and professional terms have a limit of 50,000 EUR for covering negative balances, as per our Policy.
According to statistics of Admirals Group, the average compensation of negative balances made in 2017 was 89 EUR.