How ESMA’s New Guidelines Might Shape Your Trading
On August 1 st, 2018, the European Securities and Markets Authority (ESMA) has made a number of changes to the manner in which trading platforms offer leveraged products to retail traders.
By applying for the professional client account with Ainvesting, you could enjoy better trading terms.
You may request a re-categorization as a professional client to avoid the impact of the new European Securities and Markets Authority’s (ESMA) restrictions on retail clients.
To qualify for the professional categorization, you must have the necessary expertise, experience, and knowledge to be capable of making your own investment decisions.
You will also need to comply with at least two of the following three regulatory criteria and provide us with the relevant proof:
You must have carried out transactions, in significant size, in CFDs with an average frequency of at least 10 trades per quarter during the previous year (with us and/or other CFD providers).
Significant size is deemed as a minimum notional value of, for example, $50,000 on currency pairs, indices, and commodities or $10,000 on single stock CFDs.
The average frequency of trades can be at one provider, or a combination of two or more. We will ask you for history statements for trading activity with other CFD providers.
The size of your investment portfolio (held with us and/or other providers) is defined as including cash deposits and financial instruments, exceeds EUR 500,000.
Acceptable examples of an investment portfolio can include: cash savings, stock portfolio, debt instruments, ETFs, trading accounts, and mutual funds.
Unacceptable examples include: company pension, non-tradeable assets, property, luxury cars, jewelry, and notional values of leveraged instruments.
If a portfolio is held with other investment firm, we will ask you for statements from the other party.
You currently work or have worked in the financial sector for at least one year in a professional position that requires knowledge of the transactions or services envisaged.
We will ask you for details of your role, and how it has provided you with sufficient knowledge and experience. We may require you to provide evidence of this if necessary.
|PRODUCT RANGE||PROFESSIONAL CLIENT ACCOUNT LEVERAGE||RETAIL CLIENT ACCOUNT LEVERAGE|
|CFDs on MAJOR CURRENCY PAIRS||up to 400:1||30:1|
|CFDs on NON-MAJOR CURRENCY PAIRS||up to 400:1||20:1|
|CFDS on MAJOR INDICES||up to 300:1||10:1|
|CFDS on NON-MAJOR INDICES||up to 300:1||20:1|
|CFDs on COMMODITIES other than Gold||up to 200:1||10:1|
|CFDs on SHARES, ETFs & BONDS||up to 50:1||5:1||CFDs on CRYPTOCURRENCIES||up to 25:1||2:1|
The clients defined above may waive the benefit of the detailed rules of conduct only where the following procedure is followed:
Before deciding to accept any request for waiver, the Company is required to take all reasonable steps to ensure that the client requesting to be treated as a professional trader meets the relevant requirements stated above.
A Client who wishes to be re-classified shall contact our Customer Support at [email protected], and the Company will respond accordingly after reviewing the request.
Professional clients are responsible for keeping the Company informed about any change which could affect their current categorization. Should the Company become aware, however, that the client no longer fulfils the initial conditions which made him eligible for professional treatment, then the Company will take appropriate action.