Trade with Higher Leverage
The first and most relevant benefit of classifying as a professional trader is the ability to maintain high leverage. Doing this will allow you to trade with a variety of trading techniques by using less funds for a more flexible money & risk management trading experience. Leverage also brings the risk of bigger losses.
Keep Negative Balance Protection
Usually, brokers are not required to segregate the funds of a Professional Trader from their own funds, which means they could deposit them to liquidity providers and if those liquidity providers go out of business, your funds could be lost.
At FXVC, we segregate all our client’s funds from the own funds and we continue offering you the negative balance protection for both Retail and Professional traders that will prevent you from losing more than what you invested.
Still receive Best Execution Policy
With other brokers you may lose your right to best execution policy according to its definition from the applicable regulation. Best execution policies for retail traders require their brokers to give priority to executing their order with the best possible price. This factor prevails other considerations like execution speed, size of your order, current market depth etc. which all play a part in the quality and outcome of your order.
At FXVC, we believe in fairness and honesty and we will maintain the best possible execution for you even becoming a Professional Trader.
Communications & Risk Disclosures
Other brokers will no longer be required to disclose risks to you as a professional trader, meaning you may be unaware if the products you trade become on average, riskier. Also, average brokers can communicate with you in a very different tone and make assumptions about what you already know about the products you are trading. This could result in you investing without the important information needed to make calculated decisions.
But deem necessary, your Client Relation Manager with FXVC will be more than happy to update you and inform you in advance, on expected high volatile movements that might exposed you on high risk.
Access to Investor Compensation Fund
Most competent authorities (financial regulators) in Europe offer some type of scheme to compensate investors in the event that their broker goes out of business. CySEC offers the Investor Compensation Fund only to retail traders which covers a client’s funds up to EUR20,000 in case the Company is unable to pay that client; for example, in the unlikely case a company goes bankrupt.
However, is not in our plans to go bankrupt! Our goal is, through our quality service and state of art trading platform, to increase our satisfied clientele and expand our business operations.
Do you qualify to become a Professional Trader?
Under the regulation a client has the right to request a change of his/her categorization, from Retail to Professional however, this change will only be possible if the client fulfils at least 2 of the following 3 conditions:
1.You have performed at least 10 transactions per quarter or 40 transactions over the last year, of significant size, over the previous four quarters on the relevant market (with FXVC and/or other providers).
2.The size of your financial instrument portfolio, defined as including cash deposits and financial instruments exceeds EUR 500 000.
3.Relevant experience in the financial services sector and/or relevant qualification (working in a professional position which involves knowledge of the industry for at least 1 year).
If you believe that you qualify to become a Professional Client, please contact our Support Team or your Client Relationship Manager specifying which of the above conditions you fulfill and request to change the categorization.