Your guide to the best brokers in the UK Forums General Broker Discussion Q&A how do I qualify as a professional client?

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    This is a hot topic at the moment.

    The new ESMA regulations have significantly reduced the margin rates that retail traders get.

    We’ve covered whether you should but how do you go about it?

    When you log into to your brokerage account or apply for a new one you will almost certianly be asked if you qualify to upgrade as a professional client and get better rates.

    The official requirement is to satisfy two of these three statements:

    (a) the client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters;

    This means roughly £10k per trade. But varies per broker.

    (b) the size of the client’s financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000;

    This doesn’t include property and only count liquid assets

    (c) the client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.

    This means experience in finance with specific focus on leverage trading and derivatives investments.

    You also can’t just tick boxes and fib that you do because brokers take these professional status upgrades very seriously as professional clients lose some FCA protections and assistance.

    If brokers don;t do sufficient due diligence when upgrading clients and there is a problem further down the line they will get in hot water.

    So, bear with the brokers which they do their checks and apply as honestly as you can.

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