Professional client
A professional client is a trader who meets specific criteria for experience and capital, gaining access to higher leverage.
A professional client status is granted by brokers to traders who fulfill strict regulatory requirements concerning financial knowledge, trading experience, and capital. These criteria, often including a portfolio value exceeding €500,000 and significant trading activity, allow the client to forgo some retail investor protections. This classification enables access to trading conditions typically unavailable to retail clients.
For professional clients, the primary practical implication is significantly higher leverage, such as 1:500 or more, compared to the 1:30 limit for retail traders in some regions. While this magnifies potential profits, it also dramatically increases the risk of substantial losses. Professional clients waive protections like negative balance protection and compensation scheme access, assuming greater personal responsibility for their trading outcomes.
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