Retail client

A retail client engages in trading activities using their own capital, typically through online brokers. These individuals are generally subject to specific regulatory protections and restrictions, such as leverage limits and negative balance protection, designed to safeguard their investments. They access markets through platforms provided by brokers who execute their trades.

For a retail trader, this classification means tighter regulatory oversight compared to professional clients, often resulting in lower available leverage, for example, 1:30 for major currency pairs in some jurisdictions. This limits potential profits but significantly reduces risk exposure. They also benefit from compensation schemes and dispute resolution services.