London-based FX and CFDs brokerage company ActivTrades is looking to provide advanced protection for professional investors. The company has just announced that it is launching a new type of accounts that is designated to that are more experienced.
After the upcoming introduction of the leverage cap for retail traders on the part of the European Securities Markets Authority (ESMA) earlier , reclassifying to a professional client has become one of the options a trader can use to continue using high leverage.
Brokers have been looking for ways to diversify their , and ActivTrades has chosen to beef up the protection which its professional clients have. The firm will be enabling pro traders to use up to 1:400 leverage and keeps enhanced insurance of up to £1 million. The company also states that professional clients will have negative balance protection and their funds will be kept in a segregated account at all times.
Professional Clients Criteria
Customers of ActivTrades will have to meet certain obligations under the new rules, which are in accordance with the elective professional client’s designation under European law. Traders will have to meet two of a list of three essential criteria.
A client willing to designate himself/herself as professional would need to have carried out at least 10 significantly sized transactions per quarter; or the size of the client’s financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000; or 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 which are discussed.
Commenting on the company’s move, the CEO of ActivTrades, Alex Pusco, said: “Client safety continues to be at the center of our operations and we welcome regulatory changes that endeavor to make the industry a safer environment for traders.”
“Our new Professional Account will provide experienced traders greater flexibility in the markets, by allowing them to keep a leverage up to 1:400 after ESMA’s proposed changes take effect. Best of all, clients have added assurances from our truly excellent client protection as well as a dedicated account representative to assist them along their trading journey,” Pusco explained.
Clients that have chosen the ActivTrades Professional Account will be able to trade all of ActivTrades’ products including Forex, ETFs, Cryptocurrencies, Indices, and Commodities, on CFDs and spread betting, using MetaTrader 4, 5 and ActivTrades very own ActivTrader platform.
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