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What is the difference between Retail and Professional Clients?

Why do the brokers divide all the investors into Retail and Professional Clients?

The major goal is to provide maximum security and the best support. This policy also allows you to choose the option that fits best for you. If you want maximum security, you should choose to be a Retail Client, while if you are a seasoned trader, able to assess risks and willing to trade based on your own experience, you can become a Professional Client.


Let's assume the following: you've got a yacht and you decided to go sailing. When you set off, the weather is sunny, with a good breeze. However, just two hours later a storm starts, with the skies being covered with clouds, and the yacht being very unstable because of the waves.

CFD Trading is very similar to the sea where the whether is constantly changing. This is why, prior to setting off, you need to assess your skills and understand which status is better and more comfortable for you: Professional or Retail. Retail status is something like sailing near the shore, as you are fully protected while enjoying trading. Conversely, being a Professional Client means go to the open sea and find new horizons.

Click here to learn more on client categorization


Retail Clients

When you open your account, you automatically get the Retail Client status. The following shows the leverage breakdown depending on a particular asset class :

a. 30:1 for major currency pairs (3.33% margin)

b. 20:1 for minor currency pairs, gold, and major indices (5% margin)

c. 10:1 for commodities other than gold and minor indices (10% margin)

d. 5:1 for individual equities and other reference values (20% margin)

e. 2:1 for cryptocurrencies (50% margin)


Professional Clients 

Unlike retail traders, Professional Clients are experienced traders that know how to assess and watch all risks one can face while trading.

If you become a Professional Client, you will be able to trade without any limits imposed by the leverage, which will allow you to open larger trades with the same initial investment.


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