Retail vs Professional Client Status: What You Give Up
The criteria for opting up to professional status in the UK, EU and Australia, and which protections you lose.
Brokers in the UK, EU and Australia often invite experienced clients to "go pro" for higher leverage. It's worth understanding what changes.
EU / UK elective professional criteria
You generally need to meet at least two of three tests:
- Significant trading activity — on average 10 transactions of significant size per quarter over the previous four quarters
- A financial instrument portfolio (including cash) exceeding €500,000
- At least one year of relevant professional experience in the financial sector
Australia uses "wholesale client" tests based on net assets, income or sophisticated-investor certification.
What you lose
- Leverage caps (the point of opting up)
- Mandatory negative balance protection
- Standardised margin close-out at 50%
- In some cases, access to the ombudsman and compensation schemes
- Some disclosure and suitability protections
Be cautious about brokers that encourage clients to opt up without properly evidencing the criteria — regulators have fined firms for exactly this.