New Min. Professional
New Min. Retail
From 1st August 2018, new industry-wide regulations will mean significantly increased minimum margin rates for all retail clients.
Professional Clients are exempt from these increases, and will receive margin rates that are lower than current rates across a range of asset classes.
Trade with reduced margin rates and be exempt from product restrictions
Support for all your trading needs with a dedicated Client Relationship Manager
Remain eligible for protection from the FSCS and the Financial Ombudsman Service
You'll need to have a SALT Trading account before you apply. Open an account in minutes here.
CHECK YOUR ELIGIBILITY
To qualify, meet the professional client eligibility criteria below.
COMPLETE YOUR APPLICATION
Apply quickly and easily with our simple online application form.
BECOME A PROFESSIONAL
Once approved, receive reduced margin rates and priority service.
To qualify as a Professional Client you need to meet two of these three criteria:
If you’re eligible, then you can apply now
The table below shows you how leverage limits will affect
the margin required to open a position from 1st August:
|Market||Trade Size||Opening Price||Margin required for
for Retail Clients
|Germany 30||1 CFD||12,000||£27 (400:1)||£540 (20:1)|
|GBP/USD||1 CFD||1.400||£24.44 (400:1)||£325.80 (30:1)|
|Barclays||100 CFDs||210||£6.30 (33.3:1)||£42 (5:1)|
|Bitcoin $||1 CFD||8,000||£279.27 (20:1)||£2,792.68 (2:1)|
It is important that you understand exactly how a Professional Client will be treated differently to a Retail Client should you wish to apply for Professional Client status:
We are not obliged to offer the following to Professional Clients but have elected to continue doing so:
Client money remains segregated from our funds and will be unaffected in the event of our insolvency.
Best Execution remains unchanged as we owe all our clients a duty of best execution.
The detail of Trade Confirmations remain unchanged and are sent by the end of the first business day following the execution of the trade, or earlier.
Key Information Documents remain available to you.
You will waive some FCA protections:
Margin and Leverage Limits remain unchanged despite the changes that ESMA introduce for retail clients.
Mandatory changes to product features which protect retail clients will not be mandatory for you. (e.g. negative balance protection and margin close out levels).
We will assume you have the relevant knowledge and experience levels to understand the risks in trading leveraged products.
We may use more sophisticated language when dealing with you as a Professional Client than we do with our retail clients.
Professional Clients also
Remain eligible for the Financial Services Compensation Scheme if you are a natural person.
Retain the rights to complain to the Financial Ombudsman Service when trading in a personal capacity.
In order to qualify to become a Professional Client, you will need to meet at least 2 out of the 3 eligibility criteria outlined by the FCA. There will be no change to tax status or any additional cost to change to Professional Client status.
The criteria are as follows:
Trade size & Volume
You have traded, in significant size, in the spread bet/forex/CFD markets or other leveraged products (e.g. indices, shares, spot FX, futures, options, other derivatives etc.) at an average frequency of 10 transactions per quarter over the previous four quarters (with SALT Invest and/or other providers).
Significant sized trades are classified as having a notional value of £10,000 for equities and £50,000 for forex, indices and commodities or equivalent in local currency.
Size of portfolio
The size of your financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000 (or equivalent in your local currency).
Acceptable examples of savings and investments: Cash savings, stock portfolio, stocks and shares ISA, trading accounts, mutual funds, SIPP (excluding non-financial instruments).
Unacceptable examples of savings and investments: Company pension, non-tradeable assets, property, luxury cars, jewellery.
You work or have worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.
Margin close-out levels will change considerably under the new ESMA proposals. Initially the body proposed a 50% margin close out level which would have been enforced on a position basis.
As part of a consultation process involving some of the UK’s largest brokers, ESMA has adopted a more realistic, standardised approach on an account level basis.
This means that under new proposals, a broker will be required to close one or more positions should a client’s account balance drop below 50% of the required margin.
Under the new ESMA regulations, all retail traders will be required to have negative balance protection available on their account. This means that their account balance will never be allowed to go below zero, regardless of market conditions.
Capital at risk.
80% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you can afford to take the high risk of losing your money. Capital at risk.