About eToro's Professional Account for Professional Client

At eToro, it keeps things fair and simple and enable you to trade 1500+ instruments in 8 asset classes on multiple platforms with just one pricing and under the same conditions as other customers with just one account type.

To make it easier for you, we’ve put together all of the information about eToro’s account specifications below for a quick comparison.

What is “Professional Client”?

As a professional client at eToro, you benefit from lower margin requirements (shown for each asset class in the “Standard Margin” column of the contract details ), which are not subject to the ESMA restrictions for private clients.

Specifically, this means a leverage of up to 1: 400 on foreign exchange and 1: 100 on CFD instruments (crypto currencies, indices, commodities, etc.).

Even if such flexibility in trading means a higher risk and the waiver of negative balance protection, in return you get additional opportunities to implement your sophisticated investment strategies with appropriate risk management.

Open eToro’s Professional Account

Who can open Professional Account?

To be classified as a Professional Client, you must have documents showing that you meet at least two of the following three criteria:

• You have made an average of ten transactions of significant size in the relevant markets over the past four quarters per quarter.
• Your financial portfolio (including cash deposits and financial instruments) exceeds EUR 500,000.
• You have or have held a professional position in finance for a period of at least one year which required knowledge of the desired transactions or services.

If you do not qualify as a professional client, you can still trade over a thousand instruments on different platforms with eToro as a private client and benefit from negative balance protection.

Go to eToro Official Website

How to become a Professional Client?

will be asked to fill out a customer categorization questionnaire. Once your live trading account has been verified and activated, simply follow these steps to apply for a Professional Client rating:

1. Sign in to eToro’s client portal.
2. If applicable, complete and submit the customer categorization questionnaire (this can only be done once).
3. Provide all the documents needed to verify the rating by replying to the email you will receive from eToro’s customer service team.

Sign up to become a Proefssional Client

Difference between Professional and Normal Accounts

Before applying for a Professional Client rating, it is important that you understand all of the restrictions that come with it.

Please read the following list of changes to the trading conditions that will come into effect if you are no longer categorized as a private customer but a professional customer:

• Your orders are not necessarily always processed in accordance with the best possible execution rule, which applies to private customers.
• Your orders will not necessarily be executed according to the procedures and modalities that eToro has put in place to protect the interests of retail customers in a fair and direct manner.
• You will not be asked to pass an aptitude test (as required for retail clients) to demonstrate your expertise in selecting the financial products or services that are relevant to you.
• eToro may not provide you with detailed information about the company’s services, financial instruments, proposed investment strategies and venues, or the processes through which eToro is paid, or any other information made available to retail clients.
• You do not necessarily receive post-trade order execution or investment management reports from eToro.
• You are not entitled to benefits from the Investor Compensation Fund, which is intended to protect private customers.
• They are not covered by the negative balance protection offered by eToro for private customers.
• Your funds are subject to the company’s ownership transfer agreements.

Go to eToro Official Website

Posted by FXBonus

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