CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
A Professional Environment for Professional Traders
Elective professional traders can open an FXCM professional account. If you are able to answer yes to two or more of the following, you may be eligible:
Have you traded leveraged derivatives in significant sizes over the last four quarters?
Do you have a financial instrument portfolio exceeding EUR 500,000?
Have you worked in the financial sector, in a professional position requiring knowledge of derivatives trading, for at least a year?
In addition to the above criteria, to qualify for professional categorisation, you must have the necessary expertise, experience and knowledge to be capable of making your own investment decisions.
You need to be aware that professional clients forgo certain regulatory protections that are currently offered to Retail Clients under the Cyprus Securities and Exchange Commission ("CySEC") rules. These include but are not limited to the following:
Negative Balance Protection: You are responsible for ensuring that your account does not fall into a negative balance. If it does, you will need to make additional payments to bring your balance back above zero – meaning that your losses can exceed your deposits.
Leverage limits: FXCM is required to limit leverage on different products offered to retail clients to comply with CySEC requirements. These restrictions do not apply to professional clients and higher leverage can work against investors and amplify losses.
Risk Warnings: FXCM will not be required to provide you the current risk warnings we provide to retail clients in relation to transactions in complex financial instruments.
Compensation: Certain categories of professional clients are not eligible for compensation under the Investor Compensation Fund.
Financial Ombudsman: The services of the Financial Ombudsman in Cyprus may not be available to professional clients.
Please ensure that you read and understand the Client Categorisation Notice as it contains important information regarding the differences in classification and the protections afforded to each level.