Becoming a Pro Trader
Trade on Trade360 is done with accordance to the CySEC regulations, and as such, it adheres to recently-adopted measures by the European Securities and Markets Authority (ESMA). These measures pose different limitations on CFD trading. However, clients with a Professional account can keep trading under the previous conditions. Both veteran and new clients of Trade360 can apply for a Professional account.What are the differences between a Professional account and a retail account?
With the new ESMA limitations, the main difference between a Professional account and a retail account is in the leverage ratios. The leverage limits set by ESMA are aimed at lowering traders’ potential losses, but they also limit their potential profits. A Professional account is not subject to these limitations, as the following table of selected assets demonstrates:
| Asset | Elective Pro Leverage |
|---|---|
| Major currency pairs | 1:500 |
| Oil | 1:200 |
| Gold | 1:200 |
If we take the currency pairs as an example: With a Professional account and a $1,000 balance, you can open a 340,000 EUR/USD position and earn or lose $34 for each pip. A 10-pip movement on the EUR/USD will result in a profit or loss of $340. With higher leverage, a professional account provides you with greater potential profits, but also with greater potential losses.
What is the Leverage Ratio under a Retail Account?
With the ESMA restrictions, there is a limitation on the leverage ratio that a client can have under a retail account aimed to protect and to minimise trader’s potential losses or profits. A retail account is subject to these limitations as the following table of selected assets demonstrates:
| Asset | Retail account leverage |
|---|---|
| Major currency pairs | 1:30 |
| Oil | 1:10 |
| Gold | 1:20 |
If we take the currency pairs as an example: When you have a $1,000 balance and you open a 25,000 EUR/USD position, you earn or lose $2.5 for each pip. A 10-pip movement on the EUR/USD will result in a profit or loss of $25.
Switching to a Professional account
Not everyone is eligible for a Professional account. If you want to check your eligibility and apply for a Professional account, please click on the button below.
