The European Securities and Markets Authority (ESMA) has adopted new guidelines for offering CFDs (Contracts for Difference) to retail clients. These guidelines are scheduled to become effective on August 1, 2018 and will encompass all companies that offer CFD trading services in the EU. Being a retail client of R1Investing , the new ESMA guidelines will be relevant to your trading activity and account without exception.
In line with these guidelines, we will be forced to alter the Leverage on offer for our trading products and the margin closeout percentages.
Differences between classified Retail Traders and Professional Traders
Professional Traders:
|
FDS ASSETS CLASSES: |
(MAXIMUM LEVERAGE) |
|
|
Forex Major |
500:1 |
|
|
Forex Exotic Pairs |
500:1 |
|
|
Gold |
250:1 |
|
|
Commodities |
200:1 |
|
|
Energy Commodities |
200:1 |
|
|
Major Indices |
200:1 |
|
|
Minor Indices |
200:1 |
|
|
Stocks & Shares |
50:1 |
|
|
Cryptocurrencies |
2:1 |
OTHER FEATURES:
|
Margin close out rule*2 |
15% |
|
Access to contests and other benefits |
Yes |
|
Dedicated Account Manager |
Yes |
|
Multilingual Customer Support |
24/5 |
|
Access to VIP Platinum Education |
Yes |
|
Eligible for ICF compensation |
No |
|
Trading Platform |
Stop out after 1st August |
|
MetaTrader 4 |
15% |
Retail Traders:
|
FDS ASSETS CLASSES: |
(MAXIMUM LEVERAGE) |
|
|
Forex Major |
30:1 |
|
|
Forex Exotic Pairs |
20:1 |
|
|
Gold |
20:1 |
|
|
Commodities |
10:1 |
|
|
Energy Commodities |
10:1 |
|
|
Major Indices |
20:1 |
|
|
Minor Indices |
10:1 |
|
|
Stocks & Shares |
5:1 |
|
|
Cryptocurrencies |
2:1 |
OTHER FEATURES:
|
Margin close out rule*2 |
50% |
|
Access to contests and other benefits |
No |
|
Dedicated Account Manager |
Yes |
|
Multilingual Customer Support |
24/5 |
|
Access to VIP Platinum Education |
No |
|
Eligible for ICF compensation |
Yes |
|
Trading Platform |
Stop out after 1st August |
|
MetaTrader 4 |
50% |
2 Margin Closeout Limits Margin Closeout Limits will be implemented on each account separately while calculating the percentage at which CFD providers are obligated to shut down one or more active CFDs positions.
Risk warning: the higher the leverage, the higher the possible profits but also the losses
*Please note that in order to qualify to convert to an elective professional client, you must meet at least two of the following three criteria:
- You must have carried out transactions in significant size, on the relevant market, at an average frequency of 10 per quarter over the previous one year
- The size of your financial instrument portfolio, defined as including cash deposits and financial instruments should exceed the amount of €500,000
- You should work or have worked in the financial sector for at least one year in a professional position, which requires knowledge in the financial instruments offered by the company
Please take into account that if you are not eligible to become an elective professional client, your account as a retail client will stay open and you will still be able to take advantage of the advanced trading services offered by R1Investing .
Margin demands for positions that became active prior to August 1, 2018 will not be affected. Regarding positions that became active after that date, margin level will be cancelled automatically (starting with the worst performing positions).