Compare Brokers For Becoming an Elective Professional

Looking for brokers for becoming an elective professional? We have compared 1 broker accounts (out of 147) that are suitable for you below.

We found 1 broker accounts (out of 147) that are suitable for Becoming an Elective Professional.

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Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.

The Ultimate Guide to

What’s an Elective Professional?

Elective professionals are professional traders who have passed a series of qualitative and quantitative tests proving that they have sufficient trading experience to trade with riskier margin levels.

Since ESMA’s intervention on August 1st 2018 reduced the leverage available to retail traders down to a maximum of 30:1 on major forex pairs and 20:1 on indices, the prospect of becoming an elective professional has increased in popularity as it enables traders to access the same amount of leverage that they previously had access to.

The purpose of ESMA’s ruling was, however, to protect inexperienced retail traders from using high amounts of leverage and taking on more risk than they can handle. As such, it should come as no surprise that not everyone can elect to become a professional trader.

How do I become an elected professional?

Currently, a small number of brokers allow retail traders to apply for an upgrade to elected professional status. Typically, this involves proving to the broker that they have sufficient trading experience and an understanding of the products that they’re trading. This must be validated by a series of qualitative and quantitative tests supplied by the broker.

The brokers listed above are currently some of the few brokers that are offering this service to retail traders.

What is ESMA?

ESMA, or the European Securities and Markets Authority, is an independent EU Authority that safeguards the European Union’s financial systems by protecting investors and promoting good conduct within the financial system.

In January 2018, ESMA implemented the Market in Financial Instruments Directive (MiFID II), which imposed a wide range of additional compliance requirements for brokers to comply with.

Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.