How to apply for a Professional Account on eToro?
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Compared to Retail accounts, Professional accounts on eToro offer traders more outstanding advantages than higher leverage (1:400). To change your status from Retail client to Professional client, you will need to meet some basic requirements. This article will provide you necessary criteria and a short guide to become a Professional client on eToro.
Required criteria for Professional Accounts
To qualify as a professional trader, you need to pass a test that determines the suitability of the trader and whether you are eligible for this type of account or not.
Some certain criteria were requested, namely:
- Financial Portfolio: your financial portfolio should exceed $500,000 and does not include property or cash.
- Large Trade Volume: you must have made at least 10 forex transactions with a minimum total value of $500,000 in a recent time period.
- Professional Experience: you must have at least one year of working experience within the financial sector.
Only those who satisfy at least two of the three qualifying requirements can change their status from Retail Client to Professional Client.
Steps to apply for a Professional Account on eToro
To apply, please perform the following steps:
1. Go to the professional account registration page HERE
2. Click on the “Start” and complete the form by ticking the boxes next to the criteria that apply to you.
3. Submit your application by clicking on “I confirm.”
When successfully transferred to professional clients, they can gain access to higher leverage (1:400) than retail clients, enabling them to open much larger positions. In turn, higher leverage will reduce margin rates in instances where leverage is applied to financial instruments.
In addition, on rare occasions in which market conditions cause a negative balance on the trading account of Professional clients, eToro will absorb the loss and reset their equity to zero – like for Retail client accounts.
Professional clients, however, waive certain ESMA protections such as the Investor Compensation Fund and recourse to the Financial Ombudsman Service. And they should always acknowledge the risks associated with the higher leverage so that they adequately apply risk management protocols to prevent substantial loss of initial capital.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.