Professional vs Non-professional status

[Big_P]

Hi all,

I have been developing a trade automation with a programmer which was giving some pretty good results when backtested. I took the automation live a few weeks back and I've hit a snag.

The automation takes roughly an equal number of longs as short trades. But my short trades are often being rejected, as shares without a "KIID" (Key Investor Information Document) are not allowed to be short-traded by traders with a non-professional status.

My broker (Interactive Brokers) ask me to declare Professional / Non-professional status according to a checklist. I am very clearly a non-professional according to their criteria and I get cheaper exchange fees as a result.

I'm curious - do those of you who are retail traders on this forum (and trade stocks) have the same issue? Would there be an issue to declare Professional Status even though on paper, I am not?

What do you guys do?

Many thanks,

Big P

 

[BigDeal]

If you deal with a regulated entity, you will not be able to register as professional when you don't meet the criteria unfortunately

 

[MrMosquito]

Hi all,

I have been developing a trade automation with a programmer which was giving some pretty good results when backtested. I took the automation live a few weeks back and I've hit a snag.

The automation takes roughly an equal number of longs as short trades. But my short trades are often being rejected, as shares without a "KIID" (Key Investor Information Document) are not allowed to be short-traded by traders with a non-professional status.

My broker (Interactive Brokers) ask me to declare Professional / Non-professional status according to a checklist. I am very clearly a non-professional according to their criteria and I get cheaper exchange fees as a result.

I'm curious - do those of you who are retail traders on this forum (and trade stocks) have the same issue? Would there be an issue to declare Professional Status even though on paper, I am not?

What do you guys do?

Many thanks,

Big P

trading is always a dynamic wold, you should not expect the situation to be the same for a long while.

 

[tomorton]

Registering as a professional client does not mean you have to be an employee or even self-employed. It's a way for clients with high levels of capital to trade at higher levels of leverage than ESMA regulations permit for ordinary private retail clients. The downside is that professional clients sign away much of the strong regulatory protections that other clients get.

Different brokers may have different registration criteria in order to be categorised as a professional client. When I last checked this a few years back my broker wanted a deposited amount in the account of at least £500,000.