Spreadbet professional account

[Chad Seven]

My spreadbet broker provides a professional account option which is attractive for the lower margin requirements relative to standard retail accounts. I expect other spreadbet brokers have a similar structure.

The criteria to qualify for a professional account is two of a) trade at a reasonable volume, b) have ~500k in assets or c) having traded professionally for an instutution.

I had my account manager call me up for the first time since opening the account in 2007 to inform me I am a "premium client" (which doesn't provide any benefit over a non-premium client apart from some market analysis in my inbox every morning) and I enquired about the possibility of upgrading my account to professional to which she responded that as I only meet criteria a the credit team would be unlikely to approve.

Has anybody managed to talk their broker into upgrading their account without meeting all the criteria and if so how?

 

[BigDeal]

A broker who is FCA regulated will not bend the rules - they would be potentially jeopardising their licence by doing so.

I put my opinions forward at the time of the ESMA consulation in 2018 when the changes were proposed, and although I think some of the decisions went too far, and I understand the frustrations for many, on balance I think the restrictions for retail clients are broadly sensible.

 

[Chad Seven]

A broker who is FCA regulated will not bend the rules - they would be potentially jeopardising their licence by doing so.

I put my opinions forward at the time of the ESMA consulation in 2018 when the changes were proposed, and although I think some of the decisions went too far, and I understand the frustrations for many, on balance I think the restrictions for retail clients are broadly sensible.

Thanks. Looks like I will have to make 500k.

 

[Vinve]

I literally have no qualifications and no savings and I was eligible for a professional account; the check weren't very rigorous. Did the ESMA consultation make it more difficult ?

 

[The Cube]

I literally have no qualifications and no savings and I was eligible for a professional account; the check weren't very rigorous. Did the ESMA consultation make it more difficult ?

Well, if that's the case good luck. Or are you now going to ramp some bucket shop in Outer Mongolia

 

[tomorton]

Also worth being aware that professional clients, on the presumption they have greater financial awareness and risk management abilities, do not receive all of the ordinary client protection features, e.g. negative balance protection.

 

[progressa]

Is this thread still alive? I have some experience of this - went pro account in 2018, same story as above, no qualifications, no savings to speak of, no questions.

 

[progressa]

My spreadbet broker provides a professional account option which is attractive for the lower margin requirements relative to standard retail accounts. I expect other spreadbet brokers have a similar structure.

The criteria to qualify for a professional account is two of a) trade at a reasonable volume, b) have ~500k in assets or c) having traded professionally for an instutution.

I had my account manager call me up for the first time since opening the account in 2007 to inform me I am a "premium client" (which doesn't provide any benefit over a non-premium client apart from some market analysis in my inbox every morning) and I enquired about the possibility of upgrading my account to professional to which she responded that as I only meet criteria a the credit team would be unlikely to approve.

Has anybody managed to talk their broker into upgrading their account without meeting all the criteria and if so how?

Chad, I'd be interested if you managed to do this too