eToro operates in a multi-regulatory environment: eToro UK under the FCA, eToro EU under CySEC and eToro Australia under ASIC. Different types of clients are allowed to open an account under EU regulation:
Retail Client and Professional Client
To understand the full legal description of client categorization, visit the eToro regulations page and refer to the “Client Categorization” section
Learn about the differences to find out what is most suitable for you
Quite simply, a Retail Client is a client who is not a Professional Client.
Retail Clients receive access to all our trading assets and can trade both manually or via Copy Trade (subject to suitability). While Retail Clients’ leverage is restricted, they do receive certain protections such as coverage by the Investor Compensation Fund and recourse to the Financial Ombudsman Service. Furthermore, they receive negative balance protection and margin closeout restrictions.
Elective Professionals are those who have successfully passed a test to determine their suitability to qualify as a Professional Client.
Please note that as a Professional Client, you waive certain ESMA protections such as the Investor Compensation Fund and recourse to the Financial Ombudsman Service.
Negative balance protection – On rare occasions in which market conditions cause your Equity to go negative, eToro will absorb the loss and reset your Equity to zero – just like for a Retail Client account.
Leverage – As a Professional you will be allowed to open positions with a leverage of up to 1:400 for certain instruments and will receive a reduction in your current margin rates.
Higher leverage is associated with higher risks – read more here.
Becoming a Professional Client
Only clients who meet certain criteria can opt to change their status from Retail Client to Professional Client. If you wish to read more about Professional Client status before you apply, please refer to this blog post.
To apply, please perform the following steps:
- Click on ‘Apply Now’ below and fill in your personal details
- Check the boxes next to the criteria that apply to you
- Submit your application, and if you meet the criteria, we will be in touch