Also known as: Pro Trader, Professional Trader, Elective Professional Client
A professional client is a trader who meets a regulator's tests for experience, portfolio size, and market knowledge and is therefore classified above ordinary retail status. That classification removes standard retail protections — most importantly the leverage cap — in exchange for the trader waiving those safeguards.
Under MiFID II, which the FCA and CySEC apply, an "elective professional" retail trader must satisfy at least two of three tests: an average of 10 significant trades per quarter over the past year, a financial-instrument portfolio (cash plus positions) exceeding EUR 500,000, and at least one year working in a professional finance role. Meeting the bar lets the client trade at leverage well above the 1:30 retail cap.
The commercial appeal is large volume. A professional forex client trading 1:200 or higher opens far bigger positions than a retail client capped at 1:30, so their lot turnover — and the IB's volume rebate — can be several times higher per dollar deposited. This is why professional-client acquisition is a distinct, higher-value funnel for partners.
The trade-off, which you must present honestly, is lost protection: professionals typically forgo negative-balance protection, compensation-scheme eligibility, and the retail-standard risk warnings. Classification is the broker's regulatory decision based on verified evidence, not something a large deposit alone can buy.
A retail client requests professional (or "elective professional") status and submits evidence: brokerage statements showing trade frequency, proof of a portfolio above the threshold, and any relevant employment history. The broker's compliance team assesses the application against the MiFID II tests and, if satisfied, reclassifies the account and confirms in writing that the client loses specific retail protections.
Once reclassified, the platform lifts the retail leverage cap for that account, so the same trader can now open much larger positions. For the IB, nothing about the payout mechanism changes — you still earn spread or commission rebates on volume — but the volume per client rises sharply because leverage is no longer capped at 1:30. The IB's role is to identify eligible traders and help them assemble a correct application, never to coach an unqualified client to overstate experience.
Target experienced, well-capitalised traders who plausibly meet the MiFID II professional tests.
Make clear the client gains higher leverage but waives retail protections like negative-balance cover and compensation eligibility.
Help the client gather statements showing trade frequency, portfolio value above EUR 500,000, and relevant experience.
Compliance verifies the two-of-three tests and, if met, upgrades the account in writing.
The leverage cap lifts, positions grow, and volume-based rebates rise accordingly.
Why it matters for partnership: Professional clients trade far larger volumes at higher leverage, so they generate several times the rebate of a capped retail client. Building a funnel that qualifies genuine pros is one of the highest-value plays for an IB in a regulated market.
An IB for a CySEC-regulated broker like FxPro helps an experienced client with a EUR 700,000 portfolio and 15 trades per quarter document eligibility and upgrade to professional. The client's leverage rises from 1:30 to 1:200, roughly 6x-ing typical position size, and the IB's monthly volume rebate on that single client climbs from about $400 to over $2,000.
| Feature | Retail client | Professional client |
|---|---|---|
| Max forex leverage | 1:30 | Up to 1:200+ (broker set) |
| Negative-balance protection | Yes | Not guaranteed |
| Compensation scheme | Eligible | Often not eligible |
| Qualification | Default | Pass 2 of 3 tests |
| IB volume potential | Lower | Much higher |
Build a dedicated funnel and landing page for experienced, well-capitalised traders that explains the professional upgrade honestly, so you capture genuinely qualifying high-volume leads instead of chasing every large deposit.
Assuming a big deposit qualifies a client as professional — classification requires verified trade history and portfolio evidence, and coaching an unqualified client to overstate it is a compliance breach.
Under MiFID II they must meet at least two of three tests: about 10 significant trades per quarter over the past year, a portfolio above EUR 500,000, and at least a year in a relevant finance role.
No; a big deposit helps toward the portfolio test but the client must also satisfy the experience or employment criteria and provide verified evidence.
They typically waive the retail leverage cap's counterpart safeguards, including negative-balance protection and eligibility for the investor compensation scheme.
Without the 1:30 cap they trade much larger positions, so their volume — and the partner's volume-based rebate — is often several times higher per dollar deposited.
Yes; a client can request retail treatment again to restore the standard protections, and brokers must honour that request.
The MiFID II tests apply across the EU and UK, but thresholds and specifics differ under other regimes like ASIC or the US CFTC, so check the relevant jurisdiction.