Spread Betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 56.7% of retail investor accounts lose money when trading Spread Betting and CFDs with this provider. You should consider whether you understand how Spread Betting and CFDs work and whether you can afford to take the high risk of losing your money
An individual who has the knowledge and experience to make his or her own investment decisions, and understands the risks involved, with greater independence than retail clients, are deemed as a professional client.
As a professional client you will have access to our markets at significantly reduced margin rates. If we take the NDQ100 as an example, the margin rate for a retail client is 5%, compared to 0.50% as a professional client.
For more information on our margin rates please click here.
As a professional client you will waive certain FCA protections, such as:
Funds held on your behalf may not be subject to the protections conferred by the client money rules under title transfer of collateral agreements. Consequently, these funds will not be segregated from the firm’s own funds, and you will rank only as a general creditor of the firm in the event of its liquidation.
Negative Balance Protection
You will not have an overall guaranteed limit on the losses you can make on your account. This means your losses can exceed the amount deposited. If your account reaches a negative balance, you will be obligated to make immediate payment to Spread Co Ltd to resolve the negative balance and settle any outstanding deficit.
Leverage and Automatic Close-Out
More leverage will be available to you than is offered to Retail Clients. We may not be obligated to automatically close out your positions where margin falls below 50% of the amount required, as we are with Retail Clients.
In certain circumstances our provision of best execution may not prioritise price and cost over other execution factors, such as the likelihood of execution.
We are not required to provide you with full details of our arrangements in relation to margin ahead of conducting a transaction with or for you. In particular you may not receive advance notice of the following:
(a) the circumstances in which you may be required to provide margin;
(b) the form in which the margin may be required; or
(c) the steps we may be required or entitled to take if you fail to provide the required margin.
Financial Ombudsman Service
You may not be entitled to refer complaints you may make against Spread Co Limited to the Financial Ombudsman Service if you are dissatisfied with the way in which we have dealt with it.
How do I apply to become a professional client?
You can apply to be categorised as a professional client by contacting our client services team at firstname.lastname@example.org.
You will need to meet certain criteria, to qualify as a professional client.
Criteria for a professional account
To qualify as a professional client, you will need to satisfy two out of the below three criteria:
Can I change my categorisation if I change my mind?
Yes, you will need to contact our client services team if you no longer want to be classified as a professional client.
What proof will I need to provide?
You will need to provide banks statements and/or a ledger from your portfolio amounting to €500,000.
Which instruments are accepted as part of my financial portfolio?
Acceptable instruments include:
To meet the trading experience criteria, you can use trades made with Spread Co as evidence. If trades made with Spread Co do not satisfy the criteria, we will ask for an account ledger not done with Spread Co, showing the relevant trades of the required notional value.
To satisfy the professional experience criteria, we will need a thorough description along with evidence of professional experience, explaining your role and how it is relevant to derivatives.
Can I apply for a professional client status with a corporate account?
Yes, however, please bear in mind that if you’re applying based on trading experience or your portfolio, all evidence will need to be provided I the company’s name. The professional experience criteria will need to be based on each individual.
Can I apply for a professional client status with a joint account?
Yes, however, please bear in mind each account holder will need to satisfy the criteria.
With our platforms you can trade wherever you are – at home, in the office, or when you’re out and about.
Some companies will charge you to hold a short index position. At Spread Co we won’t.
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