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 both trade manually or 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.
Opt-Up to become a Professional Client
Elective Professionals are those who have successfully passed a test to determine their suitability to qualify as Professional Clients.
Please note that Professional Clients waive certain ESMA protections such as the Investor Compensation Fund and recourse to the Financial Ombudsman Service. Professional clients are allowed to trade within leverage restrictions applicable to this type of client.
Negative balance protection – Although not required by law, in the rare occasion in which market conditions cause your account’s balance to go negative, eToro will absorb the loss and balance your account – just like for a Retail Client account.
High leverage trading – As an Elective Professional you will be allowed to open positions with a leverage of up to 1:400 for certain instruments and receive a reduction in your current margin rates, allowing you to trade with more leverage, as opposed to the limitations imposed by ESMA on retail clients.
Higher leverage is associated with higher risks – read more here.
Becoming a Professional Client
Only clients who meet certain criteria can Opt-Up their status from Retail Clients and become Professional Clients on eToro. 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