Can You Become a Pro Trader?
The European Securities and Markets Authority (ESMA) has recently imposed new limitations on CFD trading. As UFX strictly adheres to ESMA and CySec regulations, trading on our platform is done according to these new conditions. If you are a veteran trader who wishes to keep trading under the previous conditions, or if you wish to start trading at our platform under the same conditions, you can apply for a professional account.
What does a professional account offer in light of the new limitations?
The major update is the limitation on leverage rates. ESMA has set leverage limits that, while lowering potential losses, also limit potential profits.
The following table highlights major differences between the leverage rates available to regular (“Retail”) accounts and those available to Professional Traders:
|Asset||RETAIL ACCOUNT LEVERAGE||PROFESSIONAL ACCOUNT LEVERAGE|
|Major Currency Pairs||1:30||1:400|
Let’s take a closer look at the currency pairs example:
With a retail account and a $1,000 balance, you can open a 25,000 EUR/USD position and earn $2.5 for each pip. A 10 pips movement on the EUR/USD will result in a profit or loss of $25.
On the other hand, with a Professional account and a $1,000 balance, you can open a 340,000 EUR/USD position and earn $34 for each pip. A 10 pips movement on the EUR/USD will result in a profit or loss of $340. With higher leverages, a professional account provides you with greater potential profits, but also with greater potential losses.
What other benefits do I get from switching to a professional account?
A UFX Professional account provides you with access to the MetaTrader 4 platform, with which you can take your trading to the next level. It also provides you with highly advanced market analysis tools and automated trading features in addition to VIP support services.
So, how do I switch to a Professional account?
First, we need to check your eligibility to trade with a Professional account. Please click on the button below to start the application process.
Elective Professional Account Eligibility Test Q&A
The first step in qualifying for a Professional Account is demonstrating trading knowledge. Please answer the following questions: