Frequently asked questions
Why is leverage being limited?
In March 2018, ESMA, the European Securities and Markets Authority, announced that they will be restricting leverage to a maximum of 30:1 in an attempt to strengthen financial trading and protect retail traders from high risk. These limitations do not apply for ThinkMarkets professional trading accounts or other accounts onboarded under the Australian entity of ThinkMarkets.
When does the new regulation come into effect?
The new regulation comes into effect on 1st August on 2018.
I am not eligible. What now?
If you don’t satisfy the EPC requirements, you can continue using your ThinkMarkets account as a retail client and the relevant leverage restrictions will apply. We will notify you once the changes come into effect. The ESMA rules apply to brokers based in the EU. Clients trading with brokers based outside the EU are exempt from the changes. For more information, please contact our customer service team.
What is included in a “financial instrument portfolio”?
A financial instrument portfolio includes cash deposits, savings, shares, options and fund investments. Please note that property portfolios are not included.
How much experience do I need in the financial sector in order to qualify?
You work or have worked in the financial sector for at least 12 months in a position that requires knowledge of CFDs and/or spread betting transactions.
Are there any tax implications?
No changes apply to the tax status of the products we provide to our clients.
Do I have to provide proof of meeting the criteria?
In accordance with the FCA regulations, elective professional account holders might be required to provide proof of meeting the criteria.
What protections does the elective professional trader lose?
Elective professional traders are not protected by negative balance protection and therefore may lose more than they deposit. ThinkMarkets will assume that an EPC client has a certain level of knowledge of the financial markets and we can therefore use sophisticated language in our communications.