Professional Trading

The European Securities and Markets Authority (ESMA) released its decision for implementing intervention measures for more tiered leverage for different instruments to retail investors which are now in effect and apply to all spread betting and CFD providers.

The table below illustrates the differences in available leverage and required margin between retail and professional accounts

Product category Professional account (Max. Leverage) Retail account (Max. Leverage) Additional margin required on a retail account
Major indices 500:1 20:1 25x
Major currencies 500:1 30:1 17x
Gold 200:1 20:1 10x
Commodities 133:1 10:1 12x
Shares 33:1 5:1 7x

Professional Clients Leverage Information

We are aware that some clients may wish to apply to upgrade from retail to professional.

Please read the information below carefully and if you think that you qualify as a Professional trader then follow the link provided in order to begin the application process if you wish

The European Securities and Markets Authority (ESMA) announced its decision to implement intervention measures which include restricting leverage available to retail clients to between 30:1 and 2:1, according to the volatility of the underlying asset traded. These changes were implemented on 1st of August 2018.

These restrictions do not apply to professional clients. While lower margin rates will be available to professional clients, it is important to note the risks associated with this.

Protections you keep

Segregation of your money

London Capital Group Limited (hereinafter as “LCG UK”) and London Capital Group (Cyprus) Limited (hereinafter as “LCG CY”) will hold and maintain an amount equal to your account value for each account you hold with us in a segregated client money bank account unless both parties agree to Title Transfer of funds under separate documentation

Financial Services Compensation Scheme/ Investor Compensation Fund

As an individual, you are eligible for FSCS protection on up to £50,000 that you hold with us if you are registered under LCG UK.

Your investment is covered by the Investors Compensation Fund which covers eligible investments up to €20,000 per person, per firm, if you are registered under LCG CY.

Financial Ombudsman Service

As an individual (consumer) and client of LCG UK, you may be able to use the FOS should you not be satisfied with the outcome of a complaint to us.

If you do not feel your complaint has been resolved satisfactorily, you are able to refer your complaint to the The Financial Ombudsman of the Republic of Cyprus, if you are registered under LCG CY

Right to request a different categorisation

You retain the right to request a different categorisation at any time, for example if you wish to be afforded a higher level of regulatory protection.

Protections you lose

Risk warnings

LCG UK and LCG CY are not required to provide you with the current risk warnings we must provide to retail clients or any standardized risk warning that is introduced in future in relation to transactions in complex financial products.

Leverage restrictions

LCG UK and LCG CY are required to restrict leverage to between 30:1 and 5:1 on the products we offer to retail clients. Higher leverage available to professional clients can work against investors and losses can exceed deposits.

Negative balance protection

Retail clients benefit from negative balance protection that has been introduced by ESMA. This requirement is already available for all retail clients registered under LCG CY. However, this functionality will not be available to professional clients whose accounts may fall into deficit.

Conduct of Business

Some Conduct of Business rules such a client communications and order execution may differ from those provided to retail clients.Professional clients are also expected to have an assumed level of understanding

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.