Since the announcement from European regulator (ESMA) on restricting retail clients to trade at current leverage levels, brokerages are upgrading their product offering to bypass the regulation. FCA regulated CMC Markets (LON: CMCX) has announced that it will allow its eligible existing and new clients the opportunity to switch to its new CMC Pro account.
CMC Pro accounts allow professional clients to continue trade at their current leverage limits thus allowing retail clients to bypass the regulations. The CMC Pro accounts will have their own account manager, priority access to latest products and also eligible for rebates and rewards. It will also provide clients with an opportunity for networking at the CMC Pro client events featuring guest speakers and charting analysis.
For retail clients migrating to Pro accounts, they have to meet two of the following conditions.
- They have carried or completed transactions of a significant size on a relevant market (10 per quarter over the previous four quarters)
- Their financial instrument portfolio should exceed the value of €500,000
- Have experience in working or have worked in the financial sector for at least one year in a relevant professional position
David Fineberg, Group Commercial Director at CMC Markets, commented on the development:
“Over the last 10 year,s we have seen tremendous changes in our industry, driven by technology and social media. It is right that regulators are now looking to protect less experienced and potentially vulnerable clients. At CMC Markets we already cater for a professional client base, and we are continuously looking to innovate our service and offer ways to empower our clients and provide a premium experience.”
“We are seeing a change in consumer behaviour as clients are now demanding a personal, tailored service to suit their individual needs. We will continue to invest in our Next Generation trading platform to meet the requirements of our CMC Pro clients.”