Hantec Markets Limited: Elective Professional Client

Becoming Classified as a Professional Client

The European Securities and Markets Authority (ESMA) have now confirmed that leverage will be restricted on the opening of a position by a retail client. These changes will take effect imminently and will apply to all CFD providers. The table below shows the impact on leverage and margin requirements for retail clients. These changes however will not affect Professional clients.
Instrument Leverage Margin%
Major FX Pairs 30:1 3.33%
Minor FX Pairs 20:1 5%
Major Indices 20:1 5%
Gold 20:1 5%
Minor Indices 10:1 10%
Commodities 10:1 10%
Individual Equities 5:1 20%
Cryptocurrencies 2:1 50%
Other measures include:
  • a standardised 50% margin close out rule on a per account basis
  • negative balance protection on a per account basis

These restrictions will 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. We recommend you always keep your account well-funded. We are therefore informing our clients who may wish to change from retail to professional classification of the process and the protections you will keep and those you will lose.

Please read the following information carefully and then use the form to confirm whether you would like to change the classification of your account with Hantec Markets. Please note if you have multiple accounts with us, all accounts will be changed to reflect your classification.

There will be no change to the tax status of the product or your client money protection and no additional cost to become a professional client.

Criteria to qualify


In order to qualify you must satisfy at least TWO out of the THREE criteria set out below. Please confirm which of the following criteria apply to you.

Name:
Email:
*You may be requested by Hantec Markets to provide evidence of the criteria you have selected. Under the FCA rules we are required to inform you about limitations to the level of protection that such re-categorisation will entail and to seek your written consent to be classified as an Elective Professional Client. By being categorised as an Elective Professional Client you will lose the protections of certain rules which only apply to Retail Clients. In particular you should note that rules relating to the following areas do not apply, or only partially apply to Elective Professional Clients:

Protections You Keep

Segregation of your Money
  • Hantec Markets 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.
Financial Services Compensation Scheme
  • As an individual, you are eligible for FSCS protection on up to £50,000 that you hold with us.
Financial Ombudsman Service
  • As an individual (consumer), you are able to use the Financial Ombudsman Service should you not be satisfied with the outcome of a complaint to us.
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
  • Hantec Markets will not be required to provide you with the current risk warnings we must provide to retail clients or any standardised risk warning that is introduced in future in relation to transactions in complex financial products.
Communications and Financial Promotions
  • Certain FCA (or equivalent) rules relating to the form and content of information provided by Hantec Markets do not apply, including those relating to communications and financial promotions.
Negative Balance Protection
  • Retail clients will benefit from negative balance protection being introduced in the near future. However, this functionality will not be available to professional clients.
Leverage Restrictions
  • Hantec Markets will soon be required to restrict leverage to between 30:1 and 2:1 on the products we offer to retail clients. Higher leverage can work against investors and amplify losses.
Best Execution
  • We are not obliged to determine the best possible result in terms execution, or where there is more than one competing venue to execute an order, we do not have to consider our own commissions and costs relating to each of the eligible execution venues when assessing which to use in order to provide best execution. However, we will continue consider both of these factors. For further details please refer to our Execution Policy.
It should be noted that you have the right to request a different client classification and you are responsible for keeping Hantec Markets informed about any change that could affect your categorisation as an Elective Professional Client.
In the event of any inconsistency between the English and Chinese versions, the English version shall prevail.