Professional Client

FAQ

1. What criteria must be met to obtain professional client status upon request?

To qualify as a professional client, you must meet at least two of the following three conditions:

1. Professional experience: You must have at least one year’s professional experience in the financial sector in a role requiring knowledge of transactions in financial instruments or brokerage services. 
2. Transaction value: Having entered into transactions of a significant value amounting to at least: 

• EUR 13,000 (in words: thirteen thousand euros) – where the underlying instrument of the transaction was commodities other than gold;
• EUR 40,000 (in words: forty thousand euros) – where the underlying instrument of the transaction was gold; 
• EUR 37,000 (in words: thirty-seven thousand euros) – where the underlying instrument of the transaction was currency pairs;
• EUR 79,000 (in words: seventy-nine thousand euros) – where the underlying instrument of the transaction was an index;
• EUR 4,000 (in words: four thousand euros) – where the underlying instrument of the transaction was other assets not specified above, 
  each on the relevant market, with an average frequency of at least 10 transactions per quarter over the last four quarters;

3. Portfolio value: Holding a portfolio of financial instruments with a value exceeding the equivalent of 500,000 EUR. This portfolio may include, amongst other things, shares, bonds, investment funds and cash.

The client may complete and submit an application to OANDA TMS Brokers, together with the necessary supporting documents.

2. A Professional Client by operation of law

Who is eligible to apply for Professional Client status under the Act: 

Entities listed in the Professional Clients catalogue: 
The client must demonstrate that they meet the requirements for reclassification as a Professional Client (e.g. by carrying out the relevant business activity or by being entered in the register of regulated activities).

The applicant must not be a consumer or a natural person operating a sole trader business. 

Required documents: The client may complete and submit an application to OANDA TMS Brokers, together with the necessary supporting documents. 

Institutional investor: 
Carrying out business activities as required by the Act.

This may be confirmed by an entry of the relevant PKD code in the commercial register, subject to the proviso that the PKD code disclosed in the register is not the sole criterion for a change in classification. 

Required documents: The client may complete and submit the application to OANDA TMS Brokers, together with the necessary attachments. 

An entity meeting specific capital and revenue requirements 

The applicant should demonstrate that they meet at least two of the three capital and revenue conditions (e.g. by submitting approved financial statements). 

Required documents: The client may complete and submit an application to OANDA TMS Brokers, together with the necessary supporting documents.

3. How long does it take to process an application for professional client status?

This is usually a standard procedure, which can take anywhere from a few to a dozen or so working days, depending on how complete the documents provided are.

4. What are the benefits of having professional client status?

By achieving Professional Client status, you gain access to higher leverage of up to 1:200. 

What sets us apart is our transparent model for reimbursing transaction costs. We guarantee clear rules: the higher your trading volume, the higher your Cashback, which reduces your actual costs with every threshold reached. Furthermore, every Professional Client can count on direct support from a dedicated broker.

5. What documents serve as proof of professional experience?

To confirm that the criteria have been met, OANDA TMS Brokers may require the submission of relevant documents, such as:

• Professional experience: A certificate of employment, an employment contract or another document confirming employment in the required role.
• Transaction and portfolio value: Brokerage account statements (including those from other financial institutions) confirming the relevant transaction volume or portfolio value. 

You must complete and submit a special application for a change of classification to the broker.

6. What safeguards are in place for professional clients?

As a professional client, you are covered by fundamental capital protection mechanisms:

• Compensation scheme: OANDA TMS Brokers, as an entity regulated by the Polish Financial Supervision Authority (KNF), participates in the compensation scheme operated by the National Depository for Securities (KDPW). This scheme protects clients’ funds in the event of the brokerage firm’s insolvency or bankruptcy.
• Segregated bank accounts: Clients’ funds (the full value of the account) are held in separate, segregated bank accounts. This means they are kept separate from the broker’s operating funds, which enhances their security.

What protection mechanisms do not apply to clients with professional client status:

• No protection against a negative balance: a professional client is responsible for covering any debit on their account, which may exceed the value of their deposit.

7. How does the process of changing a customer’s status work?

The process of changing your status to that of a Professional Client is straightforward and consists of three simple steps:

1. Submitting an application: If you are sure you meet the required criteria, please contact us at info.eu@oanda.com to receive and complete the form. 
2. Document review: Our team will verify your application and the supporting documents you have provided to confirm that you meet the criteria. 
3. Status activation: Once your application has been approved, we will update your profile. From that point onwards, you will automatically gain access to all the benefits of Professional Client status – including higher leverage and the Cashback programme.

8. Leverage for Professional Clients

Professional clients have access to significantly higher leverage than retail clients. The maximum levels are 200:1 for the Forex market and CFDs based on major stock market indices. For CFDs on commodities (including gold and silver), the maximum leverage is 100:1, and for CFDs on shares, it is 5:1.

9. How is cashback (commission refund) calculated for Professional Clients?

Our Cashback programme rewards activity within a calendar month. When your monthly trading volume reaches a specified threshold (e.g. USD 50 million), you will receive a refund of part of the commission. The higher the threshold you reach, the greater the percentage we refund to your account (up to 45%).