Jump to content

Does using expert advisor qualfy for professional status on an account


Recommended Posts

4 minutes ago, michael20 said:

If I trade my MT4 account using an EA, does my MT4 account qualify for professional status?

 

Use of EA's do not qualify you for professional status. Please visit https://www.ig.com/uk/professional-trader for more information on professional status, especially the FAQ's which state...

 

What are the eligibility requirements to becoming a professional trader?

To qualify, you must answer ‘yes’ to two or more of the following: 

  • Has your trading averaged 10 significantly sized transactions in leveraged derivatives per quarter over the last 4 quarters?
  • Do you have a financial instrument portfolio, including cash deposits, exceeding €500,000?
  • Have you worked in the financial sector in a professional position, requiring knowledge of derivatives trading, for at least a year?

The MT4 itself can be used by professional account holders once the above criteria have been approved and you've had a successful application... 

Link to comment
9 minutes ago, michael20 said:

Please therefore give an example of  the  first requirement of 10 significanty sized transactions in averaged derivatives per quarter. What is defined as significant?

£50k notional on everything except equities, which is £10k. So 10 x £50k notional a month for 4 months, or about 40 in the year if they are a little more spread out.

  • Like 1
Link to comment
6 minutes ago, TrendFollower said:

@michael20, no. 

@JamesIG, I understand the third bullet point as a criteria. What amuses me are the first two.

What if someone traded 10 significantly sized transactions in leveraged derivatives per quarter over the past four quarters are made losses on every single one of those transactions? Surely that cannot be accepted as an eligibility requirement to become a professional trader?

If someone is wealthy or has won the lottery / premium bonds and invests say €500,000 or more but has no knowledge or experience in trading or investing. Then surely this cannot be construed as someone who is a professional trader. They may just have large cash deposits due to large win. They may have asked a private banker / investment banker or wealth advisor to invest and manage their money. They cannot be a professional trader. 

 

I understand this reasoning, however we are purely going by the universal standard as set out by ESMA regulation. 

  • Like 1
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,028
    • Total Posts
      88,036
    • Total Members
      69,021
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Trev14
    Joined 28/09/22 16:23
  • Posts

    • In this week’s Trading the Trend, Axel Rudolph FSTA looks at the downward trend of the German DAX, going short on the bounce to 12,300, with a stop-loss at 12,940 and a long-term downside target of 11,500. ig        
    • BRITISH POUND TALKING POINTS: GBP/USD was in a difficult spot earlier in September and the problem has continued to devolve. It’s a negative feedback type situation around the UK and the British Pound with a collapsing currency leading to surging bond yields which led to a BoE intervention effort that’s led to more currency collapse. It’s a painful feedback loop that hasn’t yet stopped. Is there hope on the horizon? And is this a problem that will be relegated to the UK, as it has similar hues to problems being seen in Europe and the United States. The current backdrop is messy as bonds and FX are screaming panic and meanwhile, US equities look relatively calm. I discussed this at-length in yesterday’s webinar. The British Pound collapsed last week, or so we thought, only to open our platforms this week to see what a collapse in a major currency actually looked like. GBP/USD has set a fresh all-time-low and perhaps more disturbingly, in the days since, price hasn’t really rebounded much. Sellers are still hitting the pair and now there’s other dislocations that are taking place.   The UK is faced with a similar problem as Europe and the US with extreme inflation. All three Central Banks were rather calm as inflation built through much of last year but this year, as inflation continued to run-higher even after initial tightening efforts, worry started to show given that central bank efforts were not only unsuccessful but also appearing to bring on even more problems. Full article and technical analysis: Sep 28, 2022 | James Stanley, Senior Strategist | DailyFX
    • What market data to trade on Thursday: EUR/USD, NXT, MU & NKE The downward trend for the Dax is expected to continue on Thursday with the upside risk to German inflation data. IGTV’s Jeremy Naylor looks at EUR/USD. Earnings out on Thursday include Next (NXT), Micron Tech (MU) and Nike (NKE).        
×
×
  • Create New...