Apply for Professional Account Status
Professional Client status is a regulatory classification for those who have the experience, knowledge & financial capacity to understand the risks associated with the investment products and services.
Our Role and Operational Support
The Hugo team is available to assist you with the administrative and technical aspects of your account. We provide general information on the reclassification process, support with the necessary documentation, and training on the technical features of the trading platforms.
As a Professional Client, you continue to receive the dedicated support of our Hugo’s team for platform operation and general product information. However, the decision to request Professional Status and the selection of any trading strategy rests with yourself.
Professional Status: Margin and Risk Profile
The classification as a Professional Client involves a specific risk profile and different trading conditions compared to the Retail category.
Professional Margin Requirements
Professional clients are subject to different margin requirements across asset classes (e.g., 1.5% on FX majors). These rates reflect the higher risk tolerance and market experience assumed for this category.
Leverage Categorisation
Elective Professional clients are not subject to ESMA-mandated leverage caps. While this allows for different position sizing relative to capital, it significantly increases the risk of rapid and total capital loss.
Portfolio Collateral
Professional clients may use certain eligible holdings as collateral for margin trading. It is important to understand that the value of collateral can fluctuate, impacting available margin in real-time.
SaxoTrader PRO
The SaxoTrader PRO desktop platform is available for professional use. It includes advanced features such as depth-of-market, algorithmic ordering, and customizable multi-screen configurations.
Eligibility: Do You Qualify for the Professional Account?
Statutory Requirements
To be eligible for reclassification as an elective Professional Client, regulations require the applicant to meet at least twoof the following three conditions:
Size of Portfolio
Holding a financial instrument portfolio (including cash and investable assets) exceeding €500,000.
Trading Activity
Having carried out transactions of significant volume in the relevant market at an average frequency of 10 transactions per quarter during the previous four quarters.
Professional Experience
Working or having worked for at least one year in the financial sector in a professional position that requires knowledge of the transactions or services envisaged.
Evaluation of Request: Meeting the quantitative criteria does not automatically guarantee reclassification. The entity must evaluate the client’s experience and knowledge to determine if the requested category is appropriate in accordance with applicable regulations.
By electing for Professional Client Status, you voluntarily waive certain protections designed for retail investors. This includes the loss of negative balance protection, meaning you must ensure you have the means to cover any deficit should your account balance fall below zero. Additionally, you will no longer receive standardized risk warnings provided to retail investors.
Hugo Investing provides general information on the administrative process of reclassification. The decision to request this status rests exclusively with yourself, once the regulatory implications have been understood. Our team is available to provide operational support regarding the necessary documentation and general platform information.
Effects of Reclassification and Loss of Protections
| Feature | Retail Client | Professional Client |
|---|---|---|
| Margin Rates | Standard (ESMA Regulated) | Significantly Reduced |
| Negative Balance Protection | Yes | No |
| Leverage Limits | Capped | Flexible / Higher |
| Saxo & Hugo Support | Full Access | Priority Access |
| Best Execution | Guaranteed | Guaranteed |
By electing for Professional Status, you voluntarily waive certain protections designed for retail investors, please understand the following risks:
1. Leverage and Margin Requirements
Professional clients are not subject to the ESMA-mandated leverage limits applicable to retail clients. While this allows for different position sizing, it significantly increases the risk of rapid capital loss.
2. Negative Balance Protection
Unlike retail accounts, professional accounts do not benefit from mandatory negative balance protection. You must ensure you have the means to cover any deficit should your account balance fall below zero.
3. Risk Disclosures and Communications
The entity is entitled to assume that a professional client has the necessary level of experience and knowledge. Consequently, communications may be more technical, and you will not receive the same standardized risk warnings provided to retail investors.
4. Investor Compensation & Redress
Professional clients may lose access to certain investor compensation schemes and the right to bring complaints to specific financial ombudsman services, depending on the jurisdiction.
5. Best Execution and Fund Protection
Certain core protections remain unchanged. Priority remains on Best Execution for your orders, and cash deposits remain protected by the Danish Guarantee Fund up to €100,000.
The Reclassification Process
The transition to Professional Status is a formal regulatory process, not an automated upgrade.
- Request: The client submits their reclassification request.
- Documentary Review: The entity reviews the supporting documentation provided.
- Regulatory Warning: The client receives information regarding the consequences of reclassification and the loss of specific protections.
- Client Confirmation: The client must explicitly confirm that they understand the consequences of their request.
- Decision: The entity evaluates the request and communicates its decision.
Our Role and Available Support
Becoming a professional trader shouldn’t mean trading alone. Whether you want to discuss a complex options strategy or need a walkthrough of the Pro platform’s latest features, the Hugo team is only a phone call or a coffee in Marbella away.
Legal Notice
The information contained on this page is for general and informational purposes only. It does not constitute investment advice, a personalized recommendation, a contractual offer, or a guarantee of reclassification approval. Professional Client status may only be granted following the client’s request and the corresponding evaluation by the competent entity, in accordance with applicable regulations (MiFID II).
