Key points
- You get fewer protections than a Retail Client.
- We will usually collect less information about your knowledge and experience. Warnings that a product may not be appropriate are less likely.
- Explanations may be more technical. We may contact you less frequently.
Product information
- PRIIPs Key Information Documents (KIDs) are not required for Professional Clients. You may not receive a KID for packaged products.
Order handling and reporting
We do not have to tell you quickly if there is difficulty with carrying out your order. We must do this for Retail Clients.
Trade confirmation timing rules are less strict than for Retail Clients.
Best execution
For Retail Clients, the key factor is total cost (price plus fees). For Professional Clients, we may give more weight to other factors. These include speed and likelihood of execution.
CFDs and other restricted speculative investments
Some protections will not apply to you. These include:
- leverage limits on opening positions;
- automatic close‑out when margin falls to 50% of the minimum required;
- negative balance protection (which stops Retail Clients from losing more than the money in their account);
- restrictions on incentive offers; and
- the standard retail risk warning.
So if you trade leveraged products, you can lose more than the cash in your account. Losses can grow quickly. Positions may not be closed automatically at the 50% level.
Compensation
IBUK is a member of the FSCS. Whether you are covered depends on the claim and your situation. FSCS does not cover poor investment performance.