What is Pepperstone Pro?
In Australia, clients are categorised as either retail or wholesale clients under the Corporations Act 2001 (Cth).
There are a few different ways wholesale clients are assessed but we use the term ‘Pepperstone Pro’ for clients who meet any of the tests and are approved.
ASIC has announced changes restricting a number of aspects of how retail clients are able to trade CFDs and FX in Australia. These changes are due to come into effect from 29 March 2021. If you are approved and classified as a Pepperstone Pro, those changes will not impact you.
It's important to note that you will lose some retail-only protections if you become Pepperstone Pro, so you do need to consider this in your decision.
Am I eligible to become a Pepperstone Pro?
There are two main ways you may be eligible for Pepperstone Pro status.
|Option 1: Wealth test*||
An eligible client is someone who:
If you’re eligible, it’s easy:
1. Log into your secure client area.
2. Select Register as a wholesale client in the top right-hand side of the screen. You’ll be asked to submit proof of eligibility as certified by your accountant.
|Option 2: Sophisticated Investor test^||
An eligible client is someone who we believe has previous experience that allows them to assess:
At a minimum you'll need to meet the following requirements:
- an annual income of at least AUD$100,000
- or assets of at least AUD$500,000
- you’ve traded leveraged FX or CFDs 20 times per quarter for at least 4 quarters in the preceding 2 years with a notional value of AUD$50,000 or more
- you work or have worked in the financial sector for at least one year in a professional position which requires knowledge of leveraged trading (or FX or CFDs)
If you’re eligible, it’s easy:
1. Contact you account manager to confirm your Income or Assets.
2. Provide evidence of your work experience or your trading if you have not done the minimum requirements with Pepperstone.
3. Complete and return the Sophisticated Investor Acknowledgement form.
|Even if you meet these requirements, in some circumstances, we may still choose to not grant you Pepperstone Pro status.
* Clients that qualify as being treated as wholesale clients pursuant to section 761G(7)(c) of the Corporations Act 2001.
^ Clients that qualify as and agree to being treated as wholesale clients pursuant to section 761GA of the Corporations Act 2001.
Maintain access to higher leverage
You can continue to trade at your current leverage levels, including up to 500:1 for most FX products.
Margin close-out level at 20%
You'll keep your margin close-out level at 20% (versus the 50% currently being considered by the ASIC recommended reforms).
Smart Trader Tools
You get access Smart Trader Tools package which includes 28 indicators and expert advisors for MT4 and MT5, designed to help you manage your risk and take your trading to the next level.
You get access to your own personal account manager and VIP access and offers to enhance your trading experience.
Negative balance protection
You may be eligible for negative balance protection up to AUD$100,000.
We'll continue to fully segregate your client money in accordance with the client money provisions of the Corporations Act.
What do I lose if I become a Pepperstone Pro?
While it’ll still be available on our website, you’ll no longer be given the disclosure that’s offered to retail clients. ASIC have proposed restrictions as part of their product intervention consultation. These restrictions will be implemented on 29 March 2021, but as a Pepperstone Pro, they won’t apply to you:
- lower leverage implemented;
- compulsory margin close-out at 50%;
- access to the proposed negative balance protection.
We’re not required under the Corporations Act to provide wholesale clients with access to our Internal Dispute Resolution process but we’ll still make this service available to you at no cost.
While you can still access the external dispute resolution provider Australian Financial Complaints Authority (‘AFCA’), you may be treated differently given your status as an experienced wholesale investor and your matter may be excluded at AFCA’s discretion.
The risks and other important information are detailed in the Wholesale Client Information Statement.
Do I have to become a Pepperstone Pro if I meet the minimum requirements?
No. It’s up to you to decide if this option is what you want. You can also request to be re-categorised as a retail client at any time. This is particularly important to remember if your circumstances change.
How do I find out more?
If you want to know more about what it means to be Pepperstone Pro, please feel free to contact us at firstname.lastname@example.org or call 1300 033 375.