For market data subscription I am continuing to be a non-professional user.
PRIIPS KID on IB
- Thread starter d08
- Start date
"Starting August 1, 2018 an additional spread of 1% will be added to the rates below for clients classified as retail clients under MIFID."
https://www.interactivebrokers.com/en/index.php?f=1595&p=cfds1
https://www.interactivebrokers.com/en/index.php?f=1595&p=cfds1
did you actually get yours approved? i've send them in, but have been waiting for ages.
edit: never mind, i see yours were approved
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Had to fill the form about professional/non professional market data recently through account management, it clearly asks whether one is considered professional by any exchange worldwide, implying imo if that's the case one would need to pay professional market data.
Geissbock or anyone else who got professional status related to Europe, did you renew your market data non professional form yet ? Did that change anything to your market data costs ?
Geissbock or anyone else who got professional status related to Europe, did you renew your market data non professional form yet ? Did that change anything to your market data costs ?
Market data rates are determined differently and are not connected to MiFiD status. Especially since one of the possible MiFID requirements is that one has worked in the financial sector as a professional for some time in the past, irrelevant of current employment.
Thanks, that's what I understood first, but no longer sure. Do you still answer as NO when asked whether you are considered in any market as professional or YES, which seems more honest, than ask IB to keep you at non pro rates, which might not work ?
I'm still waiting to see consequences on those applying for the professional status, as I don't need ETFs asap but sure wouldn't mind having a fuller access to listed products.
Btw as a EU citizen based outside Europe, with non european brokers I noticed no issue, but all non European ETFs seem out of reach through IB.
I'm still waiting to see consequences on those applying for the professional status, as I don't need ETFs asap but sure wouldn't mind having a fuller access to listed products.
Btw as a EU citizen based outside Europe, with non european brokers I noticed no issue, but all non European ETFs seem out of reach through IB.
Hi all,
I haven't seen it mentioned in this thread but it might be relevant to some:
There are actually not just one but two ways a client can become categorized as 'Professional' under the current MiFID regulation.
The first possibility is the way that most are already familiar with and is widely discussed on forums is 'Professional client by request' which means one has to fulfill two of the following three criterias:
- the Client has carried out transactions, of significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters;
- the size of the Client's financial instrument portfolio, defined as including cash deposits and financial instruments exceeds 500’000 Euro;
- the Client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.
The other one is 'Professional client by Financial Authority Regulation'.
These are individuals or entities authorised or regulated by either an EU member state or by a non member State. So if the client has a registration number with any relevant government financial authority it automatically makes the client categorized as a Professional client without having to fulfill any further criterias.
The reason I know this is I myself am an EU resident working as an Investment Advisor which made me automatically qualify as a Professional client under MiFID.
As an advisor I also have EU resident clients who couldn't fulfill the criterias to become 'Professional clients by request' but still wanted to be able to trade US equities. I have simply arranged for them to receive a registration number from the same financial authority I am regulated by and they all became categorized as Professional clients.
Nice writeups covering the MiFID client categorization regulation can be found with a simple google search for example here:
https://www.fxdd.com/fileadmin/user_upload/pdfs/mt/en/MIFID_CLIENT_CATEGORISATION.pdf
I haven't seen it mentioned in this thread but it might be relevant to some:
There are actually not just one but two ways a client can become categorized as 'Professional' under the current MiFID regulation.
The first possibility is the way that most are already familiar with and is widely discussed on forums is 'Professional client by request' which means one has to fulfill two of the following three criterias:
- the Client has carried out transactions, of significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters;
- the size of the Client's financial instrument portfolio, defined as including cash deposits and financial instruments exceeds 500’000 Euro;
- the Client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.
The other one is 'Professional client by Financial Authority Regulation'.
These are individuals or entities authorised or regulated by either an EU member state or by a non member State. So if the client has a registration number with any relevant government financial authority it automatically makes the client categorized as a Professional client without having to fulfill any further criterias.
The reason I know this is I myself am an EU resident working as an Investment Advisor which made me automatically qualify as a Professional client under MiFID.
As an advisor I also have EU resident clients who couldn't fulfill the criterias to become 'Professional clients by request' but still wanted to be able to trade US equities. I have simply arranged for them to receive a registration number from the same financial authority I am regulated by and they all became categorized as Professional clients.
Nice writeups covering the MiFID client categorization regulation can be found with a simple google search for example here:
https://www.fxdd.com/fileadmin/user_upload/pdfs/mt/en/MIFID_CLIENT_CATEGORISATION.pdf
Not if you are categorized according to what is referred above as "the first possibility." The second I believe the answer is yes.