converted from a retail to a wholesale client | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

z-score converted from Tradingview to MT5 1 reply

v509 gone with the wind - MT4 indicators converted 16 replies

4HR Fib EMA's Converted to 5M Chart - Thoughts? 0 replies

Can this EA be converted for live trading 0 replies

Attachments: converted from a retail to a wholesale client
Exit Attachments

converted from a retail to a wholesale client

  • #1
  • First Post: Aug 19, 2020 7:57am Aug 19, 2020 7:57am
I just received an email from my broker saying that my account has been converted from a retail to a wholesale client.

I have read some material on it but I still don't get it.

Can someone who has experienced this shed some light on the meaning, purpose and the effects of such a conversion if any?

Thanks
  • #2
  • Aug 19, 2020 8:14am Aug 19, 2020 8:14am
Explain the context, is it a UK FCA regulated broker.

Are you a professional client?
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 17.5%
  • #3
  • Aug 19, 2020 8:22am Aug 19, 2020 8:22am
Quoting OutThere
I just received an email from my broker saying that my account has been converted from a retail to a wholesale client. I have read some material on it but I still don't get it. Can someone who has experienced this shed some light on the meaning, purpose and the effects of such a conversion if any? Thanks
name also broker, please, thank you.
  • #4
  • Edited 3:07pm Aug 19, 2020 8:26am | Edited 3:07pm
Quoting Phil_GMT
Explain the context, is it a UK FCA regulated broker. Are you a professional client?

I don't know if that has anything to do with what broker I'm with. I think no matter what jurisdiction /broker you are in, you can get converted.

No, I don't consider myself a professional client. I never applied or claimed to be one and the funds I trade are my own and relatively small. I have traded accounts several times bigger than I do now.

I just want to know if this gives me any benefit.

They make it like a big deal if you want to start as a wholesale client. You'd have to go through a vetting of some sort to qualify. Now they are just giving me the status and if I don't want it I think I have to apply to convert back I think and see if I can. But I don't know what is better.

I think it makes no difference to me. It has got something to do with if they put you in B class and your trades are offset in-house vs they send your net trades direct to the interbank. But does that give me any advantage like faster execution or better liquidity or?????
  • #5
  • Aug 19, 2020 8:52am Aug 19, 2020 8:52am
There is this article that explains the differences https://www.fxstreet.com/education/w...x-201804200811

But I still can't tell if there is anything different on my end that I should be looking out for.
Any advantages/disadvantages or is it all seamless and the move satisfies some in-house operations for the broker and nothing really to do with me?
  • #6
  • Aug 19, 2020 8:57am Aug 19, 2020 8:57am
which leverage are you trading with ?
  • #7
  • Aug 19, 2020 9:02am Aug 19, 2020 9:02am
Quoting MXT
which leverage are you trading with ?
500:1
  • #8
  • Aug 19, 2020 9:07am Aug 19, 2020 9:07am
Quoting OutThere
{quote} 500:1
well sounds good , wholesale clients usually have access to high leverage

but why don ' t you just chat with your broker and ask the guy ?
  • #9
  • Aug 19, 2020 9:18am Aug 19, 2020 9:18am
Quoting MXT
{quote} well sounds good , wholesale clients usually have access to high leverage but why don ' t you just chat with your broker and ask the guy ?
The article says something about getting swaps on net position for a wholesale account. Maybe I'll get less swaps? No idea.

I just wanted to see if there are any traders who have experienced this. I have read the part of the agreement that talks about the conversion but it doesn't say anything about advantage or disadvantage of any kind. They just want you to know that you are regarded as a wholesale client and not a retail client any more.

At least when I read about how bad the retail clients have it as bottom feeders of the industry, I can claim that I don't belong to that group because I am a wholesaler. lol
Attached Image(s) (click to enlarge)
Click to Enlarge Name: RETAIL.jpg Size: 102 KB
Click to Enlarge Name: WHOLESALE.jpg Size: 120 KB
  • #10
  • Aug 19, 2020 9:32am Aug 19, 2020 9:32am
I feel like I have crossed a threshold.

Inserted Video
  • #11
  • Aug 19, 2020 9:37am Aug 19, 2020 9:37am
Quoting OutThere
{quote} The article says something about getting swaps on net position for a wholesale account. Maybe I'll get less swaps? No idea. I just wanted to see if there are any traders who have experienced this. I have read the part of the agreement that talks about the conversion but it doesn't say anything about advantage or disadvantage of any kind. They just want you to know that you are regarded as a wholesale client and not a retail client any more. At least when I read about how bad the retail clients have it as bottom feeders of the industry, I...

quite likely it is related to ESMA ruling

so it order to let you trade at 500 : 1 you must be considered as " Wholesale "

which account size do you have ?
  • #12
  • Aug 19, 2020 9:44am Aug 19, 2020 9:44am
Quoting MXT
{quote} quite likely it is related to ESMA ruling so it order to let you trade at 500 : 1 you must be considered as " Wholesale " which account size do you have ?
yah, Maybe all clients got converted for some technical reason.

Sorry, I'm not telling you my account size.

The size doesn't matter. It's how you use it that matters.
  • #13
  • Aug 19, 2020 9:54am Aug 19, 2020 9:54am
not interested in your account size mate

just wanted to see whether they stick to ESMA sizes or they have some leeway from that rule

the ESMA rule is above 500 K to be considered Wholesale , but they likely must have applied the 2 out of 3 in your case as you surely are way below that
  • #14
  • Aug 19, 2020 10:00am Aug 19, 2020 10:00am
Quoting MXT
not interested in your account size mate just wanted to see whether they stick to ESMA sizes or they have some leeway from that rule the ESMA rule is above 500 K to be considered Wholesale , but they likely must have applied the 2 out of 3 in your case as you surely are way below that
Ok. I see what you mean. The notional value of derivatives held by me has been above 100K I guess.

Still don't know if the conversion means anything or it's just an internal classification.

If it is just a technical classification, why would some go through the trouble to apply for it and be vetted for acceptance?
  • #15
  • Aug 19, 2020 10:08am Aug 19, 2020 10:08am
Quoting OutThere
{quote} Ok. I see what you mean. The notional value of derivatives held by me has been above 100K I guess. Still don't know if the conversion means anything or it's just an internal classification. If it is just a technical classification, why would some go through the trouble to apply for it and be vetted for acceptance?
very good news for you my friend , otherwise you 'd forced to trade at 30 : 1
  • #16
  • Aug 19, 2020 10:27am Aug 19, 2020 10:27am
Can you please check how much is minimum deposit right now via wire transfer?
  • #17
  • Aug 19, 2020 10:51am Aug 19, 2020 10:51am
Quoting OutThere
{quote} 500:1
If AXi UK have given you 500:1 leverage and you wasn't meant to have it, then you are very lucky and shouldn't snitch on Axi.

you need $450,000 EUROS Liquid in Cash/Shares to Qualify, also you must apply for a Professional Account/Wholesale.
All Assets NAS100 GLD BTC AUS JPY GBP All Time Return: 17.5%
  • #18
  • Aug 19, 2020 11:04am Aug 19, 2020 11:04am
Quoting Phil_GMT
{quote} If AXi UK have given you 500:1 leverage and you wasn't meant to have it, then you are very lucky and shouldn't snitch on Axi. you need $450,000 EUROS Liquid in Cash/Shares to Qualify, also you must apply for a Professional Account/Wholesale.
yep exactly , that ' s why i asked

but quite likely he 's with Axi Int.l , and given his commission and volume turnover , even though he doesn 't qualify on the account size side, he 's been very lucky to be switched to Wholesale nonetheless
  • #19
  • Aug 19, 2020 12:04pm Aug 19, 2020 12:04pm
Yes, I am with with Axi Int.

Still no one mentions why I am so lucky.

I am not snitching on Axi because I don't know why I would. Is asking about it on an FX forum a kind of snitching about it?

Again guys...why am I so lucky? What can I do with my new status that I couldn't do before?
  • #20
  • Aug 19, 2020 12:05pm Aug 19, 2020 12:05pm
Quoting OutThere
Yes, I am with with Axi Int. Still no one mentions why I am so lucky. I am not snitching on Axi because I don't know why I would. Is asking about it on an FX forum a kind of snitching about it? Again guys...why am I so lucky? What can I do with my new status that I couldn't do before?
Write to your account manager, he/she will explain to you.
0 traders viewing now