The German subsidiary of RoboMarkets has launched a new brand, RoboMarkets Pro, under which the brokerage will target professional traders, Finance Magnates has learned.
The new brand is operated by RoboMarkets Deutschland GMBH, which Germany’s BaFIN regulates. The entity has already been operating for a few years now.
Under the new brand, the brokerage platform will focus on professional clients who are residents of the European Economic Area (EEA). According to the broker, the decision to launch the new services was driven by growing demand among such clients.
“Professional traders are currently the most neglected group of clients in the brokerage business. We are, therefore, putting extra effort into paying more attention to them and making their trading more comfortable,” said Maximilian Felske, the General Manager of RoboMarkets Pro.
To qualify as a professional, the trader needs to have a portfolio of more than €500,000 in cash deposits and investment instruments. Further, the trader should have performed large transactions in the relevant market with an average frequency of ten per quarter over the previous four quarters and should have been working in the financial sector for at least a year in a professional position.
Changing European Regulations
The European trading industry changed in 2018 when ESMA brought in heavy restrictions on leverage and other marketing tactics for retail clients. This even pushed several traders away from the brokerages regulated in offshore jurisdictions.
However, as a professional client, a trader on RoboMarkets Pro will have access to up to 300:1 leverage , which is capped at 30:1 for retail traders.
“We notice this group of clients has a rising demand for high-leverage products,” Felske added. “The company will, therefore, focus on satisfying this, serving them in the best way, starting from an onboarding process and continuing with specific conditions for the most popular products: CFDs on major indices, major currency pairs, etc.”
“We strongly and categorically believe that for any solid and established brokerage group, it’s much more comfortable to have traders that are active mostly in the EU-regulated entities, rather than traders who are trying to onboard offshore units on their own initiative.”
