What Is the Difference Between Retail, Professional and Eligible Clients at Orbex?

Forex market trading classifies accounts and clients in order to protect capital fairly. The Orbex broker also divides its clients, based on the guidelines of regulatory bodies (such as CySEC and in line with the MiFID II framework), into three main categories: Retail, Professional and Eligible Counterparties . This classification is not merely an administrative process; it determines the level of leverage, the amount of compensation available and the depth of the trader's responsibility. Below, the Teagle team reviews the conditions the Orbex broker has set for each category of its clients.
 

Conditions for retail clients at the Orbex broker

Retail clients at the broker Orbex refers to the range of traders who lack deep expert knowledge of the complexities of the derivatives market. According to the document Client Categorisation of Orbex, this group of enjoys the highest level of protection . The conditions the Orbex broker has set for this category of its clients include:

• Leverage limits: To prevent sudden loss of capital, leverage is limited for these users (usually between 1:2 and 1:30, depending on the asset).

• Negative Balance Protection: Orbex guarantees that these users' losses will never exceed the amount they have deposited.

• Appropriateness Test: Under clause 2.1 of the operational requirements, Orbex is obliged to assess the user's knowledge and experience before allowing them to trade. If the system determines that a product is dangerous for the trader, it must issue an explicit warning.

• Investor Compensation Fund (ICF): These users are covered by protection funds so that, if the broker runs into structural problems, part of their capital is insured.

   For a retail trader, trading costs (Spreads) may be a secondary priority, because under the broker's Best Executionpolicy, the first priority is "total cost" and "capital security".

Conditions for professional clients at the Orbex broker

Once a trader proves they are able to assess risk, they can be recognized as a professional client. This category is divided into two groups:

1. Per se professionals (Per se)

These are entities that are inherently presumed to be experts, such as banks, insurance companies and pension funds. Large companies with a balance sheet of more than 20 million euros or a turnover of more than 40 million euros also fall into this category.

2. Elective professionals (Elective)

 Individual traders who want to be released from leverage limits must meet at least 2 of the following conditions:

1. Transaction volume: Carrying out at least 10 trades of significant size per quarter over the past year.
2. Financial portfolio: Holding cash and financial instruments worth more than 500,000 euros.
3. Work experience: At least one year of professional work in a relevant financial position that requires knowledge of CFD trading.

 Once upgraded to this level, Orbex is no longer required to provide "inappropriateness" warnings. Also, when executing orders, the broker may prioritize "execution speed" over "total cost". A professional client bears full responsibility for the results of their own strategies.

Conditions for the Eligible Counterparties (Eligible Counterparties) category at the Orbex broker

This is the highest level of classification and belongs exclusively to entities that themselves act as financial intermediaries (such as central banks or governments).

At this level, the relationship between Orbex and the client shifts from "protective" to "execution-only". According to Orbex's official client classification document:

• No depreciation reporting: The rule requiring notification when the account value drops by 10% (Depreciation Reporting) does not apply to this group.
• Complete removal of the appropriateness test: The broker assumes these entities have full knowledge; therefore Orbex bears no responsibility for losses resulting from a lack of understanding of the market.
• Pricing flexibility: For this category, the best price (Price) is not the only factor, and parameters such as "market depth" and "impact on liquidity" take priority.

Comparison table of client levels at the Orbex broker Orbex
 

Why does choosing the right client level at Orbex matter?

Many traders mistakenly try to present themselves as "professional clients" to get access to 1:500 leverage. But this is a double-edged sword.

1. Systematic risk: A retail client is protected by the broker during extreme volatility (such as a black swan event), but a professional client may end up owing money to the broker.
2. Information transparency: For retail clients, Orbex is required to disclose all costs and commissions before a trade, while eligible counterparties are assumed to be able to calculate costs dynamically on their own.
3. Market impact: Eligible and professional clients provide market liquidity with their heavy volumes. Choosing the wrong client level can lead to a rapid "Margin Call" in large accounts due to the lack of regulatory protections.

Conclusion: Which Orbex broker level is right for me?

Client classification at Orbexis a roadmap for risk management. If your goal is protecting your capital and learning gradually, the Retail level, despite its limitations, is the safest haven. But if you want to run complex institutional strategies and need high liquidity, moving to the Professional level is essential, provided you understand that in exchange for this freedom you lose the regulator's protective umbrella. At Teagle, we have reviewed a list of the most reputable forex brokers based on key parameters, including regulation, to make choosing a safe trading option easier for traders.