FXOPEN AU

What protection do wholesale clients lose?

• Wholesale clients do not get the same protections afforded to retail clients

• Wholesale clients have an obligation to make additional payments should your account fall into a negative balance

• As a wholesale client we will not be obliged to restrict leverage and margin on your account

• As a wholesale client we may assume your level of experience when assessing product suitability

• As a wholesale client we may prioritise other factors in giving best execution apart from price

• As a wholesale client we can use more sophisticated language when talking about risks and benefits of leveraged trading

• Clients who are classified as wholesale are excluded from certain regulations under the Corporations Act including

  • Issuing of disclosure documents including Product Disclosure Statement anf Financial Services Guide

  • Ability to lodge complaints with AFCA

  • Ensuring staff dealing with clients hold appropriate RG 146 courses and the treatment of client money

  • FXOpen AU must not provide any risk warning to wholesale clients

Am I eligible for an FXOpen AU Pro account?

If you satisfy either of these five tests, you may be eligible to opt up to become a wholesale client and have an FXOpen AU Pro account:

1. Product value test: you will invest $500,000 or more.

2. Small business test: Your business must have at least 20 employees (for a non-manufacturing business) or 100 employees (for a manufacturing business).

3. Net Asset/Income test: you provide FXOpen AU a copy of a certificate given within the preceding 6 months by a qualified accountant that states you:

   • have net assets of at least $2.5 million;
   • have a gross income for each of the last 2 financial years of at least $250 000

4. Professional investor test: You are a professional investor, which includes, amongst others, Australian Financial Services Licensees, Australian Prudential Regulation Authority regulated bodies, trustees of public superannuation funds, listed entities, many of the Financial Services Licensees in other countries and persons controlling at least $10m.

5. Sophisticated investor test:

   • the Pro account is not provided for use in connection with a business;

   • FXOpen AU is satisfied on reasonable grounds that you have previous experience in using financial services and investing in financial products that allows you to assess:

     • the merits of financial products;

     • the value of financial products;

     • the risks associated with financial products;

     • your own information needs;

     • the adequacy of the information given by FXOpen AU;

   • FXOpen AU gives you before, or at the time when, the Pro account is provided, a written statement of our reasons for being satisfied as to those matters;

   • You sign a written acknowledgment before, or at the time when, the Pro account is provided that:

     • FXOpen AU has not given you a Product Disclosure Statement;

     • FXOpen AU has not given you any other document that would be required to be given to you under the respective chapter of the Corporations Act 2001 if financial products were provided to you as a retail client;

     • FXOpen AU does not have any other obligation to you under the respective chapter of the Corporations Act 2001 that FXOpen AU would have if financial products were provided to you as a retail client.