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Retail vs Professional Investors
Retail vs Professional Investors

What is the difference between a retail investor and a professional investor on SmartCrowd?

Updated over a week ago

Retail Investor: All users registering on SmartCrowd platform are defaulted as retail clients. As a “retail client,” you are restricted to invest a maximum of $50,000 in a calendar year (January 1st to December 31st) . . According to the DFSA, an individual is classified as a Retail Client if they cannot meet the Professional Client criteria or if they opt to be classified as a Retail Client. These clients are also offered more protection because they are deemed to have less net worth, experience and understanding of relevant financial markets than a Professional Client. We are required to provide Retail Clients with certain disclosures and risk warnings that we may not necessarily provide a Professional Client. Furthermore, we will handle Retail Client complaints in accordance with specific requirements as defined by the DFSA.

SmartCrowd classifies all users as Retail Client unless the user requests to be classified as a Professional Client.

Professional Investor: If you are classified as a “professional client,” then you will have no limitation on how much you can invest using our platform. A professional client is one who has prior experience and understanding of relevant financial markets, and a net-worth of at least one million US dollars excluding primary residence.

Learn how to become a professional investor by clicking here

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