What is an Accredited Investor (AI) in CFD trading?
An Accredited Investor in Singapore refers to an individual whose:
- Net personal assets exceed S$2,000,000 in value, of which no more than S$1,000,000 in value is contributed by the net estimated fair market value of the individual’s primary residence;
- Net Financial assets exceed S$1,000,000 in value;
- Income in the preceding 12 months is not less than S$300,000.
Why should I apply to be an Accredited Investor?
- Qualified Accredited Investors can continue to apply the minimum margin of 2% when trading CFDs on foreign exchange. The minimum margin rate will be changed to 5% for retail investors
How do I show that I qualify to be an Accredited Investor?
There are no standard documents required to opt-in as AI. This would be dependent on which of the 3 criteria is being met, the proof required to be submitted will differ. In the case of annual income, we accept your income tax statement or payslip. As for net assets, examples of documents we can accept are title deed or bank account balance. To find out more, please contact us at +65 6390 5128 or email us at firstname.lastname@example.org
What protections are available to Accredited Investors?
IG is licensed by the Monetary Authority of Singapore (MAS) so you know you can depend on our credibility. You can be ensured that all client money is held in segregated trust accounts in accordance with the Singapore clients' money protection rules and all money held on behalf of clients is distributed across several top-tier banks regulated by MAS. Find out more about what we do with your money.
As an Accredited Investor with IG, you will not be subject to the same leverage restrictions for FX trading as retail clients when the higher margin rules kick in on October 2019.
Please visit our website to manage your risks.
Being classified as an AI also means, among other things, that you will be deemed to have more knowledge and the ability to understand and manage the risks of the financial products that you choose to invest in. You are assumed to have a certain level of understanding of financial products, and we are not obliged to determine your precise level of understanding of such products. We are also allowed to assume that you have sought independent advice prior to purchasing or participating in any financial instrument or investment. In addition, when you hold certain financial instruments or participate in certain activities, you will be afforded fewer statutory protections and remedies than retail investors.
Why do I need to open an account before I can become an Accredited Investor?
Only clients who are new to IG will need to first open a standard CFD trading account before applying to be classified as an Accredited Investor. You will be able to opt in on the application form if you fulfil the eligibility criteria.
If you already have a CFD trading account with us and think you may be eligible, you can apply to be an Accredited Investor by completing the application form and emailing the completed form back to email@example.com for processing.
How will I know when I’ve been switched from a standard account to that of an Accredited Investor status?
An email will be sent to you once your application has been approved.
For existing IG clients who have been determined by IG to be eligible for AI status your login details, account number and platform settings will remain the same.
Meanwhile, you can still trade on your standard account, Your new CFDs on FX margins will be changed immediately upon approval of your AI status.
What if I’m not eligible for an Accredited Investor account?
You can still trade on thousands of financial instruments on our award-winning platform, using a standard IG account. The margin rates for Forex products are subject to change after October 2019 for retail investors.
You can also use Guaranteed stop-loss orders (GSLOs) to help limit losses. To find out more, please visit our website.