At EXANTE, we are committed to helping you make informed trading decisions by ensuring you have the necessary knowledge and understanding.
To support this, you may be asked to complete specific qualification tests (also known as appropriateness tests) before accessing trading of certain financial instrument groups or receiving certain financial instrument services. These tests are designed to assess your familiarity with the features and risks of various financial products and services, helping us act in your best interest.
You can find all of the Qualification Tests in a dedicated tab on the left-hand side of your Client Area:
Qualification Tests
Here's an overview of the four main qualification tests:
1. Margin Trading Qualification Test
This test is required if you want to trade cash-settled instruments using margin. Margin trading allows you to borrow funds to increase your trading capacity. While this can boost potential profits, it also comes with a higher risk of losses.
The test assesses your understanding of key concepts related to margin trading, including:
Margin Trading Basics: How margin accounts operate, the role of leverage, and how it can magnify both profits and losses.
Short Selling: How you can profit from falling prices and the risks involved—especially the possibility of unlimited losses.
Leveraged Trading: How using borrowed funds to take larger positions can amplify both gains and losses.
By successfully completing this test, you confirm that you understand the risks involved in margin trading and are prepared to manage them responsibly.
2. Complex Trading Qualification Test
This test is required if you plan to trade complex cash-settled financial instruments. These instruments often have features that are less straightforward than traditional stocks or bonds and typically involve a higher level of risk.
The test evaluates your understanding of the unique characteristics and potential risks associated with various complex instruments, such as:
Complex Mutual Funds: Funds with advanced investment strategies or uncommon fee structures.
Complex Shares: Equities that include embedded derivatives or other non-standard features.
Complex Bonds: Bonds with special terms, such as contingent convertibility or complex repayment structures.
By completing this test, you demonstrate that you are aware of the specific risks and complexities of these instruments and are better equipped to make informed trading decisions.
3. Derivative Trading Qualification Test
This test is required if you intend to trade derivative contracts.
Derivatives are financial instruments whose value is based on an underlying asset—such as stocks, currencies, or commodities. Common examples include Futures, Options, Contracts for Difference (CFDs), and SPOT FX contracts.
The test assesses your understanding of the core principles and risks involved in trading various types of derivatives, including:
Futures: Contracts that require the buyer to purchase, or the seller to sell, an asset at a set price on a future date..
Options: Contracts that give the buyer the right—but not the obligation—to buy or sell an asset at a specific price within a defined timeframe.
CFDs (Contracts for Difference): Agreements to exchange the difference in an asset's value between the time the contract is opened and closed..
SPOT FX Contracts: Agreements to exchange one currency for another at the current market rate for immediate settlement.
Due to the leveraged nature and price volatility of derivatives, trading them carries significant risk. This test ensures you have a clear understanding of these risks before being approved to trade derivatives.
Please ensure all answers are accurate and complete—insufficient information may result in your request to trade derivative contracts being declined.
4. Recategorisation Qualification Test
This test is intended for clients who wish to be recategorised from Retail to Professional status.
It evaluates whether you meet the requirements for professional client classification by assessing:
Your Financial and Investment Profile: Questions about your net worth, financial assets, and the size of your investment portfolio.
Your Knowledge and Experience: Questions about your previous experience in financial markets and your understanding of various investment products and associated risks.
If you pass the test, you’ll be asked to upload supporting documents to verify your answers. This may include your CV or résumé, account statements showing your portfolio size, and trading history records, depending on the professional criteria you have declared in the test.
This process ensures that clients granted Professional status genuinely meet the regulatory criteria and understand the reduced protections that come with this classification.
We encourage you to take these qualification tests seriously and answer all questions honestly and thoroughly. These tests are designed to help safeguard your trading journey and promote informed decision-making.
If you have any questions or need assistance, our Client Services team is here to help. You can always reach us via email, chat, or phone.