In investor-classification rules, any client who is not a professional or an eligible counterparty is treated as a retail client. Retail clients receive the highest level of regulatory protection. For example, they are entitled to clear risk disclosures and standardized warnings, have lower maximum leverage, and benefit from rules like negative-balance protection. Regulators (like ESMA and FCA) impose strict conduct requirements on providers when dealing with retail clients to ensure “fair and honest” treatment.

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