MiFID divides all its clients into three separate categories:
Private client
A private client is an individual who invests capital in the development of large projects.
Professional client
Experience of at least one year in the financial sector in a position requiring knowledge in relation to transactions in financial instruments or brokerage services.
Full partner
Represents a full range of brokerage services, legal and other protection, and also has a high degree of awareness.
All clients receive a degree of investment protection corresponding to the category, with private clients receiving the highest level of protection. In addition, MiFID requires license holders to fully protect clients’ confidential information as well as their assets. Brokers that have a license from this regulator in their arsenal are considered the most reliable intermediaries in currency dealing.
Only highly professional, honest and reliable dealing centers can comply with the directive. A trader can be completely confident in the safety of his capital, since a MiFID license is a guarantee of full protection of the rights and interests of private traders. The regulator has serious leverage over brokerage organizations, so in the event of a conflict, a stock player has every opportunity to prove his case and receive compensation. You can find more detailed information on the official website of MiFID: europa.eu