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Non-professional status

A market data classification for individuals trading their own money, granting heavily discounted data fees provided they meet strict eligibility conditions.

Eligibility is narrower than people assume. Typical disqualifiers include being registered with a securities regulator, trading for a business or another person, using the data in a professional capacity, or being employed as an investment adviser.

Brokers must collect an attestation and can be required to reclaim the difference retroactively if the classification was wrong, so a casual misstatement can produce a surprise bill.

Example: a trader pays $10 a month for non-professional depth data. They incorporate and start trading through the company. That usually reclassifies them as professional at, say, $120 a month per feed. Twelve months of unreported use across three feeds is roughly $3,960 in back-billing.

Related: market-data-licensing, exchange-fee, level-2, direct-feed

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