What Is Professional Status?
Major stock and options exchanges define “Professional” status by exclusion: any user who does not qualify as a non-professional. By framing professional status in this way, exchanges place the burden of proof on individuals to prove non-professional use, rather than requiring exchanges to demonstrate professional intent.
Regulatory definition according to the exchanges
The exchanges define a Nonprofessional Subscriber as any natural person who is not:
(a) registered or qualified in any capacity with the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), any state securities agency, any securities exchange or association, or any commodities or futures contract market or association;
(b) engaged as an “investment adviser” as that term is defined in Section 202(a)(11) of the Investment Advisers Act of 1940 (whether or not registered or qualified under that Act); or
(c) employed by a bank or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt.
Any use of stock or options data for business, professional, or other commercial purposes is incompatible with Nonprofessional status, even if the commercial use is on behalf of an organization that is not in the securities industry.
Key criteria: registration, job function, usage purpose
Three main factors determine professional status:
- Registration or Qualification: Being registered or qualified with U.S. regulatory bodies such as the SEC, CFTC, FINRA, or regulatory bodies in other countries (such as the FCA in the UK or the FPC in Canada) typically indicates professional use of market data.
- Job Function: Roles involving trading, portfolio management, financial analysis, or financial advisory services usually qualify as professional, since these functions rely on market data for commercial decision-making.
- Intended Data Usage: Using data for business or commercial purposes—such as client reporting, algorithmic trading, or research sold to third parties—falls under professional classification. Personal, non-commercial users reviewing markets for individual or familial investment decisions remain non-professional.
Examples of professional vs. non-professional roles
Professional Roles
| Job Title | Company Type | Reason |
|---|---|---|
| Investment Banker | Investment Bank | Involved in issuing securities, mergers, and financial advisory. |
| Trader | Trading Desk | Executes securities, commodities, or derivatives trades. |
| Portfolio Manager | Investment Firm | Manages investment portfolios and makes investment decisions. |
| Research Analyst | Research Firm | Produces investment research that influences trading and advisory decisions. |
| Investment Adviser | Advisory Firm | Provides tailored investment advice to clients. |
| Broker or Dealer | Broker-Dealer | Engages in buying or selling securities on behalf of clients. |
| Structured Finance Specialist | Investment Bank | Designs investment products and financial structures. |
| Relationship Manager | Private Bank | Advises clients on investments and financial strategies. |
| Wealth Manager | Wealth Management Firm | Provides investment advice and manages client portfolios. |
| Financial Consultant | Consulting Firm | Offers tailored investment advice and guidance to clients. |
| Financial Planner | Financial Planning Firm | Provides financial planning services and investment advice. |
| Software Developer | Fin-Tech Startup | Develops software or systems that support investment activities. |
Non-Professional Roles
| Job Title | Company Type | Reason |
|---|---|---|
| Software Developer | Social Media Company | Develops software unrelated to investment activities. |
| Administrative Assistant | Bank | Provides administrative support without engaging in investment activities. |
| Customer Service Rep | Broker-Dealer | Handles customer inquiries and support without providing investment advice. |
| Operations Manager | Food Service | Manages operational aspects of the business, not directly involved in investments. |
| Compliance Officer | Insurance Company | Ensures regulatory compliance but does not engage in investment decisions. |
| Marketing Coordinator | Ad Agency | Focuses on marketing activities, not on investment advice or transactions. |
| HR Manager | Software Company | Manages human resources functions, not involved in investment activities. |
| Accountant | Accounting Firm | Handles financial records and reporting, not directly involved in investments. |
| Receptionist | Corporate Office | Manages front desk and administrative tasks without investment responsibilities. |
| Data Entry Clerk | Transportation | Enters data into systems without engaging in investment-related activities. |
Why Professional Status Matters
Fee implications
Market data fees are significantly higher for professionals than for non-professionals. For example, for options data, the exchange fees for a single professional user are more than 25 times higher than the fees for a non-professional user. API-based access also differs: professional API usage often requires enterprise licensing costing thousands per month, while non-professionals can use API plans without paying non-display use fees. While some exchanges offer caps or firm-level pricing for professionals, these still exceed individual non-professional rates by multiple orders of magnitude.
Licensing obligations and compliance requirements
Exchanges require vendors to classify users accurately and enforce license terms accordingly. Non-professional users can self-certify their status, but the vendor must still ensure the usage meets the definition set by the exchange—primarily that the data is for personal, non-commercial use. This is why Market Data verifies employment information for all our paid accounts. Per exchange policies, users who do not submit their employment information for verification cannot receive real-time exchange data from a vendor.
Our self-service plans
All Market Data self-service plans (Starter, Trader, Quant, and Prime) are intended exclusively for non-professional users. These plans include exchange fees only for non-professional use. As part of the purchase process, subscribers are required to sign exchange agreements and certify their non-professional status. If a professional user incorrectly self-certifies, the subscription will be in breach of those agreements and subject to retroactive professional exchange fees. Market Data does not remit or subsidize exchange fees for professional use under any self-service plan.
How To Determine If You Qualify As A Non-Professional
We ask our users to self-certify their non-professional status. To help users make this determination, we use a straightforward self-certification process called the Data Use Interview. All users are required to submit responses to this interview after making a purchase at Market Data so we can properly classify them.
You qualify as a non-professional if you answer No to all of the questions below:
- Are you representing a business or organization (rather than acting solely as an individual)?
- Will you use the data in connection with any commercial or business activities (as opposed to using it solely for your personal investments)?
- Are you registered or qualified with FINRA, NFA, the SEC, the CFTC, or any other securities or regulatory body, either in the U.S. or any other country?
- Are you employed as a securities or investment professional, engaged as an asset manager, or performing functions similar to those requiring registration with a securities regulatory body (e.g., portfolio management, brokerage, investment analysis)?
- Do you monitor, trade, or manage assets on behalf of any person or entity other than yourself or your immediate family members (spouse, parents, children, grandparents, grandchildren, and their spouses)?
- Do you use capital from any individual or entity other than yourself in your trading? (Trading on margin with your own funds is allowed.)
- Do you have any agreements to share profits from your trading activities or receive compensation for trading?
- Do you receive office space, equipment, or other benefits in exchange for your trading or financial consulting?
- Will you access the data from a work location (as opposed to your home)?
If you answer Yes to any of the above, you are likely considered a professional data user and will be required to subscribe under a professional plan and pay your own exchange fees.
Frequently Asked Questions
Not sure whether you qualify as a non-professional? The rules can be strict, and it’s important to get it right before subscribing. If there’s any uncertainty, contact our compliance department through the helpdesk before making a purchase. We’re happy to review your situation and help you avoid classification or billing issues later on.
Eligibility and Employment Status
- Can a retired professional qualify as non-professional?
Yes. A retired individual can qualify as a non-professional as long as they are no longer employed in a financial role, are not registered with a securities regulatory body, and do not use the data for business or commercial purposes.
- Does self-employment affect non-professional status?
Possibly. If the data is used in connection with any business activity—including trading on behalf of clients or an entity other than oneself—the user would be classified as professional. Simply being self-employed does not disqualify someone, but using data for a business purpose does.
- Do I need to notify Market Data if my employment status changes?
Yes. Subscribers are required to maintain an accurate self-certification status. If employment or professional registration changes in a way that affects eligibility, the subscriber must notify Market Data and may need to convert to a professional subscription.
- What if I’m registered with FINRA, NFA, or a similar regulatory body but not actively working?
Registration alone typically qualifies a user as professional, even if not currently employed. The exchanges consider registration status a key factor in classification, regardless of current activity or intent.
Permitted Use Cases
- What about academic use?
Academic use may qualify as non-professional if the data is used strictly for personal education and not in connection with any commercial, advisory, or institutional research.
- If I’m an active trader, daytrader, or algorithmic/quant trader?
As long as you are trading your own account, the frequency of your trades does not impact your non-professional status. Use our data to help you trade as much as you’d like.
- Can I use the data for backtesting or paper trading?
Yes, as long as the backtesting or paper trading is done for personal use. If the results are used for a business, shared with clients, or incorporated into a commercial product or service, the user would be considered professional.
- Can I use this data to advise family members or friends?
No. Providing advice or managing assets for anyone outside the immediate household, even without compensation, typically constitutes professional use under exchange rules.
- Is trading in a joint account with a spouse still considered personal use?
Yes. Trading in a joint account with a spouse or other immediate family member is generally allowed under the non-professional classification, as long as the trading activity is not tied to a business or advisory service.
Business and Commercial Use
- Can I use the data in my personal LLC?
No. Even if the LLC is used only for managing your personal assets, exchanges classify any entity-based use as professional. Data accessed through an LLC is considered commercial, regardless of whether the user is the sole member or whether the activity is for personal investing.
Even if your LLC is a single member pass-through entity or disregarded by the IRS for tax purposes, your LLC cannot register for or receive market data as a non-professional. Under exchange rules, a LLC is not a natural person and therefore will always be classified as professional data user.
- Can I pay for my subscription from a business account or request an invoice in my company’s name?
Not if you open your account as a non-professional. Paying from a corporate bank account or credit card—or requesting an invoice issued to a company—signals business use. Exchanges treat this as professional, so the account must be upgraded to a professional or enterprise license, and higher exchange fees will apply.
- Can I use the data in a trust account?
It depends. The trust itself is generally treated as a professional user. However, under exchange rules, if the trustee or beneficiary uses the data solely for personal investment decisions and receives no compensation or management fees, they may qualify as a non-professional. This determination must be made based on the specific facts of the trust arrangement.
- How do exchanges define commercial use?
Commercial use includes any activity where the data supports a business function—such as trading on behalf of others, providing investment advice, building financial products, or integrating data into a paid service. Even if not directly monetized, if the data is used within a business or organizational context, it is considered commercial. Redistribution is always considered commercial.
- Can I use Market Data in a shared spreadsheet or team workspace?
No. Sharing access to data with others, including coworkers or collaborators, is considered redistribution and typically constitutes professional or enterprise use. Each user must have their own license, and shared access is not permitted under non-professional terms.
Compliance and Certification
- What happens if I accidentally self-certify incorrectly?
If a user incorrectly certifies as non-professional and later turns out to meet the criteria for professional status, they will owe the exchange fees in arrears. This liability applies retroactively to the date of the incorrect certification and may include penalties and interest, depending on the exchange’s policies.
- How often do I need to renew or update my non-professional certification?
Non-professional certifications must be renewed once per year. Users will be prompted to re-certify annually to confirm that their status has not changed.
- What documentation might be required to prove non-professional status?
In most cases we use your public Linkedin profile to verify your line of work and job function. In some cases, additional documentation may be requested to verify non-professional status. This may include a CV or résumé, employment letter, or other materials that clarify the subscriber’s job function and whether it involves financial services or securities-related work.
Your Responsibility as a Subscriber
Professional status isn’t determined by your intent—it’s based on objective criteria: how you’re registered, what your job function is, and how you use the data. Subscribing under the wrong classification can create liability for both the user and the vendor, which is why we rely on our users to certify truthfully and keep their employment information up to date.
If you’re unsure about your status, we strongly encourage you to clear up any questions before subscribing. Our compliance team is here to help and we’re happy to assist—regardless of whether you ultimately qualify as a non-professional or professional user.
Please note that we cannot offer refunds if your account is classified in a way that differs from your expectations. All classifications are made according to the exchange rules based on the information you provide—or in some cases, fail to provide. If we’re unable to confirm your eligibility for non-professional status, your account will be limited to delayed or historical exchange data, as required by policy.
We’re committed to helping all users stay compliant and get the most out of their Market Data subscription—so don’t hesitate to reach out before subscribing if you’re unsure.