What do the client categories specified in the MiFID mean? Each client is classified in one of the following three categories set out in the Directive, before any client orders are executed or clients acquire any investment product: Retail Investors: Individuals and Legal Entities who will enjoy the highest possible level of investor protection. Professional Investors: Mostly Institutional Investors, as well as Retail Investors with professional knowledge and experience who meet certain financial criteria and enjoy limited investor protection. Eligible Counterparties: Government Organisations and Institutional Investors who will not benefit from the rules of investor protection. According to this classification, higher protection will be granted to Retail Investors, as they have inadequate knowledge and experience of markets and financial instruments and are unable to identify the underlying risks. At the same time the activity of capital markets professionals, who have the experience and knowledge to make their own investment decisions, will not be encumbered.