Spreadbetting and CFD
Does anyone have an opinion on spread betting and CFD's as permissible asset classes in SIPP's. Has anyone got some first hand experience good and bad. I am fascinated by the juxtaposition of the extremes in risk. Go on - send me a comment.
posted by Chris Read @ 23:01
1 Comments:
Spread bets are not allowable in a SIPP. CFDs are, but not all SIPP mangers will support them. Risk is about the same, the main difference is that with a spread better you pay a higher spread but no commission, CFD is usually a lower spread but you pay commission. In a SIPP both are tax free, outside a SIPP the spred better is tax free. CFD could be a good way to incorprate margin trading into a SIPP. It also increases the risk of a wipe out to a novice very dramatically. If you are inexperienced trade small witha spread better and see if you can make money. if you can do that you MAY be able to make money with CFDs in your SIPP.
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