Margin Trading & SIPP

Chris_Justice

Hi All,

I have a small pension accumulated from a previous employer which I won't be making any further contributions to so it's a bit dormant.

I'd quite like to move it into a SIPP and casually trade to see if I can make something of it. I have some experience of margin trading with CFD's so I'm looking to be able to do that within a SIPP but I'm struggling to marry up a cost effective SIPP with a CFD broker. Has anyone had any experience/luck with this, and if so could you make some recommendations?

Thus far I've looked at quite a variety of SIPP providers but they are either too expensive (considering I only have a few thousand to play with) OR they won't allow CFD trading. I've found a broker in Alecto Finance but their recommended SIPP providers all charge a mint in annual fees!

Any help/advice is much appreciated, google is failing me!

Cheers,

Chris

CannySaver_2

Hi

I would imagine that many SIPP providers will steer clear of this type of investing, however some clearly do it, you just need to find one with acceptable charges (to state the obvious!).

I've used the following website:

http://www.!!!!!!.uk/sipp-zone/sipps/

to help research my SIPP, loads of information on charges, allowable investments etc.

What do you define as a reasonable cost? Are you looking for a SIPP which charges a fixed or percentage fee?

The Canny Saver

Chris_Justice

Hi Canny,

Thanks for the response. When I talk about reasonable costs it's because i'm working with a pot of around £10k so paying upwards of £1k a year in fees (as with some of the SIPPs out there) is a bit of a non-starter. The trouble is the low cost SIPPs I've come across are relatively restrictive on where you can invest but I can understand why they are cautious. I hadn't seen your link before so i'll have a good read there and see where it gets me!

Cheers.

CannySaver_2

Chris_Justice wrote: »

Hi Canny,

Thanks for the response. When I talk about reasonable costs it's because i'm working with a pot of around £10k so paying upwards of £1k a year in fees (as with some of the SIPPs out there) is a bit of a non-starter. The trouble is the low cost SIPPs I've come across are relatively restrictive on where you can invest but I can understand why they are cautious. I hadn't seen your link before so i'll have a good read there and see where it gets me!

Cheers.

Hi

Plenty of SIPP providers with annual charges of less than £500 and very open about platforms, products etc, it's just a case of whether they will allow CFDs in.

Mind you given the rubbish that some SIPP providers will let in I'm sure you will find someone to do it; not that I am saying CFD's are a poor investment you understand, just making the point that some SIPP providers have not exactly been picky in recent years.

The Canny Saver

jamesd

Not sure whether you're interested in them but Hargreaves Lansdown accept use of covered warrants. Worth asking about other forms of leverage/protection that they may offer.

knuckledragger

iweb-sharedealing have a sipp service which allows CFD I believe. Fees for the SIPP are £90pa.

Chris_Justice

Many thanks for all the responses guys. I hadn't come across i-web but it looks ideal so I think i'll give them a call and see where it gets me - cheers knuckle.

I knew I could count on MSE where google had failed me :beer: