'Collective' spread betting accounts?

[gataylor]

Hi there,

Anyone know what the official position is on spread betting accounts for groups of individuals?

I'm in a share club, and we have share dealing set up in the club's name (and we have all the appropriate paperwork for running the club etc.) Is it possible to set up a spread betting account for the club as well?

I phoned IG Index and asked them, and they said it wasn't possible to open an account with them for a share club. I asked if that was a company policy or a legal one, but the person I was speaking to didn't know.

So, does anyone out there know of any spread betting companies that offer accounts for clubs? It's all very theoretical at the minute, and the club might not want to go ahead with spread betting, but I figured I'd ask.

Cheers,

Geoff

 

[the blades]

Hi there,

Anyone know what the official position is on spread betting accounts for groups of individuals?

I'm in a share club, and we have share dealing set up in the club's name (and we have all the appropriate paperwork for running the club etc.) Is it possible to set up a spread betting account for the club as well?

I phoned IG Index and asked them, and they said it wasn't possible to open an account with them for a share club. I asked if that was a company policy or a legal one, but the person I was speaking to didn't know.

So, does anyone out there know of any spread betting companies that offer accounts for clubs? It's all very theoretical at the minute, and the club might not want to go ahead with spread betting, but I figured I'd ask.

Cheers,

Geoff

Geoff,

I'm suprised at what you say, as until recently I was a memebr of a shareclub and our account was with IG index. Though I've left the club IO still attend the "meetings" (**** ups) and they're still with IG.

:?:

UTB

 

[gataylor]

I'm suprised at what you say, as until recently I was a memebr of a shareclub and our account was with IG index. Though I've left the club IO still attend the "meetings" (**** ups) and they're still with IG.

Interesting... I'll maybe phone again and see if I get to talk to a different person...!

Was your account in the club's name, or was it an account someone opened and operated on behalf of the club?

Cheers,

Geoff

 

[jkplay]

It all depends what it is you are looking to do and how you will manage the account.

Legaly an investment club is not an entity but a group of individuals who get together and discuss investments and pool together to execute them. Now from the companys point of view they need someone to take responsibility for margin calls and any other issues and that usually is the chairman of the club. You can set up an account in the clubs name, from an individual bank account and assign people to have access to the account as a power of attorney and monitor/trade on behalf of the chairman (clubs fund).

Another option is registering as a corporate account if you are a registered investment club and have the money out of the clubs bank account but it then the tax free advantage goes away.

It is a very complicated set up and one which will vary between clubs strategies and the way the clubs are run.

By far the simplest is to all have individual accounts and meet to discuss investment strategy's??

JK

 

[LION63]

Anyone know what the official position is on spread betting accounts for groups of individuals?

Some companies will entertain the idea provided you satisfy their criteria which you seem to.

[/QUOTE]I'm in a share club, and we have share dealing set up in the club's name (and we have all the appropriate paperwork for running the club etc.) Is it possible to set up a spread betting account for the club as well?[/QUOTE]

Yes it is but you will have to nominate an individual who will deal with the spread betting firm; execute trades; deposit/withdraw funds receive correspondence; be responsible for margin calls and so on ......

[/QUOTE]So, does anyone out there know of any spread betting companies that offer accounts for clubs? It's all very theoretical at the minute, and the club might not want to go ahead with spread betting, but I figured I'd ask.[/QUOTE]

My information might be out of date as things tend to change on a regular basis but as far as I know, CMC offer what you are looking for. Give them a call or visit their website.

 

[the blades]

Interesting... I'll maybe phone again and see if I get to talk to a different person...!

Was your account in the club's name, or was it an account someone opened and operated on behalf of the club?

Cheers,

Geoff

Geoff,

Neither......I think..... The statements had all our individual names on them. I was already an account holder, so I'm not sure if this made any difference when we opened it?

As Lion points out - you have to nominate an individual to deal. And as jkplay says, If I did it again I'd leave trading to the individuals and use the club for strategies. But that's personal choice for you.

UTB

 

[ns1000]

Sounds like what you want is a joint account. Most of the SBs will do this for you. Word of warning though - each member would be able to deal individually, and you could be jointly and severally liable for any debts. Basically this could mean that another member of the club could put the account into a large loss, and the SB could pursue you personally for the full amount.

 

[gataylor]

Thanks for the replies

Hi,

Thanks for all the repies, folks. I'm still not sure that spread betting is right for us as a club, but it's nice to know that there are some options (like joint accounts) that we can use if we choose.

Cheers,

Geoff