FX Trading through a SIPP Account

[Stanko]

Hi, I'm new to this forum, but wondered if somebody could offer me a little advice.

I'm wondering if its possible to apportion a small percentage of my overall SIPP fund, to trade FX.

Firstly, is this actually possible?

I have been looking into this for a while and have a few friends that do some trading on FX but they use cash.

I'd like to have a dabble myself.

If anybody can confirm if this is possible, and if so, what the most straightforward method is, I'd appreciate it.

I'm unsure whether my SIPP Trustees will allow me to open up a account with ETX, City Index etc...to trade.

Thanks

Stanko

 

[f2calv]

Yes you can trade CFDs (forex, indices, stocks, etc) within a SIPP wrapper.

You will need to transfer all/some of your SIPP to a specialist provider, Google "sipp cfd provider" and you'll see there are plenty of options - however their charging structures vary with set-up and on-going yearly costs for the administration. The brokers the providers will work with tends to be the bigger more heavyweight players IMO.

I did some totally non-thorough research earlier on this year, but to give you an idea of providers and costs (not sure if the prices I had written down included setup charges, but they will give you an idea;

http://www.essentialsipp.com/ £275+vat/year
Brokers : Interactive Brokers, AXA Wealth, Pepperstone and Berkeley Futures Limited

http://www.candpsipp.co.uk/ £350+vat/year
Brokers : unknown

http://www.pointonyork.co.uk/ £150+vat/year
Brokers : Interactive Brokers, Saxo Bank, Selftrade

https://www.epml.co.uk/
Brokers : Interactive Brokers & Saxo Bank

Note most/all brokers will need a minimum balance probably in excess of £15k

Hope this information helps, and if you actually start doing it I'd be keen to see which provider/brokers you picked and why, cheers.