long term CFD as an investment SIPP

[djfuesjf]

I am considering a long term (as in years) investment in CFD's.
probably with FTSE100 or another index maybe NIKKEI
I realise i have to pay interest etc. I view this as ok as long as the index rise is higher than the interest.

the brokers can change the margin, i am not sure if they can change this after the trade has been placed. My question is do you think they can change the margin call for a contract after the trade has been placed, in particular on an index ? and if yes is this likely ?

 

[LevII]

Why bother with a CFD? if all you are doing is buying the index just buy the appropriate ETF.

 

[Anonymous]

Buying the ETF does sound better when taking into consideration paying interest for the long term for a CFD.

As for the margin, when trading gets volatile the margin may change.

 

[djfuesjf]

hI

a main reason for using CFD is the gearing 10% down 90% borrowed

i can't see how i can do that directly with n ETF ?

 

[LevII]

hI

a main reason for using CFD is the gearing 10% down 90% borrowed

i can't see how i can do that directly with n ETF ?

Are you sure you can get that margin in a SIPP? I think you may find it is not permissible.

If you can, which provider / CFD company?

 

[djfuesjf]

not checked the SIPP's yet, assuming same as shares , yes there maybe a 50% limit like with buy to let in a SIPP

 

[JonnyT]

Comdirect allow CFDs to be traded in a Sipp for certain individuals.

JonnyT