SIPPS Pensions

[Scripophilist]

You can go short for a start! I have been pushing to get CFD in SIPPS but its the inland revenue who have to approve.

 

[Scripophilist]

There are moves afoot to consider residential property in SIPPs but at the moment you are still limited to commercial property.

 

[RogerM]

A useful additional feature with ODL securities ( I use them for UK FTSE index option trades) is that MyBroker comes for free if you do at least one on-line transaction each month - not an onerous requirement I would have thought.

As scripophilist has pointed out, property transactions are limited to commercial property - residential doesn't qualify. That includes residential lettings (student lets, holiday lets etc). Factories and offices qualify, and if there is a small residential element ( a caretakers flat for example) this would not disqualify the transaction.

 

[JonnyT]

Of course CFDs do not attract Stamp Duty. I cannot see the IR letting a SIPP provider get away with this!

JonnyT

 

[Oldun]

There are moves afoot to consider residential property in SIPPs but at the moment you are still limited to commercial property.

I thought so too but according to the ODL securities site http://www.odlsecurities.com/ residential investment property is now permissible.

Must speak to them tomorrow but they are rather expensive.

 

[seancass]

Dear Oldun,

The whole matter of SIPPS is fascinating. Even with moderate trading ability we should be able to outperform the institutional fund managers!

I have had a look at the SIPPS information (not in detail yet) at ODL and if I read them correctly they are quoting a flat fee of £540 per year with unlimited trades thereafter. On the basis that other brokers are quoting £9 - £12 per trade it seems to be a good offer. What do you think?

Sean

 

[Oldun]

Sean,

I think the £540 is an admin fee but I may be wrong.

If it covers all brokerage commissions it could be good value.

I'll have a more detailed look later.

 

[Oldun]

RogerM

MyBroker comes for free if you do at least one on-line transaction each month

Roger, is Sean correct in thinking the fee of £540 covers all costs including commissions?

Oldun

 

[RogerM]

Oldun - sorry can't answer that one. I don't have a SIPP. But if you have an ODL trading account it includes MyBroker for free. Not sure whether this covers trading in SIPPS tho'.

 

[Mayfly]

Oldun,

I have a SIPP, although with a different trustee and broker. The administration charges do not include brokerage fees or commissions and I am sure that you’ll find that they are kept entirely separate.

Nice try though

Regards

Mayfly

 

[Naz]

The great thing i would have thought about cfd's in a SIPP would be the chance to go short.As someone said its all down to the Inland Revenue.I dont see any reason why they shouldn't allow it.

 

[Trader333]

I believe the reason why they wont allow it is because on any short trade the potential loss is unlimited. This is not the case on long trades where your maximum loss is limited to the total value of the share portfolio if it were to fall to zero.


Paul

 

[jls483]

You mentioned EPML/comdirect and I just wanted to added that I use this combination. comdirect are a well known broker with all the bells and whistles with a reasonable commission cost of £12.50 although not the best.

EPML are highly efficient, very reasonably priced and also rather friendly if you ever need to speak to them!

John.

 

[seancass]

I spoke with ODL this afternoon. The £500+ is a flat fee for the year and after that any Nasdaq trades, for example, cost $15.95. Good try though!

E Trade looks promising, particularly if they are thinking of introducing CFD trading to SIPPS.

Sean

 

[Rainmaker]

I have had a comdirect sipp since january and consider it very cost-effective and easy to use.

 

[seancass]

Rainmaker,

Thank you for that. What is your trading pattern within the SIPP? Do you place a trade, say, every couple of days and do you use day/week time intervals to monitor trades and to watch the trend of the stock?

Best wishes,
Sean

 

[timcatapult]

First Post.
Use my Sipp Trustees IPM First Rate & Broker ODL Very Good.
What you can or cannot do through a SIPP depends on the 'Wrapper' and of course the broker. e.g Hargreaves Lansdown will act as Trustee and you could trade shares but they do not offer futures.
I think you will find you cannot trade CFD or Spread Betting through a SIPP I think this is because they are not LIFFE derivatives.

IPM Personal Pension Trustees based in Ware have just suggested ADM as brokers for US stocks/futures/options am currently looking at their offers.
Any one experience of them. With ODL cannot trade Dow Futures on Line only by phone - resticting if wish to deal intraday.

Trust not advertising too much.

Interactive Brokers don't operate such accounts just tried them today.
Understand MAN Direct will also take a SIPP account.

 

[timcatapult]

Furthermore. One can now switch a Managed Pension Fund (mine was originally with Axa/Sun Life with the normally cost/loss to me)
To a SIPP - funds immediately liquid.

 

[seancass]

Timcatapult,

Thank you for the information.

I want to transfer an amount from Norwich Union. Within that sum, approximately 25% of the fund is protected rights. Am I right in thinking that one cannot trade with the protected rights element to a PP? Eh, if that's the case, what happens, I wonder, to the protected rights element?

Best wishes,
Sean

 

[Mayfly]

Sean,

I'm not absolutely sure about this, but I think you find that it'll stay where it is, i.e in your case with the Norwich Union. You'll have to ask them about it.

HTH

Cheers

Mayfly