Trading
Benefits
| Product | Benefits of our service | When you might use |
|---|---|---|
| CFDs |
|
A form of higher-risk trading that lets you speculate on falling and rising prices. You trade without putting up the full transaction value, and can use them as part of a hedging strategy. |
| Funds |
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Funds spread your investment over a wide range of assets. As well as spreading your risk, you can buy funds at a fraction of the cost of investing in the individual stocks yourself. |
| ISA |
|
ISAs let you hold different types of investments in a tax efficient account. You get an annual ISA allowance and don’t have to declare ISAs on your tax return. |
| Share Dealing |
|
Share dealing lets you invest directly in UK and international companies which appear on worldwide stockmarkets. |
| SIPPs |
|
Self Invested Personal Pensions let you hold and invest in shares, funds and cash tax efficiently. Normal pension rules and tax advantages apply. |
| Spot Forex |
|
A form of higher-risk trading where you speculate on falling and rising currency prices. You trade without putting up the full transaction value. Use as part of a hedging strategy. |
| Spread Betting |
|
A higher-risk form of trading that lets you speculate on price movements. You trade without putting up the full transaction value, and can use this as part of a hedging strategy. |
Goals
| Goal | Comments | Product |
|---|---|---|
| Profiting from short and long term market movements | Share trading is more typically used as part of a long term investment strategy. CFDs, Spread Betting and Spot Forex let you potentially profit in volatile markets with the ability to speculate on both rising and falling markets. | |
| Protecting your investment portfolio against falls | CFDs and Spread Betting are commonly used as part of a hedging strategy. Trading ‘short’ with a CFD or Spread Bet against your underlying portfolio can offer protection in volatile times. | |
| Investing in emerging markets | You can invest in emerging markets through a range of funds as well as a ready-made selection of funds | |
| Saving on capital gains tax and stamp duty | Spread Betting is currently free of both capital gains tax and stamp duty. CFDs are only free of stamp duty but you can use any losses to offset tax liabilities tax laws may change. | |
| Investing or trading tax-efficiently | Trade within our ISA or SIPP account for tax-efficient trading and investing. | |
| Investing for your retirement | SIPPs are personal pension products and so have the most associated tax advantages. ISA can be used as a tax efficient way to save for retirement |
Risk Level
| Product | Risk | Comments |
|---|---|---|
| Funds | Vary from low to high |
Funds spread your investment over a wide range of assets. This helps you to spread your investment risk. |
| ISA | Vary from low to high |
ISAs let you hold different types of investments in a tax efficient account, giving you the ability to spread your investments and your risk. |
| SIPP | Vary from low to high |
SIPPs let you hold different types of investments in a tax efficient account, giving you the ability to spread your investments and your risk. |
| Share Dealing | Vary from medium to high |
Shares allow you to invest directly in UK and international companies. The risk will vary depending on the individual shares and markets. |
| CFDs | High |
Contracts for Difference carry a high degree of risk as they trade on leverage, potentially exposing you to losses greater than your initial stake. There are wide array of risk management tools available. |
| Spread Betting | High |
Spread Betting carries a high degree of risk as it trades on leverage, potentially exposing you to losses greater than your initial stake. There are wide array of risk management tools available. |
| Spot Forex | Very High |
Spot Forex has a higher risk as it trades on pip movements which can be very volatile and higher leverage is available. It uses margin trading where you can lose more than your original stake but risk management tools are available. |