Equities
The multi award-winning platform enables our clients to trade over 19,000 equities across multiple global exchanges.
Our personal service ensures that each client is assigned his or her own broker regardless of the bespoke service they choose.
Our dedicated brokers are on hand to help guide our clients every step of the way from:
◦ Creating a unique investment and/or trading strategy;
◦ Informing of actionable equity ideas;
◦ Proactive on-going monitoring of open positions;
◦ Regular portfolio reviews
Key Features of CFDs
Go long or short
You can go long (buy) a CFD, allowing you to profit from rising prices, or short (sell), allowing you to profit from falling prices. If you think a market is set to rise, you go long (buy) at the higher offer price. If you think the market is set to fall, you go short (sell) at the lower bid price.
Direct Market Access (DMA)
You can trade live prices by trading directly into the underlying order book of global exchanges. Your orders are sent straight to the exchange and you can trade inside the market spread. DMA also allows you to participate in opening and closing auctions.
24-hour access
Unrestricted view only access to your account 24 hours 7 days a week.
Fast execution
The multi-award winning online platform provides live prices and you can open and close positions at the click of a mouse.
Low commissions
Typically lower commission rates compared to traditional equities.
Suitable for short-term trading
CFD margin and their low cost attributes enable you to potentially capitalise on short-term market volatility.
Wide range of markets
You can trade CFDs on a huge range of markets, including: shares, indices, commodities, options, forex, interest rates and many more.
Professional risk management
Use stop losses, limit orders and contingent orders, such as ‘one cancels the other’ (OCO) and ‘if done’.
No fixed time period
CFDs don't have an expiry date so you can keep positions open as long as you want provided the margin requirement is met. Overnight funding charges apply.
Trade on margin
Meaning you only have to put down a small deposit of the total value of the investment.
No stamp duty
A CFD is a derivative product which has a value based on an underlying asset. Therefore, the investor never actually owns the underlying asset, which means there is no stamp duty to pay.
Tax efficient
Depending on your circumstances, you can use any losses you incur to offset against your capital gains tax (CGT) liabilities.
CFD Examples
Example 1: An Equity CFD trade
In this example we show an equity based CFD trade.
The share price of Barclays is 220. We believe that the share price will rise and so decide to take a long CFD position. The market price is 219.80 bid and 220.00 offered.
| Buy 100 Barclays CFDs at offer price | 100 x 220.00 = £22,000.00 |
| Margin deposit requirement (open position x margin %). In our example, Barclays CFD is 5% margin | £22,000.00 x 0.05 = £1,100 |
Outcome A: winning trade
The next day Barclays share price has risen to 225.00. The market price is 224.80 bid and 225.00 offered. The trade has moved in our favour and we decide to close the position and take profit.
| Sell 100 Barclays at bid price | 100 x 224.80 = £22,480.00 |
| The position is now closed and so the margin requirement is now zero | 0 |
| Gross profit is the difference between the value of the opening and closing positions | £22,000.00 - £22,480.00 = £480.00 |
The above example does not include commission and financing charges.
Outcome B: losing trade
The next day Barclays share price has fallen to 215.50. The market price is 215.20 bid and 215.50 offered. The trade has moved against us and we decide to close the position and take a loss.
| Sell 100 Barclays at bid price | 100 x 215.20 = £21,520.00 |
| The position is now closed and so the margin requirement is now zero | 0 |
| Gross loss is the difference between the value of the opening and closing positions | £22,000.00 - £21,520.00 = -£480.00 |
The above example does not include commission and financing charges.
Example 2: An Index based CFD Trade on the FTSE 100 Index
In this example we show an index based CFD. The FTSE 100 Index is at 6199. We believe that the Index will go down and we decide to take a 'short' position. The market price is 6199 and 6200 offered.
| Sell 10 CFDs at bid price (£10 per index point) | 10 x 6199 = £61,990.00 |
| Margin deposit requirement (open position x margin %). In our example, FTSE 100 CFD is 0.5% margin | £61,990.00 x 0.005 = £309.95 |
Outcome A: winning trade
The next day the FTSE 100 has fallen to 6130. The market price is 6129 bid and 6130 offered. The trade has moved against us and we decide to close the position and take a loss.
| Buy 10 FTSE 100 CFDs at offer price | 10 x 6130 = £61,300.00 |
| The position is now closed and so the margin requirement is now zero | £0 |
| Gross profit is the difference between the value of the opening and closing positions | £61,990.00 - £61,300.00 = £690.00 |
The above example does not include dealing costs and financing charges.
Outcome B: losing trade
The next day the FTSE 100 has risen to 6268. The market price is 6267 bid and 6268 offered. The trade has moved in our favour and we decide to close the position and take a profit.
| Buy 10 FTSE 100 CFDs at offer price | 10 x 6268 = £62,680.00 |
| The position is now closed and so the margin requirement is now zero | 0 |
| Gross loss is the difference between the value of the opening and closing positions | £61,990.00 - £62,680.00 = -£690.00 |
The above example does not include dealing costs and financing charges.
Key Features of Options
Go long or short
Buying a call option allows you to profit from rising prices, whilst buying a put option allows you to profit from falling prices.
Live streaming prices
Trade on live streaming prices for full transparency.
24-hour access
Unrestricted view only access to your account 24 hours 7 days a week.
Fast execution
The multi-award winning online platform ensure live prices and you can open and close positions at the click of a mouse.
Low volume based commissions
The more you trade the lower the cost-per-trade.
Trade on volatility
Position yourself in rising, falling and sideways markets.
Suitable for short-term trading
Trade on margin and competitive premium cost enable you potentially capitalise on short-term market volatility.
Wide range of markets
You can trade options on a huge range of markets, including: shares, indices, commodities, forex, interest rates and many more.
Time frames to suit you
Daily, weekly, quarterly options available.
Professional risk management
Use options to hedge against potential downside risk in both your current profitable position or in the value of your physical portfolio.
Trade on margin
Meaning you only have to put down a small deposit of the total value of the investment.
No stamp duty
An option is a derivative product which has a value based on an underlying asset. Therefore, the investor never actually owns the underlying asset, which means there is no stamp duty to pay.
Option rights
The option holder doesn't have any rights associated with the underlying asset, such as voting or dividend rights.
Tax efficient
Depending on your circumstances, you can use any losses you incur to offset against your capital gains tax (CGT) liabilities. Please seek independent financial advice.
Options Examples
Example 1: Buying a CALL option
Barclays is trading at 300p a share. Mr Smith feels it is undervalued here and would like to get some long exposure with limited risk. He wants to buy 5000 shares in Barclays with limited risk so decides to buy 5 contacts of the At The Money, front month X300 CALL options for a premium of 10p. Total premium paid is £500 (5000 x 10p).
Possible Outcomes
Outcome A:
Barclays issues an extreme profits warning and the share price falls to 200p. At expiry Barclays is trading lower than the strike price so Mr Smith discards the option losing the total premium paid. Total loss £500.
Outcome B:
A major US bank comes in with a takeover offer for Barclays and the share prices rockets to 400p. At expiry Mr Smith has the right to buy Barclays for 300p so will exercise the option. Mr Smith now takes delivery of the shares paying 300p for them and sells them in the open market for 400p giving a total profit of: 400p (current price) - 300p (strike price) - 10p (premium) = 90p. 90p x 5000 = £4500.
Outcome C:
Barclays has a quiet month and at expiry is trading at 307p. Mr Smith will still exercise the option as it is in the money but not cleared the premium paid. Mr Smith takes delivery of the shares paying 300p and sells in the market for 307p giving a total loss of: 300p (strike price) + 10p (premium) = 310p paid. 310p - 307p = 3p. 3p x 5000 = £150 total loss.
Outcome D:
Barclays shares move up to 330p and Mr Smith feels they will not go any further so decides to close the option out. The options premium has increased to 38p as it now has 30p intrinsic value but slightly less time value. Mr Smith closes the option and realises a profit of: 38p - 10p (premium) = 28p. 28p x 5000 = £1400. Options on CFDs will be cash settled as shares are not deliverable.
The information given is for European style options.
The above example does not include dealing costs.
Example 2: Buying a PUT option
Barclays is trading at 300p a share. Mr Jones feels it is overvalued here and would like to get some short exposure with limited risk. He wants to short 5000 shares in Barclays with limited risk so decides to buy 5 contacts of the At The Money front month X300 PUT options for a premium of 10p. Total premium paid is £500 (5000 x 10p).
Possible Outcomes
Outcome A:
Barclays issues an extreme profits warning and the share price falls to 200p. At expiry Barclays is trading lower than the strike price so Mr Jones will exercise the option. Mr Jones has the right to sell Barclays at 300 and can buy them back at 200p giving a profit of: 300p (strike) - 10p (premium) - 200p (current price) = 90p. 90p x 5000 = £4500.
Outcome B:
A major US bank comes in with a takeover offer for Barclays and the share prices rockets to 450p. At expiry the option will be out the money so Mr Jones discards the option losing the total premium paid. Total loss £500.
Outcome C:
Barclays has a quiet month and at expiry is trading at 293p. Mr Jones will still exercise the option as it is in the money but not cleared the premium paid. Mr Jones has the right to sell Barclays at 300p and can buy them back at 293p giving a loss of: 300p (strike) - 293 (current price) = 7p. 10p (premium) - 7p = 3p. 3p x 5000 = £150 total loss.
Outcome D:
Barclays shares move down to 270p and Mr Jones feels they will not go any further so decides to close the option out. The options premium has increased to 38p as it now has 30p intrinsic value but slightly less time value. Mr Jones closes the option and realises a profit of: 38p - 10p (premium) = 28p. 28p x 5000 = £1400.
Options on CFDs will be cash settled as shares are not deliverable.
The information given is for European style options.
The above example does not include dealing costs.
Key Features of ETFs
Low cost structure
ETFs are passively managed by tracking an index meaning fewer transaction costs, low management fees and no stamp duty.
Efficient portfolio diversification and risk management
Get a balanced portfolio with a basket of diversified securities through a single product and gain underlying exposure to a variety of asset types such as stocks, bonds, indices, commodities, forex.
Better market access
Get direct access to markets, regions, sectors and asset types that are otherwise hard to reach through individual securities.
Simplicity
Create a portfolio via a single transaction compared to several trades in individual equities.
Increased transparency
See the individual instruments your ETF holds. ETFs also trade on public stock exchanges, so you can track their performance and trade throughout the trading day.
Alternative to mutual funds
ETFs typically have higher daily liquidity and both lower fees and capital gains tax liabilities than mutual funds.
Established and fast-growing market
Join a mainstream industry with over $3 trillion of assets under management.
Tax efficient
ETFs are structured for tax efficiency so investors only realize potential capital gains tax when they sell. ETFs can be shielded from capital gains tax by placing them in a SIPP or ISA account.
Trade on margin
Leveraged ETFs utilize derivatives meaning you only have to put down a small deposit of the total value of the investment e.g. a 2X gold ETF would gain 2% for every 1% gain in the price of gold. It would also lose 2% for every 1% move in gold.
Go long or short
Inverse ETFs track the opposite return of that of the underlying asset allowing you to profit from falling prices e.g. an inverse gold ETF would gain 1% for every 1% fall in the price of gold.
Suitable for short-term trading
Their low cost structure and ability to trade on margin enable you to potentially capitalise on short-term market volatility.
ETF Examples
By the end of 2015, ETFs offered over 1,800 different products, covering almost every conceivable market, region, sector, asset type and trading strategy. For a list of the most popularly traded ETFs, please click here.Forex
The multi award-winning platform enables our clients to trade a broad range of major, minor and exotic currency pairs in micro lots or market sizes.
Our personal service ensures that each client is assigned his or her own broker regardless of the bespoke service they choose.
Our dedicated brokers are on hand to help guide our clients every step of the way from:
◦ Creating a unique investment and/or trading strategy;
◦ Informing of actionable forex ideas;
◦ Proactive on-going monitoring of open positions;
◦ Regular portfolio reviews
Key Features of Forex
Why trade forex?
Forex trading enables you to actively speculate on the relative strength of one currency against another. You can potentially profit by actively speculating on which way prices are likely to move in the future.
Go long or short
You can go long (buy) or short (sell) in the forex markets. For example, you can buy euros and simultaneously sell US dollars if you think the euro is destined to increase in value against the US dollar, and visa versa.
Wide range of markets
Trade a broad range of majors, minors and exotic currency pairs in micro lots or in market sizes.
24 hour trading
Open 24 hours a day from Monday to Friday.
Large liquidity
The largest financial market with daily cumulative cash values in excess of US$5.5 trillion per day providing deep liquidity and tight spreads.
Ease of access
The large number of participants and cumulative quantity of currency traded means it’s a very easy market for anyone to access.
Trade on margin
Meaning you only have to put down a small deposit of the total value of the investment.
Suitable for short-term trading
Trade on margin and with low spreads enables you to capitalize on short-term market volatility.
No stamp duty
Forex CFDs mean there is no stamp duty to pay.
Direct Market Access (DMA)
Full market transparency and trade live prices.
Low spreads
Spreads from 0.8 points on major FX pairs.
Low volume based commissions
The more you trade the lower the cost-per-trade.
Sharp execution
The multi-award winning online platform ensures your trades are filled with optimal accuracy and low slippage.
Risk management
Monitor the live exposure of all your assets through our online platform. The sophisticated risk management tools give you an overview of your trading potential by displaying your margin utilization, profits/losses and more in real time.
Multiple order types
Implement your unique trading strategies with access to both simple and more advanced order types. Combine orders such as: market, limit, stop or trailing stop with OCO (one-cancels-the-other) and ‘if done’ capabilities and various order placement requirements.
Forex Examples
Example 1: Buying EUR/GBP
EUR/GBP is trading at 0.84950/0.84960
We believe the price of EUR/GBP will appreciate (rise) and so decide to buy €100,000.
The margin deposit requirement is the total value of the position multiplied by the margin rate of 0.2%.
i.e. ((0.2% x (€100,000 x 0.84955)) = €169.90
Outcome A: winning trade
The price rises to 0.84390/0.85540. We decide to close the long trade by selling at 0.85530.
The price has moved 57 points (0.85530/0.84960) in our favour.
Our profit is ((€100,000 x 0.85530) – €100,000 x 0.84960)) = €570
Outcome B: losing trade
The price falls to 0.84390/0.84400. We decide to close the long trade by selling at 0.84390.
The price has moved 57 points (0.84960/0.84390) against us.
Our loss is ((€100,000 x 0.84960) – €100,000 x 0.84390)) = €570
Example 2: Selling EUR/GBP
EUR/GBP is trading at 0.84950/0.84960
We believe the price of EUR/GBP will depreciate (fall) and so decide to sell €100,000.
The margin deposit requirement is the total value of the position multiplied by the margin rate of 0.2%.
i.e. (0.2% x (€100,000 x 0.84950)) = €169.90
Outcome A: winning trade
The price falls to 0.84450/0.84460. We decide to close the short trade by buying at 0.84460.
The price has moved 49 points (0.84950/0.84460) in our favour.
Our profit is ((€100,000 x 0.84950) – €100,000 x 0.84460)) = €490
Outcome B: losing trade
The price rises to 0.885430/0.85440. We decide to close the short trade by buying at 0.85440.
The price has moved 49 points (0.84950/0.85440) against us.
Our loss is ((€100,000 x 0.84950) – €100,000 x 0.85440)) = €490
Holding costs
If we hold our position past 10pm UK time our account will be debited or credited at the prevailing holding rate.
If we have bought a high yielding currency, then we will generally receive interest.
If we have bought a low yielding currency, then we will generally be charged interest.
The above examples do not include dealing costs.