Once you have a found a SIPP broker or SIPP
provider and funded your account, trading a SIPP is not
dissimilar to trading on a standard account that may be held with a
broker.
The main decision required around trading is the choice of
investment product with the most popular options being a futures
trading account, CFD or Forex
account. All three accounts allow direct market access (DMA) to
the world's financial markets and put you very firmly in control of
the products you wish to trade.
Futures trading through a SIPP is popular with those wishing to
trade on the world's indices or interest rates and trades are
normally transacted across any one of a dozen automated trading
platforms that show the trader the depth of the underlying market
as well as providing the trader with useful news and charting
information about the markets they are trading. Futures trading can
be volatile and is certainly not for the faint hearted with large
gains or losses possible in extremely short periods of time. It
would probably be safe to say that those looking for a lower risk
approach should probably avoid this product.
CFD SIPP
trading is a favourite of those who are familiar with individual
shares and are interested in trading stocks from around the world.
Most brokers who offer CFD SIPP accounts will also offer
direct market access allowing traders to see the actual underlying
exchange together with the market depth. This can prove
particularly useful for those traders wishing to trade using
momentum strategies. In addition to market access, brokers will
also often provide news and charting package services to assist
with trading decisions.
Forex SIPP trading is again at the
volatile end of the trading spectrum but for those wishing to take
a view on the worlds currency markets there is a host of easy to
use trading platforms that provide access to these potentially
rewarding markets. The majority of business is transacted across
the Major currency pairs and so Forex SIPP traders should look for
providers and brokers offering a highly commercial offering for
these as well as a consistent price feed to ensure trade execution
is instant.