CFDs (CONTRACTS FOR DIFFERENCE)
CFDs are high-risk investments.
Being unregulated by the FCA, SIPP investors looking at CFDs are supposed to be High-Net-Worth Individuals and Sophisticated Investors to invest, but often, financial advisers have been found to have waived the rules in order to earn fees from pension transfers.
Because of this, some may be able to make claims.
WHAT ARE CFDS?
Instead of actually investing “IN” the stock market by buying up stocks and shares, CFDs allow people to “bet on” the stock market instead.
If you want to get technical about it, CFD trading is where you buy into derivative products that allow the investor to trade on the market as it happens, without ever owning the underlying products on which the contract is based upon.
Its a bit like handing money to somebody to choose bets for you, and because of the way they are set up, you could actually lose more money than you bet in the first place.
Did you invest your pension this way?
Then you may have a claim…