Discussion
Has anyone had any dealings with these people
http://www.capitalasset.com/UK.aspx
as they won't leave me alone currently regarding leveraged commodities (mainly metals) trading and I was thinking of using them, however a quick google on them reveals that they've been "watch dogged" which may or may not mean anything! I also don't think they are FSA registered, however they claim to be registered Los Angeles Better Business Bureau (“LABBB”) - which also worries e slightly as I've never heard of them!
Should I risk a few K with them?
http://www.capitalasset.com/UK.aspx
as they won't leave me alone currently regarding leveraged commodities (mainly metals) trading and I was thinking of using them, however a quick google on them reveals that they've been "watch dogged" which may or may not mean anything! I also don't think they are FSA registered, however they claim to be registered Los Angeles Better Business Bureau (“LABBB”) - which also worries e slightly as I've never heard of them!
Should I risk a few K with them?
Genuine question: Why would you want to buy the physical's?
I used to work on a metals trading desk and lots of money is spent on storing, shipping and weighing the stuff! And I do mean weighing, as that 1 tonne lump of steel that you bought is sitting in a warehouse in Argentina and gently corroding away. So when you come to sell it, there's less there than you started with!
Overall transaction costs (and the lack of CGT) means that the likes of IG Markets with CFD's and futures have pretty much negated the need for a commodities broker in the UK for individual clients.
And I love their disclaimer:
[i]Clients should note the following: Trading physical commodities is highly speculative and very risky; the vast majority of investors have lost money trading commodities. Capital Asset and its introducing brokers and affiliates are not regulated by a United Kingdom regulator such as the Financial Services Authority. Customers will have no recourse to UK statutory complaints procedures and compensation schemes.
Past performance is not necessarily indicative of future results. If the particular market in which you invest does not move in your favor, you could lose all or part of your deposit. Clients have a negligible chance of making an overall profit if they always reinvest the proceeds of transactions in new transactions. Therefore, they should always consider withdrawing a substantial percentage of any profitable transaction so as to limit their overall exposure to the markets. Please read disclosure materials carefully before you send money or initiate your first trade.
[/i]
Edited as the flipping italic thing doesn't work.
I used to work on a metals trading desk and lots of money is spent on storing, shipping and weighing the stuff! And I do mean weighing, as that 1 tonne lump of steel that you bought is sitting in a warehouse in Argentina and gently corroding away. So when you come to sell it, there's less there than you started with!
Overall transaction costs (and the lack of CGT) means that the likes of IG Markets with CFD's and futures have pretty much negated the need for a commodities broker in the UK for individual clients.
And I love their disclaimer:
[i]Clients should note the following: Trading physical commodities is highly speculative and very risky; the vast majority of investors have lost money trading commodities. Capital Asset and its introducing brokers and affiliates are not regulated by a United Kingdom regulator such as the Financial Services Authority. Customers will have no recourse to UK statutory complaints procedures and compensation schemes.
Past performance is not necessarily indicative of future results. If the particular market in which you invest does not move in your favor, you could lose all or part of your deposit. Clients have a negligible chance of making an overall profit if they always reinvest the proceeds of transactions in new transactions. Therefore, they should always consider withdrawing a substantial percentage of any profitable transaction so as to limit their overall exposure to the markets. Please read disclosure materials carefully before you send money or initiate your first trade.
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Edited as the flipping italic thing doesn't work.
Edited by apguy on Tuesday 19th August 12:25
I have no great interest in actually owning the raw material and the sales man couldn't give me any particularly strong reason to do so other than some waffle on added security - so what you're saying is that you wouldn't bother with them even if they aren't dodgy?
I guess the plus for them is that they claim to have analysts watching the market the whole time (which I certainly don't have time to do) and that you can gear with them (which you can also do with any spread bet CFD etc.)
I guess the plus for them is that they claim to have analysts watching the market the whole time (which I certainly don't have time to do) and that you can gear with them (which you can also do with any spread bet CFD etc.)
Charlie360 said:
so what you're saying is that you wouldn't bother with them even if they aren't dodgy?
In a nutshell. If you don't want to watch the market like a hawk, perhaps an ETF that follows one of the metal indexes might be more suitable? You can trade ETF's on most of the major spread betting platforms as well.
Edited by apguy on Tuesday 19th August 14:51
Exchange Traded Fund. Wikipedia has a good explanation:
http://en.wikipedia.org/wiki/Exchange-traded_fund
http://en.wikipedia.org/wiki/Exchange-traded_fund
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