Twenty Questions
Account opening
1.
How long does an account application take to process?
If you apply online your (temporary) account should be opened within 20 minutes. Online account applications will be confirmed on receipt of your signed confirmation form. Applications by post will be opened on the same working day that we receive your completed form.
2.
What type of account is available with MF Global Spreads?
We are pleased to offer both Standard (deposit) and Credit accounts. If applying for a Standard account the minimum opening deposit is £500. A credit account must be opened using the Credit Facility application form found in our brochure or down loaded here. You are required to provide us with proof of your liquid assets in order to receive a credit allocation.
3.
Do I receive interest on my account?
Yes. At MF Global Spreads we pay interest on all client accounts. You earn interest (based on the current market rate) on all unencumbered funds; that is, money not being used as trading margin. Interest accrues on a daily basis and is credited to your account on the first business day of each month.
4.
I reside outside the UK - can I still open an account?
Yes. To qualify you must have a UK bank account from which you will do your banking with us. You must be a UK citizen, currently on the electoral role and contactable as if you reside in the UK. You may be asked to provide documents confirming your address and identity. It is your responsibility to be aware of any local restrictions that may apply. We hope to be able to offer accounts to non-UK citizens in the near future.
General
5.
Are my profits really tax-free?
Yes. Under current UK law, profits from financial spread betting are free of tax. *
6.
Are there any dealing commissions or other charges payable to MF Global Spreads?
No. The only cost to you is our dealing spread, which is the difference between the selling and the buying price for each market.
There are no fees, stamp duty or brokerage charges. However, for "Daily Rolling Share" bets funding is charged daily for long positions,
and credited daily for shorts.
7.
Do you want your customers to lose?
No. Although we take the opposite side of any bet that you make with us, we hedge this risk in the underlying markets. As our minimum bet sizes are much smaller than the Exchange contract sizes, we may hold residual positions in some markets. It is up to our dealers to manage this risk sensibly. We value our customers and the relationship we have with them, and it is in our interest for their trading to be successful.
8.
At what stage do I receive my profits?
The profit (or loss) from any closed trade is immediately posted to your account. You may request the payment of any unencumbered funds at any stage. Payment is made to you on the same day.
9.
Am I able to send my money to a third party?
Money laundering regulations prohibit us from sending money from a customer's account to any third party.
10.
What should I do if my personal details change?
You must inform us as soon as you are aware of any change in your circumstances or contact details. Please contact us on: enquiries@mfglobal.com or call 020 7114 4090.
11.
How and when do I get contract notes and statements?
For speed, security and reliability we recommend you receive contract notes and statements by email, but we will happily send them by post if you prefer. We will send you a contract note every time you initiate a trade on your account, by the next trading day at the latest. You can choose how often we send you a statement: daily, weekly or monthly. You can also view all your account details in real-time online.
12.
In the unlikely event of a discrepancy in my statement what should I do?
Please contact us immediately. Trading issues should be discussed with our dealers, while our General Enquiries staff can help you with any other matter. Our telephone calls are recorded and all Internet trades give a full audit trail allowing us to check and resolve any problems quickly.
Trading
13.
What are the maximum and minimum amounts I can trade?
We have no set maximums. You will only be limited by the margin you have available on your account or any liquidity constraints in the underlying market. If you want to trade in more than standard market size our dealers will happily work an order on your behalf. The minimum amount you can trade is usually £1 per point.
14.
What are your dealing hours?
Our dealing room is open from 0700 to 2145 (21.15 on Friday). Trading times for individual contracts are detailed in Market Information. You can leave orders to protect your position, take a profit or open new positions outside these hours by arrangement with our dealers.
15.
What happens if I have open positions when I take a holiday?
If you wish to run open positions while you are away you should make arrangements to keep in touch or ensure that you have stops in place to cover any adverse market movement. If we ask you for extra margin on your account, you must be able to get money to us as quickly as if you were at home.
16.
Can MF Global Spreads offer trading advice?
No. We are regulated as an "execution only" service. Consequently we are unable to give you our opinion on which direction a market may go in. However we are happy to provide you with any factual information that may help your trading.
17.
Can I maintain both 'long' and 'short' positions in the same market?
Yes. All accounts are initially set up to close positions on a first-in-first-out basis. However, you can choose to override this setting and decide yourself how your bets are closed.
18.
Is phone trading more expensive than online?
No. We offer the same spread whether you choose to bet online or over the phone. The two services complement each other - if you open a bet online you can close it over the phone, and vice versa.
19.
What are the differences between Daily Rolling Share bets and bets on Share Futures?
The spread on a Daily Rolling Share bet is much smaller than the spread on a Share Future. It is wrapped around the underlying market rather than around the forward-adjusted futures contracts. Funding is debited (for long positions) or credited (for short positions) after the close of business each day. Also, the Notional Trading Requirement is typically half that required on Share Futures.
20.
Can I extend the life of my bet?
Yes. All our bets can be rolled over into another contract period. A rollover consists of closing and settling the original bet, while simultaneously opening a new bet in the next contract at a reduced spread. You can choose to have all your bets rolled automatically, or you can notify us bet by bet. In the latter case, we need to receive your rollover instruction before the relevant last day of dealing.
* Tax laws are subject to change
