Are you planning to use the Self-Managed Superannuation Fund (SMSF) when trading CFD? Most likely, you have done a lot of Google searches only to get disappointed with your fruitless effort. The subject can be hard to find as there is very little information regarding the topic. Fortunately, we have compiled all the necessary facts and information about Forex Trading CFDs on SMSF.
If you’re asking if you can trade CFD using your SMSF account, then the answer is definitely yes. Plus, this is completely legal and you need not worry about this matter as long as you trade with these things in mind:
- CFD investments are allowed in your Trust Deed
- CFD investments are allowed in the investment strategy
What is SMSF?
A Self Managed Superannuation Fund (SMSF) is not the same as with the Australian superannuation account wherein the trustees can take control of the funds and keep it going on their own. To say it short, investors invest their SMSF according to their investment decisions and don’t ask the help of professionals as a fund manager.
What Are the Requirements to Set up SMSF?
- Become a Trustee
- Make sure you have financial experience and can make important decisions concerning your invested money
- You need to have ample time to research important information and manage your fund accordingly
- You have a budget on other expenses aside from the invested funds. Other expenses include tax, financial advice, professional accounting, and audit
- You are capable of keeping records of your activity and perform an annual audit
What Are The Benefits of Self-Managed Super Fund (SMSF)
1. Tax Benefits
There is a wide kind of tax strategies that SMSF members can freely use. This will help in the growth of superannuation savings as well as lesser tax liabilities. For those trustees approaching the retirement age, this benefit is very helpful.
2. Flexibility, Choice, and Control
One much-known advantage of SMSF is the control and flexibility it gives to its members. With SMSF, individuals are given an overall control on the decisions they make for their investments, instead of relying on a fund manager. SMSF allows its trustees to access international stocks, bonds, investment properties, ASX stocks, fixed interest, CFDs, and a lot more.
With SMSF, you have complete transparency because you take control of your money, especially as to where it is invested. This is very useful to individual trustees so they can set personal goals as well as personally decide on their investments.
4. Low Admin Fees
When it comes to admin fees, SMSF members have a huge advantage as they might save more compared to that retail. This is all because the admin fees are topped instead of basing the fees on the percentage of the overall balance.
Overall, it takes a lot of time and effort to run a CFD using SMSF. Additionally, the costs to establish this is not a joke. Therefore, if you are planning to set up SMSF, it is advisable to consult some professional advice to avoid incurring losses and experience bankruptcy in the long run.