Buying and selling currencies is an increasingly popular way of being able to expand your SIPP and therefore spread out the risk of your investments. Currencies are often seen as an alternative investment as they will commonly move independently of other markets. If you decide to become involved in currencies then it is important to consider the risks that are involved and make sure you apply adequate risk management techniques. It is also a sensible idea to obtain independent bespoke advice due to the complexities of investment.

Foreign markets will often involve a number of different risks than markets within the United Kingdom. You should also be prepared for the fact that in some cases the risks will also be much greater. The types of risks that you should be prepared for include dealing difficulties, settlement and custody practices. When it comes to making a profit or loss from these transactions you should remember that this will be greatly influenced by the fluctuations of foreign exchange rates.

In all areas of trading you should be very aware of the risks involved and alternative markets are no different. It is advisable for you to obtain independent bespoke advice when considering dealing with foreign markets and investments. SIPPs.org.uk provides responsible consideration of investment.