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Frequently Asked Questions


What instruments do you use to trade?

Henderson Rowe Derivatives use Contracts for Difference (CFDs) to trade long and short on UK, US and European equities, commodities and foreign exchange.

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What is a CFD?

A Contract for Difference (CFD) is an agreement between two parties to settle, at the close of a contract, the difference between the opening and closing prices of the contract, multiplied by the number of underlying assets specified in the contract. In basic terms a CFD is an instrument that allows you to trade long or short (profit from the market going up or down) in a number of different asset classes.

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What are the benefits of using CFDs?

CFDs are low cost and tax efficient. They allow you to trade on leverage, long or short, and are as simple to trade as normal equities.

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What are the tax implications of trading CFDs?

CFDs are exempt from stamp duty. Any profits on CFDs may be subject to CGT (Capital Gains Tax), but losses may also be offset against CGT.

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Do I still receive dividends when trading CFDs?

Yes, cash adjustments are made to your account to reflect the dividend. If you are long of the stock you will receive it, if you are short of the stock the dividend is deducted from your account.

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What makes your service unique?

As far as we are aware we are the only CFD trader that offers a live track record to our clients and prospective clients. Our trade selection and risk management processes are robust and well defined and we are confident enough in the system to provide complete transparency about our trades.

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Is this a fund?

No. All clients funds are held in segregated accounts so that they receive the maximum protection of the FSA.

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If it is not a fund then how do you place the trades?

We compile our trades and then pool the orders so that they are executed at one price for all of our clients. Then the order is split across all accounts according to their expected level of exposure.

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Can I place my own trades?

Henderson Rowe are happy for you to trade on the account yourself and additional profits or losses will be deducted or added when calculating the performance fee so that your own trades aren't reflected in this calculation. If you will be trading regularly alongside us then we can even set up a sub-account to keep the traded funds separate.

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Can I come to you for advice with my own ideas?

Absolutely. Henderson Rowe Derivatives encourage as much communication as possible with our clients. We are more then happy to discuss your own ideas with you, provide technical analysis where possible and even place the trades for you if you so wish.

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How do I monitor my account?

There are a number of ways that you can follow the progress of your account depending on your own preferences. We can maintain regular telephone contact to keep you informed, send out daily statements to your email address or even give you full access to a Level 2, direct market access trading platform.

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Can I trade with a SIPP or SASS?

Yes you can, however, we would advise you to consider your/your clients circumstances very carefully and we would suggest that you only use a very small percentage of the SIPP or SASS if it forms the majority of the retirement fund.

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What are the risks?

CFD trading is defined as high risk because it is a leveraged product. It is possible to lose over and above the initial amount invested when trading such instruments.Henderson Rowe adopt a relatively low risk strategy for trading CFDs. We limit our downside risk to 5% of the account per trade, however, our stop losses are not guaranteed and therefore if a company that we are trading went bankrupt overnight then you would be liable for the full size of the trade, even if it is more than the money held on the account. Henderson Rowe only trade main market companies (FTSE 100 and the larger European and US stocks) so the odds of one of these companies going bankrupt overnight are minute. We always trade with stop losses so trades that gap past our stop losses would be closed at the first available price the next day.

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How much leverage do you use?

Using CFDs to trade equities we can in theory leverage up our trades by 20 times (e.g. Have £2 million pounds in the market on a £100,000 account). Henderson RoweDerivatives have strict risk management tools in place to ensure that trade sizes reflect the money on account. Typically a £100,000 account would usually have between £0 and £500,000 in the markets at any one time but this figure could be exceeded

What is a margin call?

A margin call is a situation where you do not have enough money on your account to cover the deposit you require to keep your positions open due to over exposure (overleveraging).

What are Henderson Rowe's charges?

Charges vary depending on the type of account you open and the level of funding. Please contact us and we will be happy to discuss these with you.

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Click here to review our Risk Warning Notice