City Index/IG Markets CFD , Asset Allocation, Forex-Money Changers?

Went out with friends a few days ago and hence decided to go open a City Index CFD account, since it was only 2 MRT Stops away. Deposited a small sum, and the lady that assisted me was very warm. Good customer service. Sat down and discussed how to use CFD, what financing is, when margin calls will occur etc for over 40 minutes. The account just got opened today, and I will maybe try a little CFD's next week, since commissions for SGX counters are $10 flat.

Also went to IG Markets to create a CFD account (2 buildings away). The lady there was very brusque. Even though she was quite pretty. hahaha. However I just received an email stating that

Dear Mr XXX,

Thank you for applying for an account with IG Markets. After assessing your application, we regret to inform you that your application has been rejected.

We seek your kind understanding on this matter as CFDs are highly leveraged products and not suitable for everyone.

Thank you."

Ok then. 

I also went to change for Sterling Pounds at the Arcade, right next to Raffles place MRT, with the suggestion of createwealth8888 and anonymous (thanks!). So many money changers there! Their rates are very good, I wonder how they earn at all. I changed at £1=SGD 2.014, and the mid market rate on that day was £1=SGD2.006. Which means they earn about a 0.7% commission thru the spread. 

For those playing forex (not me), I wonder how's the spread like, since the forex firms earn thru spreads too. If the spread is wider than the money changers, why don't people just buy physical cash and change it? 

Just a thought. The spread's probably smaller than the money changers. 

As I on the bus home after tuition today, I thought of my asset allocation. Just a few tender months ago, my assets were 100% Cash with trusty POSB and OCBC. 

Now, the asset allocation is as such: 

Blue Chip Stocks:

 20.67%

Dividend Stocks: 

24.9%

Penny Stocks: 

7.5%

I think this is a pretty good allocation...Might be putting some more cash into penny stocks though... specifically Silverlake(which I have done some FA for, might or might not post it up), where you can read the FA for it at Wealth Buch's blog: http://wealthbuch.blogspot.com/2010/12/silverlake-axis-part-1.html

Cash:

34.9% Singapore Dollars, 12% British Pound (Dollar Cost Averaging in preparation for uni)

Of Singapore Dollars:

 17.1% is for speculation ( Roughly 5% of my total liquid net worth)

82.9% in Bank rotting at 0.125% at POSB, 0.3% at citibank and 0.7% at phillip MMF (Poems account holders should know).

Of British Pound:

100% in drawer rotting.

Digressing: In a previous post, Wealth Buch mentioned I could try Forex FD, but I'd like to mention here that the forex rates for "cash" is poor.

"cash" is in inverted commas because:

1.) They don't allow you to deposit cash.

2.) They change your Singapore dollars at the bank cash rate, which is super lousy. (Just look at the money section of ST- Under Forex rates; that's what UOB and the local banks charge.)

3.) When your "cash" FD expires, you have to change back to SGD at their cash rate.

4.) You can't withdraw your "cash" in physical money. You got to TT your "cash" to your foreign bank account.

5.) Other than NZ/Aus, the interest rates are so damn lousy, you can't even cover your spread loss!

*End of Digress*

Oops, I think that marks the end of the post too.

Please Comment :)

Happy new year!

Hope it'll be a prosperous and fulfilling year for all!