Trade Forex via Spreadbetting?

Beginner Questions
1

Hello Baby Pipsers!,

I have been trading on a demo account for about 3 months and about to go live with my own hard-earned. Whilst demo trading I have been trading forex via spread betting.

Does anyone else trade Forex this way. If not, why? Are there any major reasons why I should or shouldn’t trade Forex in this way?

Many thanks for all input,

…

2

I use the spreadbetting on Oanda since they started offering the service a few months ago. Works exactly the same in practice as when I was using their Forex trading service. Assuming that you’re a UK or Ireland resident it makes sense to use spreadbetting in my opinion given that your earnings are tax free. Or at least tax free up to the point where you have another primary source of income - after that it gets a little hazy in Ireland at least and you’d probably want to talk to a good accountant. My trading account balance isn’t at that point yet so for now I’m enjoying my tax free status.

3

Thanks for the feedback. I am in the UK and thought that was the case re Spreadbetting currently being tax free. I’m using IG’s online platform. I use a Mac so can’t use MT4.

4

Dear;

I am not the person to talk about taxes, but I have another point to clarify.
you said "hard-owned money"
I understand from that you are going to open relatively large account with your life savings

DON’T DO IT.

Broker’s salesman will push you to open large account, they need your money (especially the market-makers brokers) just say no,

Forex can eat up your whole account within days, using wrong money/risk management with high leverage under high volatility, it will give your nerves a twist.

Start small, 500$ or 1000$ no more.
Do another month or so with real money but small, then go gradually higher.

Remember Forex is not about dollars, It is about percentage, how much gain or lose you add to your capital per week or month.

If you succeeded to sustain constant profit week over week, believe me that 1000$ could turn into millions in 4to6 years., so no need to put huge amount in your account (risk wisely)

1- good analysis
2- risk management
3- remain patient,
4- trading is balance between fear and greed, you need both but stay in the middle (this one you feel in real money like never before)
5- you will win trades and you will lose trades, the emotional injection after every trade is immense, specially the first year, Don’t marry the trade, learn how to bounce wisely.

Best of my wishes, good luck