FX Trading v Spead Betting

Beginner Questions
1

Hi Guys,

Have started to get consistant results with my FX trading on the MT4 Alpari demo account.

I’m thinking now to go live again. My question is about tax. I don’t mind paying tax on my profits but don’t want to give too much back.

So my question is should I open a FX trading account or a spread betting account?

I havn’t looked at any Spread demos so I’m looking for views from people who use spread accounts for tax reasons.

Regards,

David.

2

Personally I abhor the platforms that Spreadbetting companies use. if you have no problem with that, then spreadbetting is something you should definitely consider.

3

Thanks for your reply. If anybody else has any views it would be good to hear them.

4

hey,

Most will allow you to trade spot and 3, 6 month contracts, the only problem you may find is that the hours are 8am - 9 pm to make / change trades.

a few to look at
igindex
and wordspreads

You will find the spreads tend to be higher on most, although worldspreads will offer you 1 pip spreds on some.

the only other point i will make is you will have a min trade of �1 per point straight away, theres no demoing around on smaller unit size first.

hope that helps.

5

Many Thanks.

6

Is spread betting only for UK citizens or can US citizens do it too? Not that I am interested but I know someone who would be (US citizen)

7

I currently use spread betting for my FX trading for the simple reason all bets stop in base currency, so even if betting on crosses e.g EUR/JPY I don’t have to worry about other exchange rates. The platfom I use also allows me to trade FX 24hrs a day the same as normal platforms.

I must admit however that the charting software is not the best, but to offset that I also use other packages and feeds to ensure I have all the indicators I need and the price quoted is in line with the market. The only other downside is that the bet minimum is �1 per point (approx 1 mini contract) so if your new to trading or have a limited stake try low volatility pairs.

I regards to tax in the UK you don’t pay any income or CGT on profits made but equally cannot write off CGT losses either.