I’ve gone over this forum and can’t seem to find a thread dedicated to Spread Betting Firms. (If I’ve just missed it please let me know).
Is it true that in order to get tax-free trading status (for UK/AU residents), you must trade through a spread better like IGIndex or WorldSpreads, and not a broker? I know in Australia that if I use IGMarkets (CFDs) I have to pay capital gains tax, but if I use IGIndex (Spread Betting) I don’t (this may change in the future but the ATO have not ruled on this as yet). I’ve used both and I can’t really tell the difference apart from they both slip you during news time.
Anyway, for those UK/AU residents, I’m interested in understanding the Pros and Cons of each platform. Like I said I currently use IGIndex and it’s ok apart from news time.
Hi Jason, I have an account with Finacial Spreads and Tradindex here in the U.K. The only problem I think youll find with them for trading fx is their stop loss margins, tradindex for instance require a minimum 75 pip margin, which is no good if you are day trading and only want say a 10 point stop loss, Iam new to fx and will be looking for a fx broker if i am to trade seriously, I dont know if you can recommend one?
Mike U.K.
I am relatively new to FX trading and I assure you I’m not interested in gambling my money away. As I explained before, I’ve used IGmarkets and IGindex and they are virtually the same thing (same platform).
Legally, if I use IGmarkets I am trading and paying tax, but if I use IGindex I am gambling and not paying tax, however, I’m using the same technical analysis techniques and charting packages for each method. I guess I can’t really understand why anyone would want to pay tax just so they could call themselves a trader. Am I missing something here?
I guess it depends on your point of view and the country you live in.
Here in Canada, gambling winnings are also tax-free. However, although I haven’t done any research on it, I would think that such “financial gambling” would be illegal here, since financial markets are regulated quite well.
In the U.S., I believe traders are taxed differently depending on how they choose to designate their income on the tax form.
In the U.K., it seems to be different.
It’s not a matter of wanting to be called a trader, it’s more a matter of what works best where you live and what you, personally, prefer. Myself, I would rather deal with a brokerage firm than a gambling house.
As for avoiding taxes, I can see why that would be a concern, especially in the U.K. However, if you’re making good money, then I would think that you can take advantage of the tax reduction strategies that are available to higher income earners. I don’t see the point of using a gambling firm instead of a brokerage house just to avoid taxes.
Worldspreads lowest spreads ive seen with a spreadbetting firm.
just a side note, spreadbetting firms only tend to allow you to trade up to 21.00 gmt time. meaning if you wanted to adjust positions in the evening is tough.
2nd point is the min trade is �1 per point if you can live with that then they are good, they also do demo accounts.
Ive traded with saxobank and am looking at oanda at the moment, they have spreads that looks the lowest ive seen.
Firms like IG are not gambling sites. The big banks like Barclays also offer spread betting accounts. If spread betting is gambling then every trader in the city is a gambler too. They are doing exactly the same thing, with the same format.
Hi,
If you got another forum Trade2Win , they have a spreadbetting section including rating , i have recently moved from igindex to smartlivemarkets as they offer mt4, i am based in UK.
Cheers
Mark
If you are going to use a contracts for difference company (‘spread betting’), I have had good results with IG Markets. The spreads are highly competitive on major indices (e.g. FTSE, Dow, Aus200) and also on currencies.
Over the past month in all the volatility for example, our AUS200 fund posted 100% return using spreads on IGMarkets from the August low to today. Transactions costs are only the spreads, so it can work out nicely. This was a strategy based on classic PA using candlesticks on M15, predominantly long only with shorts only to profit / hedge on retracements.
We’re intending to take this strategy onto other accounts, potentially will continue with IGMarkets but also considering others like AAAFX.
I also used WorldSpreads to take advantage of their zero spreads before they go bankrupt despite many people advising me not to go for them, I paid a price for my mistake. I have been using Capital Spreads and IG Index since then and I’m quite happy with them… For a list of the best reputable regulated Spread Betting brokers you can use this comparison table I found in some trading forum: Top Spread Betting Companies | Compare Spread Betting Accounts