Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Was an answer to a previous question....there were stories in the past of them closing accounts/winning trades at will...think in the past the industry was a bit like the wild west! But more regulations now at least
I know, I was trying to allude to the fact that they might be earning money in other ways as well. It seems things are different now, but in the good ol' days, you couldn't get out of your positions when you wanted to (read: if very profitable), and so you had to call your order in. It's hard to make money under those circumstances...
Why anyone prefers to stray from the exchange eludes me...
There have been some very sensible replies already suffice to say you are probably going to get torn a new one trying to do what you have stated, not because cmc or anyone else will ban you ( it used to be practice amongst sb firms but isnt applicable now)
As I am UK based and trade mainly via SB firms I can tell you that yes it is perfectly possible if you are a good experianced trader to trade say a 5 min chart and make money with SB firms depending on the instrument and size you are trading. You should do some propper reaserch into how these firm make their prices and run the books before deciding on if this is something you want to pursue.
You should also enquire as to what sizes are auto filled and which are passed to dealer, do not accept that this will be the same across all markets and in all conditions, they are able to change this at their want.
You should if you are going to be successfull as you think and potentially over smaller timeframes discuss what your planning to do with your rep at the broker, if you are honest with them they will be with you. I can assure you they have some very very large individual clients who are trading substantial sizes without any isssues, if you are large enough they will allow you special spreads and terms. They may also, should you be good enough, follow your positions. I dont mean they will outright place the same trades in the actual market as thats not how they operate but they will weight their book a certain way.
As for the tax free element of spread betting.....if it is your main source of income then you are classed as a professional gambler and taxed just the same as anyone else
Rassi - the issue of freedom from tax for full-time spread-betters has been the subject of hot debate on other forums. I thought it was the case that professional gamblers are not liable for tax. Are you saying that they are and that a spread-better is as well? Is this your personal experience?
Incidentally, one broker has issued a definitive statement saying that full-time spread-betting is NOT taxable and that they have taken expert legal counsel on the subject.
Just going on the advice of my accountant, i think its to do with main source of income, not an issue for me as i run another busniess as well and trading provides my savings / purchasing funds.
My accountant might be wrong but not much i can do about that!
The legal issue with CGT in the UK is whether the income is your main source of income (e.g., in financial size rather than if you have another job that you would just consider your day job - tax man will be very strict on that point) If you're trading/investing.
But for betting CGT doesn't apply (main income or not), and I believe there is a legal precedence on this. If you lok on HMRC's website they do state that all forms of 'betting' are exempt, however they do not specifically mention 'financial spread-betting', but many providers in this market do operate under that basis. Of course, both they and I would advise you need to seek out your own legal advise to confirm for yourself, as there is a lot of confusion on this point.