Question for UK traders
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Thread: Question for UK traders

  1. #1
    Just wondering whether there are any UK based traders out there using Currency Market brokers rather than spread betting? If that's the case, do you understand what the tax impliions are in the UK with utilizing this method?

    I currently spread wager, but can see a few advantages of brokers. But, I am keen to also gauge the disadvantages of shing.

    Cheers beforehand.

  2. #2
    Hello

    I always found it was cheaper to pay the tax Compared with spreadbetting companies, my Adventures with SB were not good

    Cheers

  3. #3
    But is it considered as income (and consequently liable to income tax) or capital profits (and consequently liable to CGT)... or is it considered something else?

    Cheers for the help.

  4. #4
    Ah, just managed to obtain this on CMCs site...

    if you trade our Forex product you are liable to capital gains taxation. But if you Spread Bet on currencies all profits are exempt.

    ... so assuming you are capable of trading and'd annual profits larger than the #8800 exemption amount for 06/07 (and also are/went to the high tax bracket) you would be paying 40% tax on all profits (over #8800).

    Say you were in the high tax bracket, made 200 pips per month and bet #10 each stage. Profits annually would be 24k and you would cover 6k in taxation over.

    I understand the advantages of Currency Market trading on spread gambling, but that is a significant chunk to be giving up!

    Lets see a show of hands. Who is using spread gambling and who is using a Currency Market broker?

  5. #5
    Quote Originally Posted by ;
    ....

    Lets see a show of hands. Who is using spread gambling and who's with a forex broker?
    70 percent of my transactions are spreadbet.
    That I spreadbet spot just, on rolling contracts for a maximum of two roll-overs
    I dont perform the futures spreadbet since I only find them hard when making trade decisons about the metatrader spot price.

    So I use fxcm (for my sins) for trade choices whom I intend to have a longer time period on.

  6. #6
    Don't think u might autotrade via spread betting companies. IMO autotrading is the only means for me. Also the platforms are very dangerous, if u have'fat fingers' u may be in serious trouble....

    Cheers Charlie

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