I have noticed that the spreads are different but using the functionality of platform is there any other difference between spread betting and Forex?
I have noticed that the spreads are different but using the functionality of platform is there any other difference between spread betting and Forex?
Oh you realised that money is made by shut on zero full time spread betters, so the revenue cba pursuing them. The few that that do make money, taking off it spread betting firms' bottom line, are grassed up to HMRC from the firms.
Originally Posted by ;
Yes, of course. Like I said, I think HMRC's view is that SB is unprofitable for the punter and that most of them will lose money. And we agree with that. I believe the HMRC also believe that when a trader has 1 or 2 or even 3 winning years, then the taxation they would be able to levy on his winnings within this time frame would be outweighed by the promise he would be able to earn on his own losses (as anticipated by HMRC) over other years. Therefore, net end result for the nation would be a loss of tax revenue. That is the reason why I believe it is an uphill struggle for yourself as a spreadbetter, and you will be fought by HMRC .Originally Posted by ;
That is all obvious, why are we talking?
But it would be interesting to hear of SB traders who've been taxed or who've tried to be taxed.
Does anyone know something on the issue regarding the MT5 platform? Can there be any difference?
HelloOriginally Posted by ;
I have a notion like targeting a pair with an the greatest positive SWAP fee to buy or sell in a longer time frame best price and keep holding for more time just aiming at the daily positive swap fee because a daily earnings instead of doing quantity of trading trades.
Daily positive swap fee per one lot - NZDCHF $5.6, AUDCHF $4.3,
in case if we keep sufficient capital to go for 100lot and in a fantastic price and retained for more, we might get fixed daily earnings, therefore my question is do we have to cover taxation for this too? Lets state in state like US UK or Australia?
If any professional possess some thought for this?
Rgds
Imdi
Institutions trade things like that, trading the spread etc et al.. Never was my purse.Originally Posted by ;
The tax man won't differentiate with this as much as I could see. It's still earned in the world of lunacy (an accountant's words to me once, lol).
Issue with this idea is any move in the price of the currency pair may easily wipe out any profit in the swap income.Originally Posted by ;
Just take a look at audjpy and nzdjpy this year to date.
Both pairs have higher exchange rates yet the audjpy and nzdjpy have weakened up to 700 and 500 pips between Jan and March.
No such thing as easy money, there's always a trade off.
------
There really do exists real World manners in which you can take advantage of interest rate differentials but there are pros and cons and chances are, any disadvantages will need to be offset by an, indifference element.
Ie. Should you spend your time between a country with low rates and a country with high rates, you can transfer some money to the rate country account and you'd receive the interest rate. You still have the issue of the price of the forex moving against you but if you do not intend to convert back to your low rate currency, as you intend to spend the money in it's own country, it doesn't really matter.