Advice please - SB v Brokerage re Forex

Hi there,

I have been trading FX for approx. 6 months via Deal4Free and IG.

Are there any benefits over above types to using instead IB or a FX specialist brokerage - if so, what do you recommend ?


Cheers.
Vegas

Hi vegas

spreadbetting forex is advantageous over trading with a retail forex broker, or trading forex futures - in the sense that profits are free from capital gains tax.

Specialist retail forex brokers are naturally likely to offer a specialised and more advanced forex trading service. This may include more/more advanced order types, full auto dealing with no dealer intervention, instant executions, no slippage, no requotes etc.

Both spreadbet and retail forex brokers are marketmakers (they make their own market) and profit from a clients losses. Some may call this a conflict of interests.

CME Globex forex futures on the other hand are a regulated, transparent exchange based market.

Cheers

jtrader.

Have a look at the advantages and disadvantages of forex trading and spreadbetting here.