£10,000 which way is most cost effective?

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mcleod100

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I am considering an investment of £20,000 into futures using swing trading techniques. What is the best way forward? I am already with Deal4free and find them ok but am a little worried about being spiked out of transactions. I know they are tax free.

Can anyone advise any other cost-effective and user friendly routes to swing trading futures.

I normally trade late in the evening and leave bets overnight.

Thanks
Mcleod
 
If youre a new guy and want to get into futures Id look at position trading spreads. Meanwhile you can practice your swing or day trading - which is more risky and has a higher chance of blowing up.

Look at my Eurodollar Madness thread for examples of the profit and ease this method can yield.
 
£20,000

bickerdike said:
Ten grand or twenty?

If you are interested in swing trading, have you seen Marc Rivalland's book, called "Marc Rivalland on Swing Trading" ? It's quite good, in my humble opinion.
Click to expand...


Thanks Bikerdike that should read £20,000
 
£20,000

TheBramble said:
Deja vu maybe with the £20,000 looking like £10,000 if you're SBing...
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Well, I have gone through these discussion boards with a fine tooth comb and I am getting some positive signs that SB can work with Forex. I am not a trader and would prefer not to pay tax. Surely, SB even with bigger spreads would negate the tax that would have been paid through CFDs?

Am still relatively new to this but am enjoying swing trading - not day trading.
 
mcleod100 said:
Well, I have gone through these discussion boards with a fine tooth comb and I am getting some positive signs that SB can work with Forex. I am not a trader and would prefer not to pay tax. Surely, SB even with bigger spreads would negate the tax that would have been paid through CFDs?.
Click to expand...
Well, if you're pulling consistent profits it should be relatively easy to calculate the difference between lower profits without tax using SB and higher profits with tax 'A.N. Other' method.
 
Stick with Direct Access.

If you make 50% a year then you wont need to pay much tax for a few years anyway. As you have
a CGT allowance. If you trust your spouse open a joint account and you get 15K tax free each year.

So first go Direct Access, if you find that you are making so much money that you are paying so much
tax (if only!) then you can always switch to SB later.
 
Sorry if this is a silly question (Chinese proverbs aside) but if you go direct access, what does that mean, what would you be trading? futures? actually buying stocks?

Also, typically what sort of amount of capital would you need to start trading using direct access? I currently have £3600 with d4f which I am slowly but steadily growing as I learn, would it be worth my while using a direct access platform?

Finally, and slightly unrelated, is there a good source of diary type news, ie a list of dates when companies announce their figures, when important economic decisions are due to be made, eg interest rates etc, I'm sure Yahoo used to have a list but I can't find it now.
 
Who is leeloz2? This post seems to be popping up all over the place and the link I tried doesn't work either.
 
Personally, I would rather pay tax. At least if you are paying CGT, you are making a profit. You need to be making a lot of money spreadbetting before the tax-free bit is of real benefit and then you start going down the income tax lines.
 
Lord Lister said:
Thanks TraderGuy, any thoughts on my other two queries anyone? Thanks

Sorry if this is a silly question (Chinese proverbs aside) but if you go direct access, what does that mean, what would you be trading? futures? actually buying stocks?

Also, typically what sort of amount of capital would you need to start trading using direct access? I currently have £3600 with d4f which I am slowly but steadily growing as I learn, would it be worth my while using a direct access platform?
Click to expand...
From the T2W glossary: Direct Access Trading

DAT allows a client to trade directly with another client, for example, a market maker on Nasdaq, or a specialist on the floor of an exchange without broker interference. DAT is the preferred trading system for day traders, where success is dependent upon speed of execution.

It's hard to say if a direct access broker would be helpful or what the minimum account sizes are without knowing what you trade and how you trade it. What market(s) are you trading with CMC and what type of account? Also what style of trading are you doing? If your trades are long term then it's not as important. If you scalp then it could be beneficial.

Cheers,
TRADERguy
 
Why change it if its not broken.

[Also, typically what sort of amount of capital would you need to start trading using direct access? I currently have £3600 with d4f which I am slowly but steadily growing as I learn, would it be worth my while using a direct access platform?]

Comment:

If d4f is working for you as a profitable training ground then I would stay with it. Look forward to comments on your other questions from more experienced traders. What amount did you start with and how long has it taken to get to £3600 ??
 
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Also what style of trading are you doing? If your trades are long term then it's not as important. If you scalp then it could be beneficial.
Click to expand...
TRADERguy

Generally I am trading individual stocks from the FTSE100 over a period of a few hours to up to three weeks. This is not exclusive though, I am interested in intra day trading, but got seriously stung when I first tried this. See Below.

What amount did you start with and how long has it taken to get to £3600 ??
Click to expand...
scrosbie

Originally I started with £1000 and blew that in a matter of weeks in the run up to the Gulf War. After this I decided to learn first, bought some books and studied. I then started back with £2800 and have been trading slowly with small amounts over the last year. (Just learning you see) Usually trading for a month then continuing my education for a month or two then going back. I am fortunate to be self employed in a business that allows me a lot of free time.

I am now beginning to increase the size of my trades with a view to growing my capital.

I am just not sure whether SB is the best route?

Also while I'm on, I won a 6 month trial to Investor Intelligence in a trading game, does anyone have any informed comments on this online publication? Thanks everyone.
 
Lord Lister,

CMC is probably fine for you for now. Keep track of your costs (the spread) and compare them with what you would be paying at somewhere like Interactive Brokers (IB). Don't forget to factor in the effect of taxes.

Cheers,
TRADERguy
 
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