The Economist-"Spread betting"

0007

Senior member
2,376 660
An interesting find with 2 points of interest for me:


(1) Only 20% of spread betters make a profit, according to research at the Cass Business School in London.
Is this any different than traders using traditional brokers? Anyone know?


(2) Britain gives it the same tax break as gambling yet regulates it through its Financial Conduct Authority (FCA). In most other European countries the reverse is true: spread-betting gains are taxed as financial income but the activity is regulated like gambling. To add to the mess, America banned it as a form of online gambling in 2006 yet since 2010 has allowed the retailing of some forms of financial derivatives that replicate spread bets.
Sounds like UK has got it right here – at least, it suits me!
 

counter_violent

Legendary member
10,513 2,784
An interesting find with 2 points of interest for me:


(1) Only 20% of spread betters make a profit, according to research at the Cass Business School in London.
Is this any different than traders using traditional brokers? Anyone know?

Just applying the old 80% / 20% business rule would make it about right and yes I would have thought it's the same on traditional broker accounts.


(2) Britain gives it the same tax break as gambling yet regulates it through its Financial Conduct Authority (FCA). In most other European countries the reverse is true: spread-betting gains are taxed as financial income but the activity is regulated like gambling. To add to the mess, America banned it as a form of online gambling in 2006 yet since 2010 has allowed the retailing of some forms of financial derivatives that replicate spread bets.
Sounds like UK has got it right here – at least, it suits me!

I'm happy with it and the govt clearly are....easy to administer betting tax on profits made by providors.
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock