Question Regarding CFD Brokers.

Denny

Member
52 1
Can anyone tell me if all CFD brokers require you to trade on the margin when trading CFDs.

I would like to trade CFDs , to avoid tax , but often trade more medium term (in the right conditions) which often means the interest charges add up to quite a significant cost. I would like if possible to have a CFD account but put all the money up on each trade.

Does anyone know if this is possible ??

Denis.
 

JonnyT

Senior member
2,560 22
Just deposit all you money in the account. You should earn interest on the cash to offset the interest used for the trades.

JonnyT
 

Denny

Member
52 1
Thanks for the prompt replies.

The problem is that the amount of interest they pay you on your account balance, or when you are short is far less than they charge when you are long. If your long trade then turns into a more longer term trade one finds that the charges would have been less in conventional dealing stamp duty and all.
 

anley

Senior member
2,730 229
Denny

You can't do what you want because otherwise everyone would be doing it (in order not to pay stamp) and the CFD market would collapse overnight as Treasury and Tax officials decend on the square mile in mass.

CFD brokers are very wise to this 'trick' and won't let anyone do it.

Perhaps if you work everything out and hold a trade for say 3+ months the stamp might be very cheap compared to the financing costs.
 
 
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