Hi all, im a short term intraday FX trader, could someone please tell me why most Forex traders like using Forex brokers rather than a Spread betting company even when trading short term. Some of the FX brokers spreads are not that much tighter, if at all, than what is offered by the likes of IG index. Some FX brokers offer 4 pips spread on some pairs and IG offer exactly the same.
Even if the spreads are wider with a SB company, I noticed Dukascopy Swiss FX does offers tighter spreads, if you trade full time with a broker and make good profits the commisions and eventually the tax bill takes away much of the advantage of tighter spreads. Also Capital Gains Tax on any profits may be 18%, but if this was classed as a full time occupation and main source of income, I wouldnt be suprised if the Inland Revenue may well make you pay the full 40% tax on a portion of it, if you had made a big profit, in which case its even more difficult to justify using a broker over SB company.
I know im probably missing something but i dont know what!
Even if the spreads are wider with a SB company, I noticed Dukascopy Swiss FX does offers tighter spreads, if you trade full time with a broker and make good profits the commisions and eventually the tax bill takes away much of the advantage of tighter spreads. Also Capital Gains Tax on any profits may be 18%, but if this was classed as a full time occupation and main source of income, I wouldnt be suprised if the Inland Revenue may well make you pay the full 40% tax on a portion of it, if you had made a big profit, in which case its even more difficult to justify using a broker over SB company.
I know im probably missing something but i dont know what!