Hi all, I'm just looking at beginning Forex (I have some experience of trading stocks, although not day trading)...
My basic question is - how does trading forex through a company like IG or Finspreads differ from trading through a broker like ODL. Having watched metatrader charts in real time from ODL and the same chart from IG Index, there is a small difference in the price, but they generally track pretty closely (on 1m, 5m and 1h charts anyway).
I understand from a tax point of view that I would not pay tax on profits on a spread betting account, but I would on an account with ODL. Also, trading via a Spreadbetting company I may be able to trade smaller amounts per point/tick. Apart from this, is there a difference from my point of view as a trader?
Is it that there are differences in the underlying way that each company operates? I know that by trading stocks or commodities via spreadbetting I do not own the underlying instrument, but neither would I if I traded a currency pair... either by spreadbetting or through ODL.
It did occur to me that maybe ODL would be more direct access to the market - but on reflection I'm not sure what that means - ODL are a broker and 'the market' is a collection of traders, trading via brokers isn't it? Am I right that there are no actual exchanges like there are for stocks (NYSE etc) for forex? I guess IG are also brokers at some level, unless IG trade via a broker. On reading this message through, I realise that this paragraph could be complete and utter nonsense... I can almost hear the slapping of hands on foreheads and mutterings of 'oh dear, oh dear...' . Anyway, notwithstanding my ignorance, enlitenment from those who know would be much appreciated...
Many thanks in advance
-=Neil=-
My basic question is - how does trading forex through a company like IG or Finspreads differ from trading through a broker like ODL. Having watched metatrader charts in real time from ODL and the same chart from IG Index, there is a small difference in the price, but they generally track pretty closely (on 1m, 5m and 1h charts anyway).
I understand from a tax point of view that I would not pay tax on profits on a spread betting account, but I would on an account with ODL. Also, trading via a Spreadbetting company I may be able to trade smaller amounts per point/tick. Apart from this, is there a difference from my point of view as a trader?
Is it that there are differences in the underlying way that each company operates? I know that by trading stocks or commodities via spreadbetting I do not own the underlying instrument, but neither would I if I traded a currency pair... either by spreadbetting or through ODL.
It did occur to me that maybe ODL would be more direct access to the market - but on reflection I'm not sure what that means - ODL are a broker and 'the market' is a collection of traders, trading via brokers isn't it? Am I right that there are no actual exchanges like there are for stocks (NYSE etc) for forex? I guess IG are also brokers at some level, unless IG trade via a broker. On reading this message through, I realise that this paragraph could be complete and utter nonsense... I can almost hear the slapping of hands on foreheads and mutterings of 'oh dear, oh dear...' . Anyway, notwithstanding my ignorance, enlitenment from those who know would be much appreciated...
Many thanks in advance
-=Neil=-
