spread-betting futures

[price777999]

Are there any good sb brokers offering futures instruments ...
I know of prospreads but I remember reading about another firm on here ..can't find the thread .

Cheers

 

[alexaherself]

Capital Spreads certainly offers spreadbets on a huge range of futures. (I think they all do, probably, though?).

 

[MORRIS2001]

Every so often one opens up but the problem facing UK brokers is that when you offer 'DMA' spread bets how do you finance the betting duty charge?

Each time one of these operations sets up it only lasts until they get their first tax charge and then the team behind the genius plan suddenly learn why it can't be done.

Obviously, one solution is to base yourself in a non taxable betting jurisdiction but then you hit the issue that when running what is essentially a futures based revenue model the cost of marketing and generally running the operation is much higher than the potential revenues from what is a very small market segment.

I believe I am right is saying that even ProSpreads now offer OTC as well as DMA as a result.

 

[Aston1st]

Every so often one opens up but the problem facing UK brokers is that when you offer 'DMA' spread bets how do you finance the betting duty charge?

Each time one of these operations sets up it only lasts until they get their first tax charge and then the team behind the genius plan suddenly learn why it can't be done.

Obviously, one solution is to base yourself in a non taxable betting jurisdiction but then you hit the issue that when running what is essentially a futures based revenue model the cost of marketing and generally running the operation is much higher than the potential revenues from what is a very small market segment.

I believe I am right is saying that even ProSpreads now offer OTC as well as DMA as a result.

Yes they are offering OTC but to a more Institutional Client base. They are offering Trading Technologies within a spread betting wrapper too. Your last point about marketing to a small market segment is spot on, but I think the way forward in that regards is education on trading futures to a wider public and perhaps introducing the service to the more experienced trader, that likes trading spreads.

 

[patrickrooney]

Why not go with a pure futures brokerage firm?

 

[alexaherself]

Why not go with a pure futures brokerage firm?

For those of us living in the UK, spreadbetting profits are free from income tax and capital gains tax, which of course makes a huge difference to the bottom line (for anyone who's profitable).

 

[patrickrooney]

For those of us living in the UK, spreadbetting profits are free from income tax and capital gains tax, which of course makes a huge difference to the bottom line (for anyone who's profitable).

Brilliant. Thank you for the information.