Spread betting vs "proper" fx account

[trican]

Sorry, for the following newbie question...

If spread betting is tax free, why would you open a proper currency trading account? Are the bid/ask spreads tighter? perhaps opening times are not convenient with the online spread betting account? Any other reasons?

 

[ramrob]

Sorry, for the following newbie question...

If spread betting is tax free, why would you open a proper currency trading account? Are the bid/ask spreads tighter? perhaps opening times are not convenient with the online spread betting account? Any other reasons?

I recently found this link here on T2W, think it pertains and i hope it helps.

 

[Splitlink]

Sorry, for the following newbie question...

If spread betting is tax free, why would you open a proper currency trading account? Are the bid/ask spreads tighter? perhaps opening times are not convenient with the online spread betting account? Any other reasons?

Yes, they are tighter but that is not the whole point of spreadbetting. It is, frankly, cheaper--not as much margin money needs to be tied up. If one is able to take 20 points when trading Footsie, then the spread has less relevence. Scalping with spreadbetting is where "proper" accounts are more necessary.

 

[trican]

I recently found this link here on T2W, think it pertains and i hope it helps.

I don't see any link?

 

[ramrob]

whoops.

The Structure of Forex Brokers

there we go.
:drunk: