What type of Markets and which type of Accounts

[bikhod]

Hi

I couldn't figure where is the best place to put this thread, so I thought I'd put it in the general section.

I had been investing between 1995 - 2002 and I have been (swing) trading since 2003. I have finally plucked up the courage to have a go at trading full time for the next six months.

Because I have been in the markets for so long, I have got accounts in the US (optionsXpress and Etrade) and UK (SelfTrade and TD Waterhouse). My preference is for US shares because I just find the quality of information to be much higher e.g. IBD.

Here is my problem/question: I need to reduce the number of accounts so that I can focus and this is where I am getting confused. On the one hand, I am considering a spread betting account because of the tax savings and ability to trades indices and stocks. BUT, I don't like the spreads and I have a gut feeling that spread betting is not as rosy as it seems.

I am also considering TradeStation but that would mean keeping my US dollars AND paying taxes on my profits. The former I can protect by shorting the dollar to protect my account value. The former I can't do much about! Power Etrade (what I use now) is also very nice.

Are there any other better options out there? Please bear in mind that I am looking for:

* good spreads
* ability to go long and short
* keep transactions costs down (this and the previous requirement led me away from UK brokers)
* ability to obtain leverage (though I have a large account so this is lower priority for me)
* good insurance (in case the broker goes bust)

I am particularly interested on people's views on spread betting and CFDs.

Thanks
Bikhod

 

[gedward3]

Most of the guys on this site speak quite highly if Interactive Brokers in terms of transaction costs. I believe their customer service is not the best but hey you get what you pay for these days.

http://www.interactivebrokers.co.uk/en/main.php

Hope this is of help

 

[Jack o'Clubs]

Yup, I was going to say 'have you looked at Interactive Brokers...'

 

[bikhod]

Yup, I was going to say 'have you looked at Interactive Brokers...'

Hi

Thanks guys. Yes, I looked at IB and even openned an account with them for a while.

BUT, I did not like their customer service and I found their platform complicated (for me) and unfriendly. They are very cheap though.

The only thing with IB is that the account must be in the UK, which means that I would have to pay tax. As my domicile status is non-British, I can have accounts abroad, make as much money as I like and not pay a single penny of tax - hence why I mainly trade in the US.

But, as I said earlier, spread beeting seems to offer the best of both worlds: no tax and access to the sort of things I normally trade. BUT, I just keep having a negging feeling that there is more to spread betting that meets the eye ?!?!?!

 

[Jack o'Clubs]

I'd check that - it's not something I've looked at in detail as it doesn't apply to me, but I'm pretty sure you can offshore an IB account - if not then look at brokers like Internaxx who is a specialist offshore broker.

 

[hoogsy]

Tradestation brokers

Hi ,

New to this thread, but does anybody know if Tradestation brokers short on stocks, and also is there trading software any good?

thanks

 

[garethb]

Hi ,

New to this thread, but does anybody know if Tradestation brokers short on stocks, and also is there trading software any good?

thanks

Yes you can short stocks with Tradestation. Like all US brokers they have a list of stocks available to short which changes from day to day but is a reasonably long list. I like their software but I don't have much to compare it with.

bikhod

If you genuinely can trade with a US broker and stay tax free and then I don't think you should consider Spreadbetting. The only benefit to my mind is tax. I think IB should be able to set you up a US account.

Gareth

 

[hoogsy]

Yes you can short stocks with Tradestation. Like all US brokers they have a list of stocks available to short which changes from day to day but is a reasonably long list. I like their software but I don't have much to compare it with.

bikhod

If you genuinely can trade with a US broker and stay tax free and then I don't think you should consider Spreadbetting. The only benefit to my mind is tax. I think IB should be able to set you up a US account.

Gareth

Thanks for the info, the reason i ask about tradestation software, because i have some code i would like to backtest. One thing i forgot to mention what the min account size for daytrading?

thanks

tony