Why Spread Bet?

dc2000

Veteren member
4,766 129
Firstly let me say I am in no way against spreadbetting infact I regard it as an easy way for a novice to learn about the market.

With regard to the TAX situation DD and co are partialy correct ( I believe the IR jury are still out in City Traders case) spreadbetting is classed by the inland revenue as gambling and therefor does not incure income tax there is a caveat to this in that if your sole income is derived from said betting and is considered in excess of what you need to live you will be classed as a professional gambler and taxed acordingly.
Simply not telling the IR is not the sensible option. If trading is your only form of income firstly the National Insurance will write to you then the IR will contact you and you will need to provide previous years trading figures.

If anyone can prove different please do so you will need to show an SA302 that shows earnings from spreadbetting in excess of £50k with no tax payable.
 

LoopyLoo

Newbie
3 0
Totally agree with DarkTone find a lot of arrogance and aggressiveness with some of the spreadbetting companies (well IG to be specific can I say that)

Found it quite disconcerting when I first started. Is it just me or have others found that? :eek:
 

Calvin

Junior member
30 0
LoopyLoo

I've only had dealings with one SB company - Finspreads - but I've found then pretty easy going (though I've not had any disputes, so they might have a dark side I haven't encountered yet!).

They do tend to assume you know what you are doing at first, but I found that when I explained I was a novice they were patient and happy to explain what was what. The one thing they can't do, of course, is offer any advice on which way to jump.

Finspreads seem to push 'approachability' as one of their selling points - maybe more so than narrow spreads (I keep meaning to run a comparison with other SB companies on the indices I trade, but haven't got around to it yet!). But as I say, I've never used any other SB companies, so I've no grounds on which to compare them to others....

As a side note, I now do most of my trading online, and the website never gives me attitude!

Calvin.
 

Dave1971

Active member
135 0
I have accounts with Cantor & Finspreads and used to have one with IG. I try to get some trading done from work, but because of the firewall can't use any of their online trading platforms, and the phone isn't practical because of the delay, and earwiggers in the office :mad:

I have just learned that Captail Spreads online platform is on a different format and not blocked by my firewall, and so have opened an account with them. It's early days but I have found the prices competitive and the online execution faster than the others.

As for the opening question, why spreadbet? I think it gives a novice or someone like me who is still finding the method that best suits, the flexibility to try many different things.

Dave
 

LoopyLoo

Newbie
3 0
Hey cheers for that Calvin, I do most of my spreadbettin' on line now too, makes it much easier and you are right no attitude. Havin said that there are times when there is no option but to pick up the phone and also good not to get to reliant on web transactions as sometimes (especially at crucial times such as announcement of figures) the platforms go down!!!!!

Adding to this thread I can't see (apart from maybe specialist dealings) why anyone would want to use any other form method of investing rather than spreadbettin. I guess I just tend to see all the advantages and the dis-advantages can be easily overcome. As it becomes more competetive the advantages seem to grow, as for charts Deal4Free's seem ok to me as well as their tight spreads.
 

frog

Junior member
49 2
Spreadbetting offers the best indicator available and that is their bias you don't need anything else apart from support and resistance.The SBs show you the way not to go.
Cheers
Tel

Simple comme bonjour

ps I use Fins and they are VG by me.
 

Calvin

Junior member
30 0
Frog - can you expand on that? As a relatively inexperienced spreadbetter, it hadn't occurred to me that the SB prices might reveal clues about why way they think the market is heading.

As someone who shorted Dax and Dow yesterday morning, just before they sky-rocketed, I could do with all the help I can get!
 

blackcab

Established member
523 51
Calvin - there are lots of TW threads that debate this point. I read most of them and learned a lot. If you're SBing the cash index you know it's based on the index future +/- a 'special' SB factor, not the underlying cash index? Ie SB's Dow Cash price is not the Dow - it's the Dow future (DJU4) +/- some.
 

seancass

Well-known member
329 1
Sharky,

The issue of spreadbetting platforms and the companies that support them e.g. finspreads, Cantor, IG etc.etc. is one which is of great interest to a number of us.

Given that T2W stages some very effective surveys, is it possible that you could hold a survey in respect of members' preferences for the various SB companies, based on effectiveness and ease of online trading platform, reliability of trading platform, response from and attitude of customer services, fairness of the spread, ease of transfer of funds to and from the account etc.

I think this would be of interest to some members, particularly if the results of the survey were to be tabulated for ease of analysis by a technical wizard like your good self! It would certainly offer those to whom SB is a new trading vehicle a further dimension to their final choice of SB company. What do you think?

Seancass
 

frog

Junior member
49 2
%
Calvin said:
Frog - can you expand on that? As a relatively inexperienced spreadbetter, it hadn't occurred to me that the SB prices might reveal clues about why way they think the market is heading.

As someone who shorted Dax and Dow yesterday morning, just before they sky-rocketed, I could do with all the help I can get!

Calvin-Ok,firstly I work nights so it isn't often I'm in front of the screen all day and I think that's a
great advantage.Today I'm watching but only to reaffirm my position(am also on a rest period) and am happy with my decision thus far.This morning I sold Fins Oct Dow at 10078 so far so good but as I,m watching I'll carry on assessing.The last 3 days I bought and apart from Tuesday which ended flat albeit a small gain for me it has been an excellent week so far.
I'm not sure how the SBs set their spread but it appears to be a mix of futures and other factors I think part of these other factors is the general direction of the position taken by their customers and therefore if in their assessment their customers are wrong(apparently 97%
always are)they move their spread to limit the impact should the public be correct and thus limiting their exposure.
All I do is use their spread to assess the possible next move which usual entails going against the Sbs obvious direction though this has to be considered in the context of support and resistance.Unfortunately these are a matter of conjecture,100 people looking at the same chart could come up with as many variations.
Today was a difficult choice because Fins had their spread straddling yesterdays close but I felt
that we had hit temporary resistance and that it wouldn't go too much further.
As I write there appears to be support at just below 10030 and I had reckoned on this being a probable support yesterday an hour before close of trade.I would like this support to collapse heading towards 10000 then 9985 ,but if looks like it's going to hold I'm out of here.As I write Fins are giving me a buy at 10059 so only a meagre 19 points today.I will keep monitoring.Off for an aperitif.
Cheers
Tel


Simple comme bonjour
 

Calvin

Junior member
30 0
blackcab said:
Calvin - there are lots of TW threads that debate this point. I read most of them and learned a lot. If you're SBing the cash index you know it's based on the index future +/- a 'special' SB factor, not the underlying cash index? Ie SB's Dow Cash price is not the Dow - it's the Dow future (DJU4) +/- some.

Now you have got me worried. I can see I'm going to have to do some research on this!! I'm betting on the September contracts for the Dow and the Dax - which I presume, by definition, are futures (meaning the SB's best guess at what the September proice will be?)?

And the cash indices, I guess, are the actual realtime prices (though given that the indices I trade on are constantly shifting, I assumed there was a close correlation).

Is that right? Anyway, thanks for pointing this out - I'll search round the threads to see what I can find on the subject. Is the "+/- some" the indicator for the SB's view of the market direction?

Calvin
 

Calvin

Junior member
30 0
Frog,

Thanks a lot for that detailed reply. I'm going to pay your post the ultimate compliment by printing it off to take away and digest! I'll see if I can track what you did right and what I've done horribly wrong this week.

If you don't mind me takinig liberties, I might get back to you on it at some point.

Thanks again,

calvin.
 

frog

Junior member
49 2
Calvin said:
Frog,

Thanks a lot for that detailed reply. I'm going to pay your post the ultimate compliment by printing it off to take away and digest! I'll see if I can track what you did right and what I've done horribly wrong this week.

If you don't mind me takinig liberties, I might get back to you on it at some point.

Thanks again,

calvin.

Hi again,thanks for your faith I'm not sure I deserve it.Don't be mislead by my choice of which futures I trade as I do any off them.I'm only influenced by the position of the spread in relation to the previous days close.I tend to stay away from the day prices as they seem so final to me,apart from a slightly smaller spread I believe the advantage of being able to carry a position over makes me feel that little bit safer.By all means if I can give you any assistance I'll try my best but I must add that a lot of what I do,though simple,involves how I perceive and "feel"the market.
Today is difficult as I can see the market and this can make me act irrationally,but the spread is still in my favour though only 20 points and I'll stick with it for the while.Seem to be sticking around the10040 level and I wish it would break down through,my reading of Fins is that it should.
Time for a bottle of wine the boss(my lovely wife)has just come home.
Later
Tel

Simple comme bonjour
 

sefty

Active member
114 3
The best thing about spread betting is you can bet on Indices. In my opinion it is far easier to see if the tide is going up or down rathering than looking at lots of different boats to put your money into.

As old Doc used to say you gotto understand where the market is at before you start stock picking. there is no better way than learning that than to bet on indices.

Good luck happy betting

Sefty
 
 
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