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  #1  
Old 21-09-2009, 09:28
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Default spread betting

I live in th UK. You can Spread bet the forex market and not get taxed!:)
Having read something in the forum about having signal Software that would excute the ASH trades on mt4 platform. Would this also work on a non mt4 platform? Or is there mt4 brokers who offer spread betting?
regards jbell
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  #2  
Old 26-09-2009, 17:00
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There are no MT4 spread betting brokers that I am aware of. GFT and FXCM do allow automated trading on their spread bet accounts using their proprietary APIs. GFT also allow you to write strategies in their CTL language, but that leaves out a lot of features that you might be used to in MQL4.

Jim
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Old 27-09-2009, 10:19
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Default What's the difference?

What I have difficulty in understanding is the difference between a tax-free spread betting firm and a non-tax-free.

For instance, if I were to open an account with IG Index UK I would pay no UK taxes on any financial gains.

If I used Alpari UK I would be taxed.

It seems to me that the bets are the same, the spreads are similar, the risks are comparable.

So what is the essential difference?

And who decides which is a taxable firm and which is not?

And on what criteria?

Beats the hell out o' me!!

Egwig :confused:

Last edited by Egwig; 27-09-2009 at 10:26.
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Old 27-09-2009, 14:12
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Essentially it's just the label on the tin. The same firm can, and often does, offer both. Call it betting and it's tax free. Call it forex, and if you're fortunate enough to be able to make a profit you pay tax on it. Mind you, if you make a loss it reduces your tax!

The sums are done slightly differently, but the main difference is in the packaging.

Jim
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Old 27-09-2009, 15:10
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Quote:
Originally Posted by Trading Gurus View Post
Essentially it's just the label on the tin. The same firm can, and often does, offer both. Call it betting and it's tax free. Call it forex, and if you're fortunate enough to be able to make a profit you pay tax on it. Mind you, if you make a loss it reduces your tax!

The sums are done slightly differently, but the main difference is in the packaging.

Jim
Thanks for the reply, Jim.

If it were as simplistic as that surely all UK brokers would offer tax-free accounts. It would presumably be in their interests to do so.

There has to be more to it than simply what they choose as a label.

I feel that there has to be some legislative factor somewhere in the equation not simply left to some whim at the sole discretion of the individual broker in what he chooses to call himself.

Perhaps I should ask them.

Egwig
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  #6  
Old 27-09-2009, 16:45
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Well, they're treated differently under tax legislation, as we've just been discussing. The "punter" might not be taxed, but the broker certainly is! A particular company might not fancy the tax implications of providing spread betting accounts.

As far as regulation goes both spot forex and financial spread betting are handled by the FSA, so no difference there.

Jim
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Old 27-09-2009, 21:24
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Quote:
Originally Posted by Trading Gurus View Post
Well, they're treated differently under tax legislation, as we've just been discussing. The "punter" might not be taxed, but the broker certainly is! A particular company might not fancy the tax implications of providing spread betting accounts.

As far as regulation goes both spot forex and financial spread betting are handled by the FSA, so no difference there.

Jim
So, does that mean it's a case of:-

a. I pay the tax

or

b. The broker pays the tax.

If this is the case I can begin to understand the broker's dilemma. :cool:

Egwig
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Old 28-09-2009, 09:11
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The tax they have to pay isn't the same amount that you would have had to pay, not least because in general they make a profit and their customers don't! That's certainly one dilemma the brokers have though.

They'd also need extra software in the back office to do their SB sums differently from their forex ones.

Jim
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Old 28-09-2009, 09:49
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Quote:
Originally Posted by Trading Gurus View Post
The tax they have to pay isn't the same amount that you would have had to pay, not least because in general they make a profit and their customers don't! That's certainly one dilemma the brokers have though.

They'd also need extra software in the back office to do their SB sums differently from their forex ones.

Jim
It would seem that the more we stir this pot the muddier it becomes.

It is a little like having two bookmakers' betting shops next door to each other.

Presumably any profit made by either bookmaker would be subject to the same tax laws.

If I use the first and have a win I pay tax but if I go next door and have a win I get away tax-free.

I still don't fully get it. :confused:

Egwig
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