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MT4 for Spread betting vs Forex

  • #21
  • Mar 1, 2018 7:37am Mar 1, 2018 7:37am
Quoting Spreadbetter
There’s a reason why HMRC doesn’t bother pursuing solo spread betters, whose only employment is “self employment” as wretched gamblers. Can you work out why? {quote}

I think I have said why, its obvious.
  • #22
  • Mar 1, 2018 8:47am Mar 1, 2018 8:47am
Oh so you realised that close on zero full time spread betters make money, so the revenue cba pursuing them. The few that that do make money, taking it off spread betting firms’ bottom line, are grassed up to HMRC by the snide firms.

Quoting tomorton
{quote} I think I have said why, its obvious.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #23
  • Mar 1, 2018 10:12am Mar 1, 2018 10:12am
Quoting Spreadbetter
Oh so you realised that close on zero full time spread betters make money, so the revenue cba pursuing them. The few that that do make money, taking it off spread betting firms’ bottom line, are grassed up to HMRC by the snide firms. {quote}

Yes, obviously. As I said, I believe HMRC's view is that SB is unprofitable for the punter and that most of them will lose money long-term. And we all agree with that. I believe the HMRC also believe that if a trader has 1 or 2 or even 3 winning years, the tax they would be able to levy on his winnings in this time period would be outweighed by the claim he would be able to make on his losses (as expected by HMRC) over other years. So, net result for the country would be a loss of tax revenue. This is why I believe it is an uphill battle to get yourself taxed as a spreadbetter, and HMRC will fight you along the way.

This is all obvious, why are we discussing it?

But it would be interesting to hear of SB traders who have been taxed or who have tried to be taxed.
  • #24
  • Mar 4, 2018 4:40pm Mar 4, 2018 4:40pm
Does anyone know something on the same issue about the MT5 platform? Is there any difference?
  • #25
  • Mar 13, 2018 5:03am Mar 13, 2018 5:03am
Quoting lemercenaire
{quote} Yeah, I was going to mention that. If it's your only income, the tax man will not be happy letting you keep it all. Horse-racing pro-gamblers face the same problem. If you're successful enough to warrant worrying about it, then you will be able to afford a good tax-accountant who'll minimise your exposure anyway.

Hi
I have an idea like targeting a pair with an the highest positive SWAP fee to buy or sell at a longer time frame best price and keep holding for longer time just aiming at the daily positive swap fee as a daily income instead of doing number of trading transactions.

Daily positive swap fee per one lot - NZDCHF $5.6, AUDCHF $4.3,

in case if we keep sufficient capital to go for 100lot and at a good price and kept for longer, we might get fixed daily income, so my question is do we have to pay for tax for it also? lets say in country like UK, US or Australia?
if any professional have some idea for this?
Rgds
Imdi
  • #26
  • Mar 13, 2018 5:11am Mar 13, 2018 5:11am
Quoting imdisaait
{quote} Hi I have an idea like targeting a pair with an the highest positive SWAP fee to buy or sell at a longer time frame best price and keep holding for longer time just aiming at the daily positive swap fee as a daily income instead of doing number of trading transactions. Daily positive swap fee per one lot - NZDCHF $5.6, AUDCHF $4.3, in case if we keep sufficient capital to go for 100lot and at a good price and kept for longer, we might get fixed daily income, so my question is do we have to pay for tax for it also? lets say in country like...
Institutions trade stuff like that, trading the spread etc et al. Never was my bag.

The tax man won't differentiate with this as far as I can see. It's still earned in the world of lunacy (an accountant's words to me once, lol).
  • #27
  • Mar 13, 2018 5:19am Mar 13, 2018 5:19am
Quoting lemercenaire
{quote} Institutions trade stuff like that, trading the spread etc et al. Never was my bag. The tax man won't differentiate with this as far as I can see. It's still earned in the world of lunacy (an accountants words to me once, lol).
Thx Leme.........!!
  • #28
  • Apr 19, 2018 6:58am Apr 19, 2018 6:58am
Quoting imdisaait
{quote} Hi I have an idea like targeting a pair with an the highest positive SWAP fee to buy or sell at a longer time frame best price and keep holding for longer time just aiming at the daily positive swap fee as a daily income instead of doing number of trading transactions. Daily positive swap fee per one lot - NZDCHF $5.6, AUDCHF $4.3, in case if we keep sufficient capital to go for 100lot and at a good price and kept for longer, we might get fixed daily income, so my question is do we have to pay for tax for it also? lets say in country like...

Issue with this idea is any move in the price of the currency pair could easily wipe out any gain from the swap income.

Just have a look at audjpy and nzdjpy this year to date.

Both pairs have high swap rates yet the audjpy and nzdjpy have weakened up to 700 and 500 pips between Jan and March.

No such thing as "easy money", there is always a trade off.

------
There do exists real World ways in which you could take advantage of interest rate differentials but again, there are pros and cons and chances are, any cons will have to be offset by an, "indifference" factor.

Ie. If you spend your time between a country with low rates and a country with high rates, you could transfer some money to the high rate country account and you would receive the higher interest rate. You still have the issue of the price of the forex moving against you but if you do not intend to convert back to your low rate currency, as you intend to spend the money in it's own country, it doesn't really matter.
  • #29
  • Apr 25, 2018 10:49pm Apr 25, 2018 10:49pm
Quoting Tesmy
{quote} Issue with this idea is any move in the price of the currency pair could easily wipe out any gain from the swap income. Just have a look at audjpy and nzdjpy this year to date. Both pairs have high swap rates yet the audjpy and nzdjpy have weakened up to 700 and 500 pips between Jan and March. No such thing as "easy money", there is always a trade off. ------ There do exists real World ways in which you could take advantage of interest rate differentials but again, there are pros and cons and chances are, any cons will have to be offset...
Thx Tes
  • #30
  • Last Post: Nov 11, 2018 6:49pm Nov 11, 2018 6:49pm
Any advice about best spreadbetting brokers in UK
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