Financial Transaction Tax - You think it's still possible to win the game? | Forex Factory

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Financial Transaction Tax - You think it's still possible to win the game?

  • #1
  • First Post: Edited Mar 2, 2011 9:11am May 17, 2010 4:22pm | Edited Mar 2, 2011 9:11am
Hi,
it seems that the Tobin Tax will come for sure in europe. Germany is stupid enough to install the tax as first country and other european countries will follow. Do you think it's still possible to be a profitable trader in spite of the transaction tax? I assume that the tax will be 0.05% for forex and you have to pay it per halfturn.
  • #2
  • May 17, 2010 5:30pm May 17, 2010 5:30pm
This is not a done deal, though it seems the socialists are pushing hard for it. The IMF has already come out against the idea of an FTT in favor of a direct bank levey and Merkel does not support such a measure in germany. The FTT will not gain any traction in the UK now that, that idiot brown is gone and most certainly won't end up in the US given that nothing will get through the senate for at least the next decade given all the partisan BS.

So even if Germany does pass this it seems it will be a boon to countries like the US and UK.
  • #3
  • May 18, 2010 3:29am May 18, 2010 3:29am
Donīt think that Germany can go alone, but maybe Europe...The hope is that , since most of the planet (US), will not follow, that Europe is forced to keep it low.
Double 0,05, would definitely ruin my system....except for the weekly chart!!!!Maybe dayly....

Yes it looks bad...politicians like it cause it puts the blame for their stupidity on someone else....and it sells good on the public, forced now to save forever,to pay their debt... so they (the ploticians) can continue supporting the expensive lobbies (who finance their campaigns): oil, weapons, pharma and bureacracy...of course with more credit....

Blame it on the "speculators"...
  • #4
  • May 18, 2010 3:50am May 18, 2010 3:50am
There's always going to be speculator friendly, banking secrecy guarding havens around the world. Switzerland, Hong Kong, Isle of Mann, etc. No worries chaps.
  • #5
  • May 18, 2010 4:37am May 18, 2010 4:37am
Quoting endroute
This is not a done deal, though it seems the socialists are pushing hard for it. The IMF has already come out against the idea of an FTT in favor of a direct bank levey and Merkel does not support such a measure in germany. The FTT will not gain any traction in the UK now that, that idiot brown is gone and most certainly won't end up in the US given that nothing will get through the senate for at least the next decade given all the partisan BS.

So even if Germany does pass this it seems it will be a boon to countries like the US and UK.
Good morning,
the politicans in germany go crazy at the moment and speculators are the public enemy number one. The collaborating opposition is claiming a transaction tax or they won't accept the rescue package. Unfortunately more and more members of the coalition parties agree with the opposition. In the end the pressure on chancellor Merkel will be too strong. There's no way that GB or switzerland (not EU) will install a transaction tax but germany is "brave" enough to try a solo attempt.
I don't want to discuss who is really responsible for the problems in europe (we all know it) and what a dumb idea the Tobin Tax is but I'm interessted if you think the tax will kill the whole trading environment regarding the retail trading.
  • #6
  • May 18, 2010 5:42am May 18, 2010 5:42am
Quoting MCFly
Good morning,
the politicans in germany go crazy at the moment and speculators are the public enemy number one. The collaborating opposition is claiming a transaction tax or they won't accept the rescue package. Unfortunately more and more members of the coalition parties agree with the opposition. In the end the pressure on chancellor Merkel will be too strong. There's no way that GB or switzerland (not EU) will install a transaction tax but germany is "brave" enough to try a solo attempt.
I don't want to discuss who is really responsible...
Financial institutions will then just develop something else to trade that avoids the ftt. As an example of this look at NADEX where you are trading fully paid for contracts for $100 each (each contract is worth $1 per pip) so if you are trading 10 of these contracts ($10 per pip which is roughly equivalent to a standard lot in the spot market) you are paying .50 per turn.

Now certainly if an ftt were implemented on a global basis there were more than likely be less liquidity, and wider spreads.
  • #7
  • May 18, 2010 6:48am May 18, 2010 6:48am
Quoting zoogle
There's always going to be speculator friendly, banking secrecy guarding havens around the world. Switzerland, Hong Kong, Isle of Mann, etc. No worries chaps.
I totally agree with you. Any new regulation on the part of politicians will only push market competition to unregulated countries. For traders and brokers it's a win-win. Take witness of the current issue with CFTC (10:1 limiting), brokers have realize the political machine has it's sights on them, and even though there is a chance that the 10:1 ruling may not get passed brokers and traders are not taking any chances on their future as the average broker/trader has picked up and moved shop overseas. So whether the 10:1 rule passes or not, by next year the majority of traders will not have a trading presence in the US. The future will only get worst for traders so why take a chance of staying now.
  • #8
  • May 18, 2010 12:42pm May 18, 2010 12:42pm
I wonder who will collect that tax? Is my broker supposed to do that?
  • #9
  • May 18, 2010 1:58pm May 18, 2010 1:58pm
If a tax passes, less people will trade, spreads will increase and liquidity will be lower. The rich will get richer and the poor poorer.
  • #10
  • May 18, 2010 2:04pm May 18, 2010 2:04pm
Today the german government has passed the rescure package and in return the coalition agrees to promote the transaction tax internationally.
All I can say is: Good luck guys.

Stand your ground GB, USA, Sweden, Canada...
  • #11
  • May 18, 2010 2:06pm May 18, 2010 2:06pm
Quoting Jhig
I totally agree with you. Any new regulation on the part of politicians will only push market competition to unregulated countries. For traders and brokers it's a win-win. Take witness of the current issue with CFTC (10:1 limiting), brokers have realize the political machine has it's sights on them, and even though there is a chance that the 10:1 ruling may not get passed brokers and traders are not taking any chances on their future as the average broker/trader has picked up and moved shop overseas. So whether the 10:1 rule passes or not, by next...
Any regulation of the financial markets in one country will simply result in traders moving their accounts to countries that do not have the offending regulation. The way the US and Europe are adding more and more regulation, Shanghai, Singapore or Hong Kong will the best place to trade.
  • #12
  • May 18, 2010 2:37pm May 18, 2010 2:37pm
Quoting MCFly
Today the german government has passed the rescure package and in return the coalition agrees to promote the transaction tax internationally.
All I can say is: Good luck guys.

Stand your ground GB, USA, Sweden, Canada...
I have heard from some criminals who promote their loosing EAs.... as long as they promote only I will be confident.
  • #13
  • May 19, 2010 2:05am May 19, 2010 2:05am
The German Bundesbank does not agree on the tax, and it pretty much owns the German finance, including the ongoing "lending package" to Greece..

So that might stop them for a while...In the moment they are looking for international support (not a happening thing), to show to the public that they are trying, and pushing some other "tough" measures on Hedge Funds and Co. (which doesnīt even scratch them)..

Moving your account overseas, outomatically makes you illegal, if you donīt pay the tax...
Maybe we should try the national lottery,no tax, they own the monopoly, nice and clean.....and itīs a win win situation.... for the government....
  • #14
  • May 19, 2010 5:20am May 19, 2010 5:20am
Quoting cuchuflito
Moving your account overseas, outomatically makes you illegal, if you donīt pay the tax...
I don't know anything about tax, so it is an honest humble question.

Why would transaction tax be applicable on accounts in different legislations?
  • #15
  • May 19, 2010 8:43am May 19, 2010 8:43am
Germany got a round of applause for the wise decision to ban uncovered short selling without consulting with the other EU members.
  • #16
  • May 20, 2010 2:54am May 20, 2010 2:54am
Quoting MCFly
Germany got a round of applause for the wise decision to ban uncovered short selling without consulting with the other EU members.

Yes, they expect to "fight against the markets" and win....(ever tried that on your depot??).

Transaction tax is pretty certain too, they want to push the G20 to join (most wonīt)..to avoid loosing the business.....to UK , US and Asia...
The only hope left, is that to avoid the last, they might keep it low...hopefully below 0,05.
Problem is Germanyīs conservatives are strongly loosing ground to the socialist, and they want more!!
Austria starts 2011, they all want to dicuss implementation issues in summer, so expect it for sure next year...!..all over Europe.

Smart politicians: they blew their budgets with debt, now blame the "bad speculators" for it, and want to show the public "that they will protect them from the bad boys"..stupid populistic measures is what they master and understand...they "speculate" on votes.

Took me 10 years of "blood sweat and...fun"...to come up with a profitable system...If they pass a 0,05 levy, my system is history..
  • #17
  • Last Post: May 20, 2010 7:12am May 20, 2010 7:12am
I wouldn't be surprised (in the current climate) to see some sort of transaction/Tobin tax introduced, but i imagine by the time it's implemented and gone through the various filters of governance, it will be a thoroughly watered-down version of what the champagne socialists are after.

Have you seen these jokers?
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