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Author Topic: About Spreadbetting and this section...  (Read 6955 times)

Offline donnaforex

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About Spreadbetting and this section...
« on: February 05, 2011, 03:55:11 PM »
A number of us have started branching out into spreadbetting. I am a long time spreadbettor myself, I have been doing it longer than I have been doing forex! Spreadbetting is very much like ordinary trading, apart from the fact that it is easier to understand! Instead of trading 1 lot for instance, you might place a "bet" of 1 per point/tick. It is much easier to properly calculate risk when spreadbetting. Spreadbetting offers several other benefits over traditional trading platforms too, such as holding tax free/tax reduced status in some countries. I believe there is even one broker offering an MT4 platform with spreadbetting services which opens up the possibility of trading all your favourite EA's.

Some spreadbet platforms offer other services too, such as binary betting, and some forms of pure gambling which one should be wary of such as bets where you can predict which number the next 10 ticks will end in!

Spreadbetting is not usually accessible to clients in the USA at this time due to local laws.

Please note that all the usual rules regarding advertising apply to this section of the forum. However, any spreadbet providers or their direct employees are of course as welcome as ever to come here and offer customer support (with no advertising!) if they wish.
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Offline ronny

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Re: About Spreadbetting and this section...
« Reply #1 on: July 17, 2011, 11:20:23 PM »
Hi Donna,
               You mention that a spreadbetter broker is offering an MT4 platform. I had a search around, but I didn't see anywhere. Could you direct me in the right direction.


Offline DamBuster

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Re: About Spreadbetting and this section...
« Reply #2 on: July 18, 2011, 04:44:45 AM »
Hi Donna,
               You mention that a spreadbetter broker is offering an MT4 platform. I had a search around, but I didn't see anywhere. Could you direct me in the right direction.

Here you go Ronny: http://www.donnaforex.com/forum/index.php?topic=3112.0

Offline ronny

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Re: About Spreadbetting and this section...
« Reply #3 on: July 23, 2011, 06:30:32 AM »
Thx DamBuster..
 
  Tax implications seem uncertain. I think I will stay on the sideline on this one..

Offline ultracat

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Re: About Spreadbetting and this section...
« Reply #4 on: February 13, 2012, 05:08:12 AM »
I've been reading about spreadbetting and frankly I don't understand what the advantage is if you don't live in a tax-free jurisdiction.  I live in Canada where spreadbetting is taxed just the same as forex trading.  Am I missing anything?  Is it possible to earn more or with less risk spreadbetting versus regular forex trading?

Offline donnaforex

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Re: About Spreadbetting and this section...
« Reply #5 on: February 24, 2012, 09:20:45 AM »
You are right, there doesn't seem to be any real benefit to you there in Canada. There may be some benefit if you want to trade some markets with minimal cash (think along the lines of betting on shares instead of purchasing actual shares, less capital needed), but for currency trading if you get no tax advantage then you are right. Here in the UK gains made from gambling are totally tax free (most often, in theory, in reality it can be more complicated in the case of 'professional gamblers'). Obviously this tax saving is a huge advantage if you are any good at trading ;).
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Offline ninja_007

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Re: About Spreadbetting and this section...
« Reply #6 on: March 10, 2013, 08:08:12 AM »
I can't understand the term clearly. If anyone can make me understand fully, please inform me.

Offline ultracat

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Re: About Spreadbetting and this section...
« Reply #7 on: March 11, 2013, 03:31:43 PM »

Offline dandruffx

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Re: About Spreadbetting and this section...
« Reply #8 on: March 14, 2013, 05:10:48 AM »
Thank you for bringing this subject up

What I still do not understand is how will the cost associated with spreadbetting actually increase if you place a stoploss? and do you have to place it in advance

Thank you in advance for your reply

Offline donnaforex

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Re: About Spreadbetting and this section...
« Reply #9 on: March 14, 2013, 06:21:19 PM »
I haven't read this article, but i can think of a couple of reasons why costs increase when placing a stoploss, and it varies depending on the broker:

1. Some brokers charge extra to have a "guaranteed stoploss"... usually an extra 1 pip based on past experience. This guarantees that you get zero slippage and issues with closing your trade at SL. I don't recommend using this option, it costs a lot of money in the long term and i rarely get slippage more than the 1 pip cost of guaranteeing it!

2. There is a margin cost to open a trade on a spreadbet platform. It could be 75x your bet, or whatever is in the brokers terms. If you trade at $1 per point this would mean you need $75 in your account to open that trade. If you place a stoploss more than 75 points away, at lets say 100 points, then you obviously need $100 in your account to cover your exposure rather than the 75 points as per normal open trades with no SL. Brokers all handle trades differently so it's important to check the terms before going ahead and trading... this is one point which does work quite differently to forex where we are used to a standard 100:1 leverage, it varies widely in spreadbetting.

Hope this helps.
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Offline profitmaker

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Re: About Spreadbetting and this section...
« Reply #10 on: March 23, 2013, 09:01:05 AM »
I think spreadbetting is very complicated to understand. As ultracat said that is it possible to earn more from spreadbetting with less risk.

Donna, you briefed very nice but I am still not understand the actual benefits of spreadbetting  :(

Offline donnaforex

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Re: About Spreadbetting and this section...
« Reply #11 on: March 23, 2013, 09:06:19 AM »
The main benefit to spreadbetting is in tax savings. In some countries, gains from "gambling" are tax free (like here in the UK). So if you are a profitable trader it makes sense to do your trades through a spreadbet platform where possible.
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Offline petersurrey

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Re: About Spreadbetting and this section...
« Reply #12 on: March 23, 2013, 09:33:27 AM »
I use GKFX and Alpari SB platforms and not only have they proved to be the most profitable, but as Donna says, all the profits are tax free. The downside is any losses can not be used to offset profits for tax purposes. GKFX has slightly better spreads and both have very quick deposit and withdrawal options through their websites, as well as being FSA regulated. SB platforms can be tricky when using some bots but RobVol works well with them. I always start at the lowest setting and then adjust once you know how the bot manages the settings.

Offline forexfish

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Re: About Spreadbetting and this section...
« Reply #13 on: March 23, 2013, 09:51:19 AM »
I use GKFX and Alpari SB platforms and not only have they proved to be the most profitable, but as Donna says, all the profits are tax free. The downside is any losses can not be used to offset profits for tax purposes. GKFX has slightly better spreads and both have very quick deposit and withdrawal options through their websites, as well as being FSA regulated. SB platforms can be tricky when using some bots but RobVol works well with them. I always start at the lowest setting and then adjust once you know how the bot manages the settings.

Thanks Donna and Petersurrey

Is Alpari SB is not protected by FSA ?

Do you know how Alpari SB spread compare to Alpari standard account ?

What is minimum pip value can be traded at Alpari SB or GKFX platform ?



Offline petersurrey

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Re: About Spreadbetting and this section...
« Reply #14 on: March 23, 2013, 10:31:19 AM »
I use GKFX and Alpari SB platforms and not only have they proved to be the most profitable, but as Donna says, all the profits are tax free. The downside is any losses can not be used to offset profits for tax purposes. GKFX has slightly better spreads and both have very quick deposit and withdrawal options through their websites, as well as being FSA regulated. SB platforms can be tricky when using some bots but RobVol works well with them. I always start at the lowest setting and then adjust once you know how the bot manages the settings.

Thanks Donna and Petersurrey

Is Alpari SB is not protected by FSA ?

Do you know how Alpari SB spread compare to Alpari standard account ?

What is minimum pip value can be traded at Alpari SB or GKFX platform ?


I use GKFX and Alpari SB platforms and not only have they proved to be the most profitable, but as Donna says, all the profits are tax free. The downside is any losses can not be used to offset profits for tax purposes. GKFX has slightly better spreads and both have very quick deposit and withdrawal options through their websites, as well as being FSA regulated. SB platforms can be tricky when using some bots but RobVol works well with them. I always start at the lowest setting and then adjust once you know how the bot manages the settings.

Thanks Donna and Petersurrey

Is Alpari SB is not protected by FSA ?

Do you know how Alpari SB spread compare to Alpari standard account ?

What is minimum pip value can be traded at Alpari SB or GKFX platform ?



Alpari UK is FSA regulated, and has one injunction by not investigating deposits for money laundering purposes more ruthlessly on the one occasion; highlighting that it is worth checking against the FSA site if in doubt - make sure you are logged into the UK platform as Alpari.com takes you to New Zealand.

Minimum trade size for both is 0.1 GBP

Spreads are larger for Alpari SB account vs Classic; but the tax advantages far out way this.

One very important point to remember is that, like some traditional forex platforms, losses on SB platforms can theoretically be infinite; although I am pretty sure GKFX closes out positions before the account is lost in normal trading (please check!); so avoid over leveraging - example if you bet 50 GBP per pip on 5 positions and you get an weekend/news gap of 200 pips ( not unheard of with recent events) you will owe them 50K GBP etc. Try to imagine worst scenario ( 500 pips news/weekend gap..) and don't trade all your funds.
« Last Edit: March 23, 2013, 10:42:35 AM by petersurrey »

 

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