Tax free futures trading using TT, Stellar, CQG....iBetfinancials

iBet Financials is now offering futures accounts to external clients.

This is a unique product within the UK. We are FSA regulated and London based.

Futures accounts with iBet Financials have a tax free financial spread betting wrapper. This is a "back-office" addition ONLY. Trade futures just as you do now.

*IMPORTANT POINTS*



1. All trades go directly to the exchange with no speed delay.

2. There is no additional spread - you pay exchange prices.

3. iBet allows for flexibility regarding choice of high speed platforms with which to place spread bets as the service is compatible with most industry-standard software platforms. The wide choice of platforms (TT/Stellar/CQG/Phone) allows traders a variety of ways in which to place orders, from simple point and click, to auto-spreaders and even fully automated systems.

4. We offer a variety of APIs to support algorithmic strategies.

5. Your trades are cleared through iBet Financials parent company - a leading UK based integrated clearing, broking and investment service provider for professional traders and investors around the world.

**

We have operated on this tax free setup for our internal traders for the last 3 years, and external clients since the start of 2011. We have written confirmation from HMRC that our activities are tax free. Further details available on request.

Due to the tax-free nature of the product, iBet Financials is most attractive to profitable professional futures traders.

There is a minimum required opening balance and we offer accounts by invitation only.

Commission levels depend on your monthly volume and products traded. These are usually comparable with standard futures commissions.

For further details, please email iBet Financials at:

[email protected]

Bit confused is this an OTC spread betting product or real direct Market access Futures trading?
Also for non UK residents is the UK tax thing relevant?

It is real DMA futures trading.

Once the trade is complete, the trade is cleared as a spread bet with the client, making the trade tax free for UK residents.

If you had two TT users sat next to each other, both trading the same instruments, there would be no difference in the experience for the two traders. Both would have the same speed/price/execution etc.

Only afterwards when viewing the trading statement for the day would the clients see any difference.

The trader with a futures account would see his trades, commissions, and his P/L would be taxable.

The trader with the futures account within a spread bet wrapper would see identical trades, the spread betting commissions (which includes all the futures commissions - exchange fee / clearing fees etc), but his profits would be tax free under UK law.

(If you are a non-UK resident, it is most likely that this benefit will not apply to you but you should check with your tax accountant.)

Some example TOTAL (Incl. Exchange fees/clearing etc) commissions per lot:

STIRs - From £0.40
Bund/Bobl/Schatz - From £0.32

FTSE - From £0.44
e-Mini S&P - From £0.48

As you can see, these rates are very close to standard futures rates.

Please PM me for other rates or email [email protected]

Those prices are per side? How much is the platform fee?

ibetfinancials said:

It is real DMA futures trading.

Once the trade is complete, the trade is cleared as a spread bet with the client, making the trade tax free for UK residents.

If you had two TT users sat next to each other, both trading the same instruments, there would be no difference in the experience for the two traders. Both would have the same speed/price/execution etc.

Only afterwards when viewing the trading statement for the day would the clients see any difference.

The trader with a futures account would see his trades, commissions, and his P/L would be taxable.

The trader with the futures account within a spread bet wrapper would see identical trades, the spread betting commissions (which includes all the futures commissions - exchange fee / clearing fees etc), but his profits would be tax free under UK law.

(If you are a non-UK resident, it is most likely that this benefit will not apply to you but you should check with your tax accountant.)

Some example TOTAL (Incl. Exchange fees/clearing etc) commissions per lot:

STIRs - From £0.40
Bund/Bobl/Schatz - From £0.32

FTSE - From £0.44
e-Mini S&P - From £0.48

As you can see, these rates are very close to standard futures rates.

Please PM me for other rates or email [email protected]

Click to expand...

...for CQG Trader for example, the basic web based one.

pboyles said:

...for CQG Trader for example, the basic web based one.

Click to expand...

The CQG Integrated Client Base Package is £300 pm.

(You can then add any extras as required - please PM for individual enquiries and I will be happy to help. Alternatively email iBet Financials on [email protected] or 0207 390 4235)

And yes, prices are per lot per side...

Looks like a good product, good luck.

iBet financials also backs proven successful traders as well as offering desk space and office where required.

For further information on how to benefit from the tax advantages of spread betting please contact [email protected] or call 0207 390 4235

The more I ponder this the more I think why would anyone with an account £10k+ who's already trading futures not trade with iBet? And if your account is 6 figures or more (and trading futures) then you're mad to continue trading futures instead of iBet because as they say there is no difference in the fills.

Also, anyone trading reasonable size via spread bets, why wouldn't they use iBet? Spread bets are all very well but often their spreads can cause frustration and tie that with the fact that you can't bid or offer the market (how many good fills have we all missed because of that) and it can turn a sane person mad.

And how the hell did the taxman agree to it?

Good luck iBet I say because I cannot see a downside to their offering.

Tax free DMA trading? This offer looks too good to be true. What is the catch?

anley said:

The more I ponder this the more I think why would anyone with an account £10k+ who's already trading futures not trade with iBet? And if your account is 6 figures or more (and trading futures) then you're mad to continue trading futures instead of iBet because as they say there is no difference in the fills.

Click to expand...

The main issue would safety of funds above the FSA guaranteed limit.. how safe would you feel having say 250K or 1 million with them?

The second one for me, as i use automation, is how good their api order engine (and IT infrastructure in general) actually is.. again not saying i know of anything wrong with it but would need to spend time evaluating their platform against other direct access brokers.

The third thing is commissions, based on what has been said, iBet seem to be very competitive here.

Also, anyone trading reasonable size via spread bets, why wouldn't they use iBet? Spread bets are all very well but often their spreads can cause frustration and tie that with the fact that you can't bid or offer the market (how many good fills have we all missed because of that) and it can turn a sane person mad.

Click to expand...

If you are profitable with non DMA spread betting, chances are you arent day trading, so it probably doesnt make a huge diference if you use iBet or someone like IG.

Hi iBet,

Please can you explain me how it works?

Like, say 2 traders next to each other. bith doing 10yr notes. One with a FCM and another with iBet. Both using same platform.

Both traders place limit orders and get filled (obviously not on the same contract the other side but for argument).

What happens from there? How do you wrap one execution up in a spread bet while the other one executed on the exchange without any latency or anything?

please explain how it works. thanks

anley said:

The more I ponder this the more I think why would anyone with an account £10k+ who's already trading futures not trade with iBet? And if your account is 6 figures or more (and trading futures) then you're mad to continue trading futures instead of iBet because as they say there is no difference in the fills.

Also, anyone trading reasonable size via spread bets, why wouldn't they use iBet? Spread bets are all very well but often their spreads can cause frustration and tie that with the fact that you can't bid or offer the market (how many good fills have we all missed because of that) and it can turn a sane person mad.

And how the hell did the taxman agree to it?

Good luck iBet I say because I cannot see a downside to their offering.

Click to expand...

Hi Anley,

Thanks for your comment. Would you like a job?!

Our usual account minimum is £35,000. We may look at smaller accounts in the future but while we are the only futures broker in the UK (and world to my knowledge,) offering futures from a professional platform within a tax-free spread betting wrapper, this is the minimum balance we currently start at.

I agree with you that larger size spread bet traders, if shorter term trading, would be far better off on our setup. If you are taking longer term positions, the advantages are still there but less so.

The taxman says spread betting is tax free. At no point did HMRC say spread betting providers had to have wide spreads, a poor retail platform, 3 second execution, requotes, platform freezes etc.

Please contact us at [email protected] or 0207 390 4235 if you are interested in an account with iBet Financials.

TimYoung said:

Tax free DMA trading? This offer looks too good to be true. What is the catch?

Click to expand...

Hi TimYoung,

There is no big catch. The costs of the spread bet wrapper are fairly minimal but do exist. The huge majority of profitable traders however are considerably better off due to the tax free aspect despite the marginally higher (though not always) costs.

Please contact us at [email protected] or 0207 390 4235 should you be interested in applying for an account with us.

donaldduke said:

The main issue would safety of funds above the FSA guaranteed limit.. how safe would you feel having say 250K or 1 million with them?

The second one for me, as i use automation, is how good their api order engine (and IT infrastructure in general) actually is.. again not saying i know of anything wrong with it but would need to spend time evaluating their platform against other direct access brokers.

The third thing is commissions, based on what has been said, iBet seem to be very competitive here.



If you are profitable with non DMA spread betting, chances are you arent day trading, so it probably doesnt make a huge diference if you use iBet or someone like IG.

Click to expand...

Thanks for your comments donalduke.

In regards to the FSA guaranteed limit, this applies to us along with all over futures brokers.

We offer a variety of APIs to support algorithmic strategies. I will PM you further details.

I agree with you on the longer term trading point although our platform and spreads still remain more professional and competetive respectively in comparison to spread betting firms.

DashRiprock said:

Hi iBet,

Please can you explain me how it works?

Like, say 2 traders next to each other. bith doing 10yr notes. One with a FCM and another with iBet. Both using same platform.

Both traders place limit orders and get filled (obviously not on the same contract the other side but for argument).

What happens from there? How do you wrap one execution up in a spread bet while the other one executed on the exchange without any latency or anything?

please explain how it works. thanks

Click to expand...

Hi DashRiprock.

Thanks for your questions. I will PM you wiht the exact specific details of how this works, but in summary....

Both orders are executed on the exchange at the same speed/price. Once the trade is completed, your iBet trade is settled as a financial spread bet as oposed to a futures trade. We settle the futures trade under our account so it is iBet who actually holds the futures trade. You simply hold a tax free spread bet with us for the identical amount.

Hope this helps.

Duck, it's the Kyte Group and they're financially solid.

Mr iBet, thanks for the job offer but I've got to decline

Good luck anyway and like I said, I cannot see a downside for anyone that trades futures professionally.

ibetfinancials said:

Our usual account minimum is £35,000.

Click to expand...

What are your current intra day margin requirements?

For say, DAX, e-mini S&P, and Crude Oil (cme/nymex) futures. im just trying to get an idea how yours compare with other futures brokers and SB's.

ibetfinancials said:

Hi Anley,

Thanks for your comment. Would you like a job?!

Our usual account minimum is £35,000. We may look at smaller accounts in the future but while we are the only futures broker in the UK (and world to my knowledge,) offering futures from a professional platform within a tax-free spread betting wrapper, this is the minimum balance we currently start at.

I agree with you that larger size spread bet traders, if shorter term trading, would be far better off on our setup. If you are taking longer term positions, the advantages are still there but less so.

The taxman says spread betting is tax free. At no point did HMRC say spread betting providers had to have wide spreads, a poor retail platform, 3 second execution, requotes, platform freezes etc.

Please contact us at [email protected] or 0207 390 4235 if you are interested in an account with iBet Financials.

Click to expand...

You're not the only company who offers Futures DMA trading within a spreadbet wrapper, and your competition has it's own platform, included is FX currinex and min account starts at £1k, so your £35k min will probably rule out 99% of the readership here.

Can you say about platform fees and commish rates?