Choosing an SB provider

[Stargunner]

I'm writing this post to see if anyone can help me choose an SB provider, but then again maybe someone will tell me SB is not for me.

I'm a small time trader really, I would like to ideally be able to trade 50p per point (for the lifetime of the account) on UK equities and commodities, but I could settle for £1 per point. I don't particularly care about other markets, but I want a good range of UK equities.

I'm not too fussed about all the platforms or low margins, if a provider has good ones, that's nice but it's a lower priority.

I've currently been looking mostly at IG and both City Index and their Finspreads brand.

My main concern with SB firms is how I can't really see them wanting you to win. While angry traders who've made a loss and blame it on the firm aren't the best to rely on, the very high volume of negative reviews of firms worry me. Is there anything I can look out for which means there's a bit less of a conflict, like 'no dealer desk' providers?

 

[counter_violent]

I'm writing this post to see if anyone can help me choose an SB provider, but then again maybe someone will tell me SB is not for me.

I'm a small time trader really, I would like to ideally be able to trade 50p per point (for the lifetime of the account) on UK equities and commodities, but I could settle for £1 per point. I don't particularly care about other markets, but I want a good range of UK equities.

I'm not too fussed about all the platforms or low margins, if a provider has good ones, that's nice but it's a lower priority.

I've currently been looking mostly at IG and both City Index and their Finspreads brand.

My main concern with SB firms is how I can't really see them wanting you to win. While angry traders who've made a loss and blame it on the firm aren't the best to rely on, the very high volume of negative reviews of firms worry me. Is there anything I can look out for which means there's a bit less of a conflict, like 'no dealer desk' providers?

Spread bet firms have moved on in leaps and bounds from the early days. You really don't need worry about being a winner as there are always more losers than winners, if the SB company is making a profit and the govt is getting it's share via tax revenues, then everyone is happy.

 

[Stargunner]

Well as far as I can tell, if you're in the UK, using a UK firm, there's no income tax, CGT, or stamp duty to be paid in any event. HMRC consider it to be gambling winnings, despite being regulated by the FCA rather than the Gambling Commission.

Even a full time professional gambler's winnings aren't always taxable. It's very up in the air though, and the Archbishop of Canterbury is calling spread betting an avoidance scheme now....

I will look more into using spread betting firms if they don't do unscrupulous things like send your bets to a trading desk for minutes if you're a regular winner, thus causing slippage.

 

[counter_violent]

I'm going to spend some time clarifying the sb tax free issue. Some say it is, other say not, and others say it depends!

Started a new thread although I think the subject has been done to death previously.

http://www.trade2win.com/boards/spr...betting-tax-free-profits-not.html#post2256610

 

[Liquid validity]

http://www.trade2win.com/boards/spr...betting-tax-free-profits-not.html#post2256618

http://www.trade2win.com/boards/spr...betting-tax-free-profits-not.html#post2256620

 

[counter_violent]

ok ty for those links. Only question that i can see as still outstanding is in reference to the point about subsistence income. Ie if you have another base income that covers most life costs, sb not taxable. The question would be, what happens of you sb income then over the years begins to outstrip your base income?

This might help.

http://www.financial-betting.com/course/is-spread-betting-tax-free-who-pays-the-tax