prospreads.com

I either decalre it is gambling and it is illegal or i say it is financial trading then i should pay tax at some point
If you are in the red one year, can you deduct losses from taxes. I would be very surprised if this would be the case in you country.
 
If you are in the red one year, can you deduct losses from taxes. I would be very surprised if this would be the case in you country.
1 year in red ?I dont think so but maybe , i didnt pay my taxes yet :cheesy:
 
In Europe SB is still considered to be gambling, it is not illegal. Yes, I guess, if you solely depend and have a constant income from SB (large income), I think you can be liable for taxation. No use spread betting in that case as you cannot deduct losses.

This is my point , i am talking about trading for living as a serious profession not for fun ...
 
Commission comes way down for size
It's a dma platform wrapped up in a spreadbetting business model

You wanna go non-dma (ie IB) ? That's down to you

Yes you hit the nail on the head. Tax-free earnings vs taxable earning. Its a no brainer to me.
 
Yes you hit the nail on the head. Tax-free earnings vs taxable earning. Its a no brainer to me.
It depends on the trader , for me cuz i am active it is much cheaper for me to pay taxes instead of huge commissions
 
I want to make a simple comparison on the FTSE 100

Lets say you pay fixed 20 % tax on annual net profits if u trade with a broker and u really dont pay any taxes if you trade with prospreads .

1- if u trade 100 RTS monthly u pay 1000 pound in comm with prospreads and 340 pound with IB = extra 660 pound monthly = 7920 pound , which means if u make more than 39600 pounds in net profit it will be cheaper for u if u trade with prospreads and if u make less it will cheaper if u pay tax .

2- If u trade 300 RTS monthly u pay 1500 pound in comm with prospreads and 930 maybe less with IB = extra 570 monthly = 6840 pounds in a year , which means if u make more than 34200 pounds in net profit at the end of the year it will be cheaper if u trade with prospreads and if u make less it will be chaeper if u trade with a broker .


this is the FTSE , ofcourse with the Dow and oil it will get really ugly ...
 
It depends on the trader , for me cuz i am active it is much cheaper for me to pay taxes instead of huge commissions

Tar

I need to get to the bottom of this. Why is it that I just don't get it?

Let me say I make a profit of £200 on 1 contract of FTSE. At a spread of 1 point the cost of transaction is £10 at the moment and will fall to £5 when I hit 200 trades.

Unless one is a skimmer/scalper taking profits at 2 points advance in FTSE, I don't see £5 on £195 profit as a huge commission. I save tax @ at least 20% rate so thats additional benefit of £40.

Someone enlighten me please.
 
Tar

I need to get to the bottom of this. Why is it that I just don't get it?

Let me say I make a profit of £200 on 1 contract of FTSE. At a spread of 1 point the cost of transaction is £10 at the moment and will fall to £5 when I hit 200 trades.

Unless one is a skimmer/scalper taking profits at 2 points advance in FTSE, I don't see £5 on £195 profit as a huge commission. I save tax @ at least 20% rate so thats additional benefit of £40.

Someone enlighten me please.
u will not pay tax on every trade only on your annual net income ...
 
Tar

I need to get to the bottom of this. Why is it that I just don't get it?

Let me say I make a profit of £200 on 1 contract of FTSE. At a spread of 1 point the cost of transaction is £10 at the moment and will fall to £5 when I hit 200 trades.

Unless one is a skimmer/scalper taking profits at 2 points advance in FTSE, I don't see £5 on £195 profit as a huge commission. I save tax @ at least 20% rate so thats additional benefit of £40.

Someone enlighten me please.

In reality it's more complicated than that, but if you're trading longer time frames and bigger targets you don't really benefit much from the speed of the Prospreads platform, so why not just use ordinary spread bet? You'll have just 1pt spread on FTSE and DAX, 2pt on Dow/YM, and shouldn't have too many problems with requotes and rejections.
 
Tar

I need to get to the bottom of this. Why is it that I just don't get it?

Let me say I make a profit of £200 on 1 contract of FTSE. At a spread of 1 point the cost of transaction is £10 at the moment and will fall to £5 when I hit 200 trades.

Unless one is a skimmer/scalper taking profits at 2 points advance in FTSE, I don't see £5 on £195 profit as a huge commission. I save tax @ at least 20% rate so thats additional benefit of £40.

Someone enlighten me please.
The problem is that you have to make 200 contracts a month in order to pay only £2.5 commission, 200 contracts is quite a lot. If you calculate on what you pay in commission, you pay 0.5 spread=£5 (0-200). If your entry target in the real market is 0.5 spread, this will equal to 1 point spread, the commission included. Quite good, compared to other SB's as you are trading the real Z-future. On the other hand, if your entry is at 1 whole point (2x0.5 tick) real market spread this will equal to 1.5 spread included the commission. Compare this to IB commission on the FTSE when you are comparing it with Prospreads. Paying tax is not a bad thing, also you can deduct losses if you trading ends up in red at the end of the year. Taxes can also in some countries add to you future social benefits as well. I do not trade the FTSE future, please correct me if my calculation is wrong in this matter.
 
Any news on spotfx being offerred on this platform?
 
In reality it's more complicated than that, but if you're trading longer time frames and bigger targets you don't really benefit much from the speed of the Prospreads platform, so why not just use ordinary spread bet? You'll have just 1pt spread on FTSE and DAX, 2pt on Dow/YM, and shouldn't have too many problems with requotes and rejections.

But you will get problems with re quotes and slow fills when you are winning with other SB, not with ProSpreads.
 
Any news on spotfx being offerred on this platform?

We are just waiting for a few things to be upgraded, it has been going on for a while but we dont want to offer anything thats not 100%.
It is coming v-soon.
 
But surely that never, ever happens with Capital Spreads, and other LCG companies?:)

Jack

At ProSpreads we offer DMA, so basically if the mkt is offered or bid you will be filled, instantly. We offer a different method of spread betting to the others.
 
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