Spread betting at FXCM

[silverpuma]

I see what you mean. You'll need to figure out how many lots should be traded so that a 30 pip move against you is equal to £500. I created a formula you can use to figure this out. You basically just have to plug in the figures you already have, as well as enter in the pip value found in the simple dealing rates window, and you have the number of lots. Let me know you an example using the 30 pip stop loss for £500 loss you mentioned above. We will also assume you are trading GBP/USD because the currency pair will determine the pip value.

1. This is the forumla:

Plug the numbers from your example into the formula:

# of lots = 25.25

The formula is basically the same as the one you are using except that with FXCM you have to take into account the pip values to then determine how many lots to trade.

2. A couple things to consider:

I used the pip value for a standard (spreadbet) account which trades in increments of 10k. The lot size of 25.25 means you would trade 25.25 lots of 10k. It's not possible to trade fractions of a 10k lot in the spreadbet account, so the total number of 10k lots to be traded is 25. Total position size would be 250k.

If you work through the numbers again with 25 lots of 10k, your total loss on a 30 pip stop loss is £495. So close, but not exact since the smallest trade size is 10k and you're rounding to the nearest 10k.

I hope that helps.

-Jason

Thanks Jason and all makes perfect sense all I need now is to get you to match IG spreads......but that's for another day

 

[Jack Hughes]

Thanks Jason and all makes perfect sense all I need now is to get you to match IG spreads......but that's for another day

Yes, we need 1pt EU, 2pt GU, 1pt FTSE/DAX/CAC, 2pt US30 (although 1pt US30 would be preferable!).

 

[silverpuma]

Yes, we need 1pt EU, 2pt GU, 1pt FTSE/DAX/CAC, 2pt US30 (although 1pt US30 would be preferable!).

Amen and Amen!!!! Yes Jack we need Worldspreads (and perhaps others) 1 pip on the Dow as well

 

[Jack Hughes]

Amen and Amen!!!! Yes Jack we need Worldspreads (and perhaps others) 1 pip on the Dow as well

WS is 1pt Dow at the moment. I think, but that's not much use with such a creaky old platform

 

[montmorencyt2w]

Hi silverpuma,

It is not classified as a spreadbet account, so it will be subject to UK taxes. I haven't heard of a reason as to why we don't offer micro accounts in the spreadbet variety, but I'll let the micro team know there have been some requests.

Only the standard 10k account can be opened as a spreadbet account. Minimum lot size being a 10k mini lot.

-Jason

I think this may have been one of my reasons for thinking that you were still really dealing with the US arm of the firm, even if you went through a co.uk address. Why would a UK firm not offer it as spreadbetting seing as they already do offer a spread-betting account? Spread Betting appeals to newbies/small customers; FXMicro is aimed at newbies/small customers. Bizarre not to be offered as a SB account.

 

[Jack Hughes]

I think this may have been one of my reasons for thinking that you were still really dealing with the US arm of the firm, even if you went through a co.uk address. Why would a UK firm not offer it as spreadbetting seing as they already do offer a spread-betting account? Spread Betting appeals to newbies/small customers; FXMicro is aimed at newbies/small customers. Bizarre not to be offered as a SB account.

Something to do with SB having different price feeds, possibly?

re. platforms, is Strategy Trader for spread bet, because the indices don't seem to show?

 

[Vaco]

I think this may have been one of my reasons for thinking that you were still really dealing with the US arm of the firm, even if you went through a co.uk address. Why would a UK firm not offer it as spreadbetting seing as they already do offer a spread-betting account? Spread Betting appeals to newbies/small customers; FXMicro is aimed at newbies/small customers. Bizarre not to be offered as a SB account.

Is there really a need for a fxmicro account to be a spreadbet accout, its hardly likely that these accounts will make a profit exceeding the cgt personal allowence in any one year, and if the customer does manage to get to that point they can always switch.

Those that are worried about a 5k min account size really dont need to worry about tax.

 

[montmorencyt2w]

Is there really a need for a fxmicro account to be a spreadbet accout, its hardly likely that these accounts will make a profit exceeding the cgt personal allowence in any one year, and if the customer does manage to get to that point they can always switch.

Those that are worried about a 5k min account size really dont need to worry about tax.

You have made a similar point before, and I will repeat my reply:


Would this not force you to still make a tax-return to prove/demonstrate that you are beneath the CGT limit?

Now for those full-time traders who are already making a tax-return, this is probably no extra burden. But for part-timers who have another job or source of taxable (under P.A.Y.E.) income, it would be a burden.

And that's not even getting into the issue of whether the Revenue count your trading income as a capital gain or as income.

Not to mention possible changes to CGT allowances.

Potentially, it's a minefield for the uninitiated.

Using spread-betting keeps it simple.

 

[Vaco]

point taken, its much simplar to go the spreadbetting route for the reasons you mentioned

 

[Jason Rogers]

Thanks Jason and all makes perfect sense all I need now is to get you to match IG spreads......but that's for another day

Something to do with SB having different price feeds, possibly?

re. platforms, is Strategy Trader for spread bet, because the indices don't seem to show?

Yes, Strategy Trader will work with any spreadbet account as long as hedging has been disabled first. I did a test on a spreadbet demo and can see oil, gold, and the indices. One thing to note, the accounts come pre-set with a list of currency pairs and indices. If you want to add or remove them, you will need to do so first through the FX Trading Station II in order to get the personalized list to display through Strategy Trader.

-Jason

 

[Jack Hughes]

Yes, Strategy Trader will work with any spreadbet account as long as hedging has been disabled first. I did a test on a spreadbet demo and can see oil, gold, and the indices. One thing to note, the accounts come pre-set with a list of currency pairs and indices. If you want to add or remove them, you will need to do so first through the FX Trading Station II in order to get the personalized list to display through Strategy Trader.

-Jason

Indices, etc, showing on main TS platform, but only FX on ST.

Don't understand what you mean about disabling hedging, and nothing shows in Help

 

[Jason Rogers]

Indices, etc, showing on main TS platform, but only FX on ST.

Don't understand what you mean about disabling hedging, and nothing shows in Help

Hi Jack,

The hedging feature in a live account can be disabled through www.myfxcm.com . Once logged in, there's a link titled "Hedging" that you can click on which will take you to an enable/disable button.

All of the demos through FXCM UK have hedging enabled and we're not able to disable hedging on a demo. Instead, you can try a demo through FXCM US which has hedging disabled http://www.fxcm.com/open-free-100k.jsp

-Jason

 

[maiden22]

Would this not force you to still make a tax-return to prove/demonstrate that you are beneath the CGT limit?

No. No tax to pay, no need to do anything.

 

[montmorencyt2w]

No. No tax to pay, no need to do anything.

If you say so guv'nor.

Not sure I would want to risk getting on the wrong side of Her Maj's reverential customs though myself. While one might also risk this with spread-betting, at least with the latter, one can point to the firm's own blurb's saying that it's tax free. With any other form of income, by default it's always potentially taxable, so I would think the burden of proof is then on you, the potential taxpayer, to prove it isn't. With spread-betting, the burden of proof is on the Revenue to prove that it is.


Anyway, must get back and work on some off settable losses.

 

[maiden22]

A question for Jason please.

Are you planning to increase the 20 pairs subscription list limit? I watch more than that and it is impossible to use because when you replace one of the 20 to look at another, all of the doodling on the prior chart disappears. Then if you want to return your list to its original state, the data on the new chart is lost.

It is obviously very time consuming to keep drawing the same stuff in over and over again - is it possible to bump up the limit to say 30, or allow 2 list templates to be saved, or something to get round the problem please? Other than this (and it might be down to my stupidity, apologies if so) I think your charting package is excellent and its user-friendliness is tempting me away from IG.

But IG does have the benefit of allowing me to save my charts and squiggles for more than 20 pairs.

Save us FXCMman!

 

[maiden22]

If you say so guv'nor.

Not sure I would want to risk getting on the wrong side of Her Maj's reverential customs though myself. While one might also risk this with spread-betting, at least with the latter, one can point to the firm's own blurb's saying that it's tax free. With any other form of income, by default it's always potentially taxable, so I would think the burden of proof is then on you, the potential taxpayer, to prove it isn't. With spread-betting, the burden of proof is on the Revenue to prove that it is.


Anyway, must get back and work on some off settable losses.

LOL

No really, if you have made a gain that falls below the annual allowance, you have no need to declare it.

It is just the same if you receive additional income that might give rise to an additional tax liability - if it doesn't, nothing to declare. In this case you should be careful if you're close to the border - a lot of income is received net and should be grossed up to determine your overall taxable income.

If you are sent a tax return, you would have to fill it in accurately and declare items like the above, whether or not you have additional tax to pay. However, if it is not necessary you can request that they stop sending you one (they'll do this anyway after a couple of years of sending your return in with nothing extra to pay).

Long short, if you don't have a liability, and have not been sent a return, you've got nothing to do.

 

[Jack Hughes]

Hi Jack,

The hedging feature in a live account can be disabled through www.myfxcm.com . Once logged in, there's a link titled "Hedging" that you can click on which will take you to an enable/disable button.

All of the demos through FXCM UK have hedging enabled and we're not able to disable hedging on a demo. Instead, you can try a demo through FXCM US which has hedging disabled http://www.fxcm.com/open-free-100k.jsp

-Jason

Disabled hedging, still only FX showing in ST.

 

[Jason Rogers]

A question for Jason please.

Are you planning to increase the 20 pairs subscription list limit? I watch more than that and it is impossible to use because when you replace one of the 20 to look at another, all of the doodling on the prior chart disappears. Then if you want to return your list to its original state, the data on the new chart is lost.

It is obviously very time consuming to keep drawing the same stuff in over and over again - is it possible to bump up the limit to say 30, or allow 2 list templates to be saved, or something to get round the problem please? Other than this (and it might be down to my stupidity, apologies if so) I think your charting package is excellent and its user-friendliness is tempting me away from IG.

But IG does have the benefit of allowing me to save my charts and squiggles for more than 20 pairs.

Save us FXCMman!

Hi Maiden!

If you would like to view more than 20 pairs at once please send an email to [email protected] and we can remove the restriction. If this is for a demo account, send me an email with the username ([email protected]) and I'll see what I can do.

-Jason

 

[Jason Rogers]

Disabled hedging, still only FX showing in ST.

Hey Jack,

Not good . Can you send me an email ([email protected]) with the account number so I can check on it to see what the problem is.

Thanks,

Jason

 

[maiden22]

Hi Maiden!

If you would like to view more than 20 pairs at once please send an email to [email protected] and we can remove the restriction. If this is for a demo account, send me an email with the username ([email protected]) and I'll see what I can do.

-Jason

Thanks Jason, it's a live account and I follow about 30 pairs plus gold and oil, so I'll email them as you suggest.

Thank you for the swift and positive response, much appreciated.

Just for feedback purposes, your charting facilities took a bit of getting used to, but now that I have I think they're excellent.