what type of trading account?

[midge25]

I am not new to trading and have had a spreadbet acount on and off for a number of years.

after reading about the ig and capital spread problems (I to have been stung by capital spreads)

I would like to know what the best type of acount is to open? I want to trade forex and index, but am aware that a spreadbet acount there will only be one winner, who can I open an account with, where it is not in their interest to take their profit? I trade from the uk and am loking to take a couple of points per trade, also on a tax free basis if possible.

 

[£10kLoser]

I'd wait until (if) you get stung by IG.

Only way to be tax free is spread bet and the only company that don't effectively trade against you is futuresbetting.com with their £2.5k minimum deposit and high charges.

I used to campaign for spread betting on the grounds of saving tax but now that tax is only levied at 18% on profits from a standard broker, my argument lacks merit these days!

It's very likely that you'll save 18% with a good direct access broker. Which one depends on what you trade.

 

[midge25]

Thanks for that.

I am looking to trade forex and Index are there any direct brokers that would cover this? May experience is for self select share trading and spreadbet accounts only, so i dont know much about the direct access accounts that are on offer, or how they work. Are they similar to say self select accounts? i.e i am buying and selling from someone else, so am not competing with my account holder, like in a spreadbet where it is in there interest for em to lose?

 

[bobmiller]

CFD trading is one option, but make sure you go with a Direct Market Access provider. What £10KLoser I think means is that the prices you trade from, are coming directly from the market and are not getting requoted. As a result the spreads aren't widened or your not being requoted and so you don't miss out on profit.
Providers I know that are good are GNI Touch and IG. They seem to be heading the field in CFD trading. At GNI touch they don't run a book against their clients so you won't get screwed over! My cousin has an account with them, and says they provide you with your own account handler who looks after your account, helps you out. Also telephone trading is free as well.

 

[Joulian]

What is a CFD?

 

[BSD]

CFD = Contract For Difference - Traderpedia

 

[darktone]

I to have been stung by capital spreads

how were you stung out of interest?

 

[pholcroft]

Hi guys, I am very new to trading so please forgive my ignorance but I have only ever previously heard good things about spread betting yet the majoirty of people on here seem to have had negative experiences. I would really appreciaite it if someone would give a bit of an overview as to the merits and disadvantages of spread betting as I have used captial spreads for a few months and not had a problem so far but now that I am reading that so many others have I am a bit worried.