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Luis, IB does not incur transaction tax for hedging trades (market making exemption). This is also the case for the stamp duty reserve tax in the UK, and for the Belgian stamp duty. Regarding your observation on prices, did you compare to a Smart-routed price for the stock?

Here is some more info on IB CFDs http://ibkb.interactivebrokers.com/node/1912 http://ibkb.interactivebrokers.com/node/1783

Hi Luis, let me briefly answer your questions: Yes, IB is the counterparty, and hedges all CFD trades. The price you get is the Smart-routed execution we get in the underlying, just as if you had traded the share itself. Since IB CFD trades are directly linked to trades in the underlying...