Well they have talked about a one time fee , instead of a transaction tax. So thats what he is talking about. It would be much better that way. Anyways, its way premature for this since there are rumblings of people talking about it but no one of substance being named talking about it. Its only preliminary and have no idea what shape the tax or fee will take. So all we can do is wait and see what comes up over the next few weeks if anything.
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
No, they are similar to their respected intruments. For example, I trade currencies. I use a company GFT here in the US. I also have a friend whom I trade with in the UK who uses them. He uses GFT which has cfd/sperad accounts for currencies, same platform as mine. His spreads are exactly the same as mine. Unfortunately CFD'S were deemed anti competitive for US traders by the US( too much competition for the exchanges and dealers) so we can not trade them. A few years ago we were able to trade them in a grey area, but not now after the online gaming bill went into afffect a few years ago we cannot. I am not sure how it would affect something like NADEX formerly hedgestreet which a binary options and spreads done here in the us. Thats as close as we have toward a cfd here in the states, but those spreads are pretty big for currencies and indicies and oil and gold.
True, it could be a risk, check out BETONMARKETS.COM I used them a few years ago when I wa able to before they shut it down for US customers. It was a spread betting of sort with binary options, hit or miss type ones and so on. The house was providing the other side kinda of like Vegas. You can specify how much you want to wager on each transaction and they give you a paypout. While not ideal, I made some good money from them and got paid as well. They are fairly big company now. I know plenty of people overseas that still use them. Counterparty risk is a risk, but it would be a risk we would have to take if we wanted to trade. If they ever open it back up for US clients. Maybe some kinda of exhange would work if they had computer systems that sort of have a balance book of traders and match the traders to the trades, in essence we would all be trading with each other outside said exhanges based on the actual products, wishful thinking I know. But I am sure someone would think outside the box on this if it ever came down to it. One good thing is Barney Frank is trying to bring back online gaming along with Ron Paul, and if that happens then the door will open back up for some things.
I can only speak for currencies right now since thats what I trade now, but when the NFA made the rules this summer about not hedging and first in first out, FXCM moved their clients in the US to the UK servers and had them trade out of the UK so they could get around the rules, not sure if that would happen if a transaction tax happens. I dont use hedging or care about the FIFO rules but I had fxcm as a small backup account so I had it moved to the UK and I had traded spot currency not spreads or CFD'S since they are not allowed for US, but no stamp tax was takin out. So i am using it as a test to see what happens with this if it goes the way of the tax.
