Trading UK stocks through IB?

trader3 · May 23, 2006

What are the IB commissions for trading UK stocks? It looks like they are 6 GBP per side for under 50,000 GBP worth. Is it possible to daytrade UK stocks through IB successfully or are the commissions too high? What are some of the UK stocks that are equivalent to the US tech stocks in volatility and volume?
Thanks

just21 · May 23, 2006

You have to pay 0.5% stamp tax to the government on every purchase. 200 flat trades and you are bust!

dont · May 23, 2006

Are there any institutions that are not required to pay the stamp duty.

For example Brokers?

trader3 · May 23, 2006

So then what is worth trading outside of the US markets besides ESTX50 and the DAX?

just21 · May 23, 2006

To avoid the stamp tax, hedge funds use contracts for differences.

dont · May 23, 2006

Why not use Single stock futures.

Also if they are using CFD's who are they trading with, ultimately the hedger pays the stamp duty?

just21 · May 23, 2006

Market makers are exempt.

thecalip · May 23, 2006

why people want to trade any stock other than stock listed in the US? I see the reason for futures and options, but as far as stocks go, US stocks is most liquid.

just21 · May 23, 2006

If the dollar declines by 25% you have to have picked a good stock just to break even.

thecalip · May 23, 2006

Quote from just21:

If the dollar declines by 25% you have to have picked a good stock just to break even.

I don't think it will affect you if you going to stay in the US. I think the decline of dollar is more or less a good thing. At least foreigner will buy from the US instead of the US buying foreigner products which lead to a even bigger budget deficits.