This 1/4 thing really blows but the sad reality is that most traders are not even profitable so it will only apply to the rare trader who is actually making money consistently. In other words, it won't apply to most traders
"Mutual firms and hedge funds have a huge advantage that you, the individual investor, do not. They are a business. As such, they pay taxes on their total net gains. Losing trades offset winning trades dollar for dollar. Their investors also pay taxes on their net returns (not on each winning trade). This is why they can get away with this sort of active trading. Their tax bite is much, much smaller." http://www.washingtonpost.com/busin...358bde-1105-11e4-98ee-daea85133bc9_story.html Makes me wonder if you might be able to neutralize this problem if you become a business instead of a retail trader.
Interesting article but it won't help you with this tax unless you become one of the exempt classes. Nothing final but it would appear market makers and some institutions will lobby their way to exemption. For the rest of us, pay when we buy and pay when we sell. Profit or loss is immaterial.
After thinking about this 1/4% tax controversy my guess is that it will happen and it will eventually be worldwide. Half of Europe is set to adopt the tax in 2016. I'm surprised that I actually have mixed feelings about it. I read a bit more and one of the stated purposes is to stop people from wasting their lives speculating so they will be more productive and benefit society. A lot of the smartest people in the world get sucked into speculation when they could be working on more significant and fulfilling projects. Speaking for myself I am willing to admit that the pursuit of speculation in stocks, options, futures and Forex has cost me some of the best years of my life - years I will never get back. I'm an inventor by nature and have over 50 inventions that I have not filed one patent for because I've been so busy trading. I even bought a Roland MDX-40 milling machine 10 years ago to prototype inventions. It's been sitting 5 feet from my computer for over 10 years and all I have ever done is turn it on - because I've been so absorbed with trading. The tax is a bummer on one hand but could be a blessing for many would-be traders. My main regret is that if does happen I wish it would have happened years ago and saved me from going down the rabbit hole. That all said, even if they do implement the tax there will probably still be ways to trade profitably. It will just be even harder than it already is.
This is typical thinking: because you have wasted your life trading, it must be so for others as well: new rules, regulation and taxes. When we hear "to benefit society", we all know trouble is just around the corner.
Oh....there I was thinking it was about the European Union attempting to neutralize one of the last existing threats to the United States Of Europe, democracy, the will and wishes of the people appear to have been thoroughly dealt with and neutralized but those pesky market forces still insist on pointing out that the emperor has no clothes, but hey I was wrong all along, its all about the EU not wanting me to waste my life running a business investing and trading in other businesses, oh I hope they are worried about our creative sides and offer free pottery and painting courses to traders, who clearly need guidance from the state.
I never said I condone the tax or the 'stated benefits' are their real goals. (Highly doubtful.) I'm just looking at it from the perspective of someone who might be screwed by it and how I might personally deal with the situation and turn it to my advantage.