Registered: Jun 2011
05-11-12 01:27 AM
the big deal right now is the IRS confusion over the 60/40 split. I trade spot and took it for 2011 and so far so good. But Green, who I respect says in his view spot is not eligible for the favorable tax treatment.
No, I would not say futures are safer. If the broker goes bust there's no question you lose what's in your futures account, no questions asked.
Hard to say about forex, depends on how SIPC looks at it.
When you consider accrued interest I would say as far as cheaper, futures have an edge.
But like Jack said, there are many other advantages to spot, namely complete control over position size.
The reason for most failures is undercapitalisation, and if you are trading spot that will never happen to you. And for a small trader like me that makes it
SAFE AS MILK