1/4% Tax on all stock trades pushed in NY Times today

Discussion in 'Taxes and Accounting' started by seasideheights, Jan 13, 2009.

  1. TraDaToR

    TraDaToR

    Of course, but well, I'm here to make a living.

    As an other poster said, their spread is the size of the grand canyon. Nobody can make money out of it unless they make errors. That's just my opinion.
     
    #341     Jan 16, 2009
  2. zzt

    zzt

    no thats incorrect. some cfd providers ( only one i can think of ), quote you a spread to trade, so you have to take liquidity. however, I have traded cfd's through specialist cfd brokers, and through large investment banks, and seen full market depth, and traded stat models which provide liquidity. As long as your strategy isn't super sensitive to funding costs, its no different to trading stocks. In fact you normaly look at, and trade using the same screen as the cash market. It's just a post trade allocation thing.....the broker trades the stock with the market, and you trade the swap with the broker
     
    #342     Jan 16, 2009
  3. TraDaToR

    TraDaToR

    OK, thanks for the info.
     
    #343     Jan 16, 2009
  4. zzt

    zzt

    In fact, about 3 yrs back i was trading US stocks on swap. You can definately trade exactly the same way as you would the cash market
     
    #344     Jan 16, 2009
  5. Looked around, it seems that US residents are not allowed to trade much outside of the US using foreign brokers..

    US residents

    "Please note that due to regulatory restrictions only Forex Spot, Forex OTC options, Managed FX funds, Spot Gold and Silver can currently be offered to US residents."

    As you may know, the tax was included in September's TARP , and let's hope that the industry can push it out again next time...

    http://www.govtrack.us/congress/billtext.xpd?bill=h110-7125

    "Subchapter c. tax on securities transactions.’
    Effective Date- The amendments made by this section shall apply to transactions occurring on or after January 1, 2009."
     
    #345     Jan 16, 2009
  6. Well I'm sure glad this never made it into the final draft of the TARP. If it had and the tax were effective January 1, 2009 I would be broke already:)

    I still say that this will never make it into law as it would have devasting consequences - some of which may not be known at this time...

    -Guru
     
    #346     Jan 16, 2009
  7. #348     Jan 17, 2009
  8. Thanks for posting these... I have a feeling it's only a matter of time before this gets brought up in congress again but hopefully we can shoot it down once and for all. What the hell is this country coming to?

    To bad we can't ask Obama what his stance is on the tax, lol. I believe Lawrence Summers is now against this tax so thats in our favor I guess (will anyone listen to him)? What about Geitner (assuming he gets the job) anyone know his position on the transaction tax?

    God help us,

    -Guru
     
    #349     Jan 17, 2009
  9. Aren't hedge funds the biggest speculators? No more hedge funds if this tax went through. You could not argue that hedge funds should be exempt since they are the biggest speculators.

    No more hedge funds - yea I definitely see this tax being passed.
     
    #350     Jan 17, 2009