Hi I don’t really want to turn this into a political debate. But Sanders (along with a few EU govs) are musing over a financial transaction tax. But does anyone know what that means in terms of costs to us? They just say 0.005% of tax on a transaction for derivatives. So is that of the value of the contract? Take oil for example it’s at $58.00 x contract value of $10,000 per contract = 580,000. 0.005% of that works out as $29 per trade in commission! Bonds would be a fair bit more. Basically finishes any sort of short term trading. But then again is it just 0.005% rise in exchange fees I.e a few more cents? Someone must know as it’s basically a make or break for trading.
%% Yes; most likely means NOTHING @ all to US, because Vermont is NOT really like most of USa @ all. Good question...…………………………………………………………………………………………………………………………..
Bernie does not care about your profits. Your mere intention to make profits for yourself is taxed. Do you pay right now $29 in commission for trading 1 contract? What is the confusion? But the irony is only compulsive gamblers are going to make money for the govt. Smart traders start trading less and it will be translated into less govt revenues. Bernie wants the govt to be a casino house profiting off compulsive gambling. But even casinos have a warning against gambling problems.
Could you ever imagine that a strong headed Marxist like Bernie would run for the US presidential office? You would have said "Never going to happen" some 20 years ago.
I tend to agree with gkishot. Never say never. Bernie pretty much neck and neck with Biden who is practically senile. Wisdom suggests Trump could beat either of them but it’s Trump. Who knows what he could do to sway the vote for or against him day to day let alone in a year.
Never happen. Want to watch wealthy citizens go to other countries and renounce citizenship to USA. Congress never support it.
That is a very strong opinion that such a small transaction tax will bring about the demise of trading. Not too long ago, online commissions were $20-$30 per 100 shares. Before computers and internet, commission for 100 shares used to cost several hundred dollars and commission for options were equal if not more. You also had to call a broker to place your trade. Yet many retails still traded frequently and many retails still made money trading options. Not saying I support the tax but if he gets elected someone has to pay for all the goodies. Definitely not the poor.
Yeah I was actually googling to try and find out what commission rates were back in 70’s and 80’s to see if they compared to $30+ for a 1 lot in futures (I’m a futures guy so wouldn’t even know what the equivalent is in stocks). I guess they have been that expensive before. But even so, technology very different now. I can’t believe the guys in the pits were scalping with $30 a round turn fees?