Not that I would ever want this bill to be passed but if it does, it would certainly seperate the "good" prop firms from the "bad" ones and would force the bad ones out of business - rightfully so. I'm sure that owners at "those" firms (and we all know who they are) are sh*ting themselves right now scrambling to finally stand by their promise of training and coaching. Also, good traders should not be affected by this tax - since we are efficient traders - it certainly does not help our cost-basis but if it passes then the only ones that won't be as badly affected would be the good traders. LMAO!
T-bone OR better bone head your post may be the most moronic post ever. It would cost everyone money and put every prop firm out of business. The firm im with has a ton of VERY profitable traders and they are all active. This tax will take away all volume and make trading next to impossible. Yes there will be a few traders who can make but the majority and their volume will disappear along with the good old USA.
Seriously, how can you say something like that? Let's say you only make two trades a day, AVERAGING 0.2% per trade. Ignoring compounding, you will double your money in a year. Pretty good trading if you ask me. With the trans tax, you would be down on average .3% per trade and would go broke in no time.
it is obvious that you don't how to read or bother to read. a transaction tax of .001of the value of the transaction will bankrupt a trader who trades 4x his capital daily and break even from the market. this will take place within six to 12 months period obviously a prop trader with 10X leverage will be gone sooner.. the fact that u are clueless suggests you should be in another profession .
the public trader would be out. of busiiness.are you hoping as a prop trader (t-bone etc.)_to be exempt? there are plenty of public traders who based on t bon'es comment trade more than him.
To take it further... Let's say you were a supernatural trader, averaging .6% per trade, trading 6 times a day. Ignoring componding you would make 900% per year. Including compounding you would own the earth in no time. With this tax you would pay 83% of your profits, on top of what you already pay. That's not being affected, T-Bone?
The way I see it and I would love to be corrected, is on the futures side with the ES trading ~680 =$34,000 value per contract. So I'd be looking at .0025 * $34,000 per side add to my costs, or $85 per side. Are you out of your Effin mind that it wouldn't effect the typical trader?! Tell me it works some other mysterious way please.