Sprotty
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Posts posted by Sprotty
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Hi
I want to hold a number of stocks and ETF's long term, many of these are on the NASDAQ.
If I buy the shares directly via the share dealing account, then there are large exchange rate fees (and I believe I will be paying tax on any gains).
So I'm looking at using spread bets to achieve this goal, from what I understand their is no tax, and the exchange rate issues seems to be just factored into the spread.What I would like to know, is there a down side to holding spread bet positions long term?
Your docs suggest there is interest due for holding long term positions, but it’s unclear how this works.
https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-shares-spread-bet-product-detailsAre these %'s per trade, per year, per day, per 3/6/9 month interval?
Do they get worked out automatically as I hold a position for longer or do I need to make some selection when creating a spread betting position?Thanks.
Holding long term positions using spread bets
in New Client Trading Questions
Posted
Thanks, I think I've got that, but just to be clear, given the formula in the link
Size for spread bets means size of bet
Size × closing price × LIBOR +/- 2.5% ÷ 365
So if I have a spread bet on say the FSTE 100, which had a value of 7500,
If my bet size was 10, and the LIBOR is 2%
If I keep that open past 10pm then my daily interest would be
10 * 7500 x (2 + 2.5) / 365 = £9.25 per day.
OK, got that I think, so what are the %'s listed in
https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-shares-spread-bet-product-details
Specifically these ones; which imply you expect some bets to be held for months, but given the daily interest that doesn't seem to be a good strategy?