Tobin Tax Effect on Forex
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Thread: Tobin Tax Effect on Forex

  1. #1
    I have been studying a lot recently about the EU's proposed Tobin Tax on all transactions. This could kill term trading and hamper the FX market.


    The taxation essentially increases the more often you trade. 1 calculation I read on the wikipedia was that to get a trader placing one trade a day for a year, the tax could be as large as 52%.

    Unless the entire world FX market implements the taxation, it seems this is only going to twist europe, because speculators like you and me would only move to a different set of currency or a different market altogether.

    I'm curious to hear what could you guys do if
    A. The EU implements a Tobin Tax
    and or
    B. The world FX market implements a Tobin Tax.

    I think I'd change to whatever the most liquid market I could find that didn't have the taxation. The US futures market.

    Also, although I live in Germany, I wonder when my broker is from the EU I would not have the pay the tax. Or maybe this is the opportunity for me to proceed to Switzerland?

    And that is how they expect to win back investor confidence? This is going to be the death of these.

  2. #2
    Quote Originally Posted by ;
    You've got to file a tax return every month.
    I Think the Broker does this for you. . .maybe concerning spread...

    0,01 two manners

    Anybody has an idea how much per lot?

    Hey those politicians already convinced that people, retail Traders make fortunes clicking a mouse. . .so we ought to be penalized...

  3. #3
    Quote Originally Posted by ;
    You have to file a tax return every month.
    If that's the case they are insane. Nobody is ever gonna do that.

  4. #4
    Quote Originally Posted by ;
    If that's the case they're mad. Nobody is ever gonna do that.
    They said that in one of the documents. Believe me you don't want to select the fiscal government to get a ride.

  5. #5
    Quote Originally Posted by ;
    [font=Verdana]First of all politicans are stupid and clever at the same moment. They argue that high frequency trading will be not longer possible that the volatility will fall. Banks can't be bound by the house rule. There will be some retail traders who need to leave the market but it will not have an impact on the volatility.

    Back to the topic: All these guys are traders that understand the market micro structure. They understand exactly (like me and everybody else should do that trades) what the distinction is between spot trading and derivatives.

    should they specify spot Foreign Exchange as derivative trading since it's a third-tier retail market, it means that they will need to taxation exchange offices around the street because those are grade 3 liquidity providers also.

    I don't think that they will employ such a definition. I mean there are lots of idiots in these 11 nations who support the FTT, but idiots wake up when the government taxes into their pockets so that I doubt that they will risk that much.

    Even so, the best call for dodging the tax would be a London-registered company a broker from outside the 11 countries and that should prove only enough in order to depart the Communists on themselves to taxation each others' asses.

  6. #6
    Quote Originally Posted by ;
    They mentioned that in one of the documents. Believe me you do not want to take the fiscal government for a ride.
    lol. Every german with trading earnings if he didnt he's now sure to do all his trading. The more they try to squeeze taxes from people the less they will get.

  7. #7
    Quote Originally Posted by ;
    lol. Each german with trading earnings if he he is now convinced to perform all his trading. The more they try to squeeze out taxes out of people the less they'll get.
    Of course, in its current form - that the taxation is more or less a'case-closed'.

    I was really fearful of the previous form which involved pushing the taxation on all European nations, which would have been an issue!

    Right now, in it's current form with 11 participants - they may do whatever they need.

  8. #8
    That which we do are not any currency transactions according to the eu's definition. There's a high probability that the retail trading is going to be classified as derivative trading. I'm not saying it will happen for sure. I only need to frighten you.


    I agree
    I´t´s hard to imagine they'd be quite so generous with forex, together with the popularity and higher volume it's....
    After allthey could twist and twist the legislation, which they themselves wrote in the start.
    Recall it´s popular. . .it just brings votes...

  9. #9

  10. #10
    Quote Originally Posted by ;
    Anyone from Italy here? Does the tax affect forex trading? if so. . .how are things there?

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