Anybody from internationally can open a foreign exchange account and begin buying and selling foreign exchange, however as a dealer based mostly within the UK myself, I can communicate from expertise in saying that us Brits have it straightforward with regards to foreign currency trading. Why is that this? Effectively there are two predominant causes, as I am about to elucidate.
The primary motive is as a result of merchants based mostly within the UK can commerce each the opening London session and the opening New York session throughout the day. These are each worthwhile occasions to commerce the foreign exchange markets they usually each happen throughout handy occasions. For US-based merchants, for instance, in the event that they wish to commerce the London session in addition to the US session, then they should stand up extraordinarily early, in the course of the night time actually, to commerce the London session.
This can be a disgrace as a result of the London session is in my view one of the best time of the day to commerce the markets. When you’re buying and selling the shorter time frames then the hours between eight.00 and 12.00 (UK time) could be extraordinarily worthwhile. You do not have to cope with any large financial information releases popping out of the US and also you solely want to concentrate to the occasional UK or European information releases. This implies you can focus totally on technical evaluation with none distractions.
The opposite predominant motive why UK merchants have a bonus over merchants from most different international locations is as a result of they’ve the choice to commerce fully tax-free. In different phrases any income they make are fully freed from tax, even when foreign currency trading is their full-time occupation. It is because below present tax legal guidelines UK merchants can commerce foreign exchange (in addition to many different monetary devices) by way of a spreadbetting account.
This works in a lot the identical approach as a standard foreign exchange dealer besides that it is thought-about to be betting, which is why it’s not presently thought to be taxable revenue. You merely enter a stake per level after which take an extended or quick place on a specific forex pair. The extra the forex pair strikes in your favour, the extra money you make (and vice versa if it strikes in opposition to you).
So to sum up, if you happen to’re dwelling within the UK you’ve a serious benefit as a result of in case you are worthwhile then you possibly can preserve 100% of any beneficial properties you make if you happen to commerce by way of a spreadbetting firm. Plus after all you even have the comfort of having the ability to commerce probably the most worthwhile hours of the day. So to reply the unique query posed, sure I do certainly suppose these of us who’re dwelling within the UK and being profitable from foreign currency trading are certainly very lucky for these very causes.