I've been reading a lot lately about the EU's proposed Tobin Tax on all financial transactions. This would effectively kill short term trading and seriously hamper the FX market.
http://en.wikipedia.org/wiki/Tobin_tax
The tax essentially increases the more frequently you trade. One calculation I read on the German wikipedia was that for a trader placing one trade a day for a year, the tax could be as high as 52%.
Unless the entire world FX market implements the tax, it seems this will only screw europe, because speculators like you and me would simply move to another set of currency or another market altogether.
I'm interested to hear what would 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 switch to whatever the most liquid market I could find that didn't have the tax. Maybe the US futures market.
Also, although I live in Germany, I wonder if my broker is out of the EU I wouldn't have the pay the tax. Or maybe this is the opportunity for me to move to Switzerland?
And this is really how they expect to win back investor confidence? This will be the death of them, promise.
http://en.wikipedia.org/wiki/Tobin_tax
The tax essentially increases the more frequently you trade. One calculation I read on the German wikipedia was that for a trader placing one trade a day for a year, the tax could be as high as 52%.
Unless the entire world FX market implements the tax, it seems this will only screw europe, because speculators like you and me would simply move to another set of currency or another market altogether.
I'm interested to hear what would 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 switch to whatever the most liquid market I could find that didn't have the tax. Maybe the US futures market.
Also, although I live in Germany, I wonder if my broker is out of the EU I wouldn't have the pay the tax. Or maybe this is the opportunity for me to move to Switzerland?
And this is really how they expect to win back investor confidence? This will be the death of them, promise.