# Trading shares using Thinkorswim Platform and tax implications from possible gains



## gargles (29 May 2014)

Hi all,

I am looking to begin trading US equities using the Thinkorswim (TOS) platform.

Does anyone have experience of using this platform and what are the tax implications for losses/gains made on these transactions in Ireland?

Thanks, 

Gargles


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## TheHound (29 May 2014)

I can't comment on the software specifically but I do know that TD are a solid company and don't put anything half baked out. I worked with TD Waterhouse (same company, basically) on a few things a couple of years ago and the had really high standards.

I don't know about the tax affairs when it comes to options trading in Ireland but if it does turn out to be a dead end, you might want to look into spread betting or CFD trading. Essentially the same thing but I know for a fact spread betting is tax free.


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## Jim2007 (29 May 2014)

TheHound said:


> I don't know about the tax affairs when it comes to options trading in Ireland but if it does turn out to be a dead end, you might want to look into spread betting or CFD trading. Essentially the same thing but I know for a fact spread betting is tax free.



CFDs are most not the same as trading equities!


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## parsimonious (13 Aug 2014)

Cap gains is 33% on the gain of shares sold regardless of share location. The first 1270 of cg tax is exempted. If you set up a joint a/c with somebody else then the exemption doubles (if unused). Eg a spouse.

Some govts place a small fee on the purchase - "stamp duty". If you buy and sell regularly this small fee massively impacts profit.

Lastly cfds do not incur stamp duty but are subject to cap gains - treated exact same as shares. Spread betting incurs no tax whatsoever (maybe stamp duty).  You need to be almost a professional level trader to make money in these. Get 1 trade badly wrong and unless very experienced you will likely lose  everything.

Options and warrants - i dont think revenue have outlined their cap gains tax view on these. You are not buying the share but the obligation to buy / sell the share in future. If cap gains exempt they would be very attractive as you can only lose the value of the option.


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## parsimonious (13 Aug 2014)

Cap gains is 33% on the gain of shares sold regardless of share location. The first 1270 of cg tax is exempted. If you set up a joint a/c with somebody else then the exemption doubles (if unused). Eg a spouse.

Some govts place a small fee on the purchase - "stamp duty". If you buy and sell regularly this small fee massively impacts profit.

Lastly cfds do not incur stamp duty but are subject to cap gains - treated exact same as shares. Spread betting incurs no tax whatsoever (maybe stamp duty).  You need to be almost a professional level trader to make money in these. Get 1 trade badly wrong and unless very experienced you will likely lose  everything.


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## noproblem (13 Aug 2014)

If I wanted to buy Irish Bank shares tomorrow, or any shares, what's the easiest and cheapest way for me to do that? Let's say I want to buy €15k, or more worth of Bank Of Ireland shares, how do I go about it, the cheapest way, safest way, easiest way and, how would I sell them if I made a good gain? I have the money, can put my own and wife's name as the purchasers for cg purposes, etc. Thanks anyone.


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## mandelbrot (13 Aug 2014)

parsimonious said:


> Cap gains is 33% on the gain of shares sold regardless of share location. The first 1270 of cg tax is exempted. If you set up a joint a/c with somebody else then the exemption doubles



It's not 1,270 of tax, it's an allowance for the first 1,270 of Gains. (So it's worth about €409 in tax).


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## dub_nerd (13 Aug 2014)

noproblem said:


> If I wanted to buy Irish Bank shares tomorrow, what's the easiest and cheapest way for me to do that?



I can't answer the question, but the next best thing might be to get your money in cash and set fire to it.


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## noproblem (13 Aug 2014)

Dub nerd,
If you cannot answer the question, no need to advertise your stupidity. Supplying answers to questions not asked is just stupid.


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## dub_nerd (13 Aug 2014)

One person's stupidity is another's friendly advice. You're welcome.


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## noproblem (13 Aug 2014)

dub_nerd said:


> One person's stupidity is another's friendly advice. You're welcome.



Chickens in the 17th century can be traced to a tiny village in wain toi, this is a little known fact in the world today. However, it's very important that this knowledge is never lost.


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## parsimonious (14 Aug 2014)

mandelbrot said:


> It's not 1,270 of tax, it's an allowance for the first 1,270 of Gains. (So it's worth about €409 in tax).



yep im wrong and has huge implications. 1270 is deducted against gain - then apply 33% tax.


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## parsimonious (14 Aug 2014)

how do I go about it, the cheapest way,
Cheapest is buy the bnk of ire shares thru a discount broker off bnk of ire listing in US (no stamp duty). but then you are exposed to $ & € currency risk.

 safest way, 
Buy the shares thru an irish full service broker, where ur name is on the shares. Therefore if broker goes bust you have the share certs. Bloody expensive.

easiest way 
An online discount broker in us or uk. However normal bureaucracy to set up a bank ac can take weeks
OR
buy thru your bank - most do it and quick and easy.
but massively expensive

and, how would I sell them if I made a good gain?
Thru the broker you bought from in the first place.

 I have the money, can put my own and wife's name as the purchasers for cg purposes, etc. Thanks anyone.[/QUOTE]
yes good idea - saves tax.

Btw bank of ireland is a highly speculative purchase. To buy shares in such, you would need to accept a strong possibility of losing a substantial part of that investment.


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## noproblem (15 Aug 2014)

Thank you very much Parsimonious for the advice, appreciated.  If you're not in, you can't win. 1. Gamble? Yes. 2. High chance of losing? Who knows. 3. Will the bank go under? No. 4. Any advice from the best financial advisors on it? Yes, plenty, but no answer either way, like myself they haven't a clue ?? That's good enough for me. I'll be back in a few months and show what a fool I've been, or !!!!!!!!


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