TradeSmart Bank - Page 2
What trading platforms do institutional traders typically use?
Institutional traders typically rely on sophisticated trading platforms that can handle high volume trades and offer in-depth market analysis. Bloomberg Terminal is a popular choice due to its comprehensive financial analysis tools and real-time data. Eikon from Refinitiv is another platform favored for its global market coverage and advanced analytics. Direct Market Access platforms like Tradair and FlexTrade are also used because they enable traders to directly interact with the order book of an exchange. These platforms offer robustness and speed, which are crucial for institutional trading.
How is trading income taxed?
Trading income, whether from stocks, bonds, or other investments, is typically subject to taxation. The tax rate can vary depending on your income bracket and the type of trading done. Short-term trades are generally taxed at your regular income tax rate, while long-term trades, those held for over a year, are taxed at a lower rate, often around 15%. It's crucial to keep track of your trades for tax purposes. Remember, it's always a good idea to consult with a tax professional to ensure you're meeting all your obligations.