Sports’ trading seems to be a winner when it comes to Tax free income but it’s actually far more complicated than trading shares will ever be.
You see, when you open a trade with a financial bookmaker you know your worst case scenario upfront. You pay your spread (bookies fee/commission) have your stop loss in place and off you go. You have huge upside potential with little downside.
Of course you can still lose (downside) but that is part of the whole picture.
But when it comes to sports trading your odds off making it big seem to be so limited. If you use betfair, where the majority of liquidity is for trading you are limited by that factor before anything else. Compared to financial trading where there is a limitless pot of gold.
With sports trading you also have to be glued to your screen for hours upon hours unlike financial trading where you can just check once a day.
But the biggest killer is this; If you win at the sports bookies they limit your account or close it. If you win big on betfair they tax you! In fact you get taxed so heavily that it’s bordering criminal… If you have earned over £250,000 you pay a premium charge fee on your winnings of 60%! woooooow.
People do however make money trading on betfair and betting at the bookies, but for all the work involved and headaches it’s a wonder why more are not moving over to the financials?
Bonus bagging is never going to make you rich but it is a free £75/100+ in your bank account every week and that is tax free and the bookies actually ask you to come and take their offers.
Oh and if you can’t ever imagine making more than £250,000 in the long run… keep going and doing what you’re doing I suppose.
I have also looked at arbitrage trading but you need to be lightning quick, need a £1000 for each arb and that’s to make an average of 2% ROI