Do you plan to offer any way of avoiding stamp on FTSE100 constituents?
I’ve seen a couple of other threads on Stamp Duty, but they always seem to get derailed onto other subjects, like leverage for instance, or focus on asset type.
For avoidance of doubt, this is not about margin, leverage, asset type.
Put simply, 0.5% of deal size is an intolerable drag on profit for anyone with a holding period of a couple of weeks and a large diversified portfolio (holding the entire universe of FTSE100 for instance). If you compare this with existing broker spreads/commissions on CFDs (solely for the purpose of stamp exemption), the 0.5% will dominate.
If your holding period is 6 months and/or you aren’t holding a diversified portfolio, then the stamp problem makes this a non-starter (i.e. cheaper options out there already).
In short, stamp is a killer. If the govmt imposed it on all delta1 derivatives on LSE main market underliers, it would literally kill the market. Which is why I think they don’t do it.
Stamp is as good as a (huge) commission from a broker.