> The majority of share traders are running a trading account...

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    > The majority of share traders are running a trading account not a capital account.

    I think you are very confused about the tax treatment of share investments. It doesn't matter what kind of brokerage account you have. There is no difference.

    If you trade shares, and you're not a professional trader (ie it is not registered as your main source of income), any gains or losses made by buying and selling are CAPITAL GAINS or CAPITAL LOSSES. Interest counts as income not capital.

    If you are a professional trader, i.e. it is registered as your main source of income, then these gains or losses can indeed be offset against other income. I don't think there are that many professional traders as a portion of the economy, so you wouldn't organise fiscal policy around this.

 
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