Forex tax question

  1. 983
    Posts

    If trading a forex account is tax payable on the account balance or only if I withdraw money?

    Thanks

  2. 4.3k
    Posts

    Dont worry, you wont make any money trading Forex so Tax is no issue ,

    You will only make losses attempting to trade FX over any Financial Year,

    Be sure and update this thread when your account crashes out :)

  3. 983
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    uh-huh. :)

    SO when I buck the trend and make a billion dollars, when am I liable to pay tax on it?

  4. 4.3k
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    You wont buck the trend and make a Billion, only george Soros did that because he knew all the people on the Other side of his short on the GBP,

    Its like playing Footy against a team that you know are going to tank a game so you bet heavy you will win,

    You cant stack the cards in FX, the gains are too small and the leveraged exposure is too big.

    In stocks if you buy with cash money and no leverage, then if your stock tanks for a few weeks you can just hold the trade until it rolls back up for you,

    In FX you cant carry a loss, you must stop out, and with the chop its impossible unless your trading with tiny trades at a time with a massive bank for drawdowns,

    You need to be able to absorb massive drawdowns and also have an algorithm to apply your micro trades , you simply cant do it without a computer backtested strategy,

    Its like trying to win 8/10 times vs Computer chess set on Pro level,

    Basically they will take your Money and your time,

  5. 983
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    Oh I plan to operate in 'demo' mode for quite a while before I commit. I just wanted my tax question answered really. :)

  6. 4.3k
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    FX income Can be viewed many ways by Tax depending on numerous factors , even the Tax man couldnt give to a straight answer on it,

    FX for demo is good fun to muck around with, I hope it works for you,

  7. 2
    Posts

    You will be taxed on capital gain (if positive, of course).

    1 like
  8. 12
    Posts

    Hi there. I think it`s depending on the broker`s conditions (Is the broker tax agent or not). For example, I`m trading with IC Markets US ( https://tradersunion.com/brokers/forex/view/ic_markets/ ) and they didn`t tax any profit.

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