I was wondering, do Forex Traders have to pay any taxes? Of course people can loose but they also can make lots of money given the right time. So i was wondering, if i made 1 million dollars in my Brokerage account would that be tax free? And lastly, could it be possible to deposit money like 100,000 from lets say the US and then withdraw 1 million in a swiss bank? I never heard people discuss such things and they somehow appear to be possible even though they sound pretty nefarious!
PS I am only here to learn. Most probably my question shall be regarded as stupid but like the quote if you ask a question it makes you look stupid for 5 minutes - but if you don’t ask - you stay stupid for a lifetime.
This actually made me smile. Depending on where you’re based, you will most probably have to pay taxes on profits. There are certain country specific thresholds under which the gains might be tax free. You don’t hear people talk about the things you ask because making consistent profits so that you actually have what to pay taxes on is very difficult. And people (or more probable companies) dealing in $100k + don’t hang around babypips.
Tax is charged on the profits of a trade. The person liable to pay the tax is the person who is entitled to the profits. It doesn’t matter whose name the account is in. It will still be you who his entitled to the profits, and liable to the tax.
Totally Agree with you, the post made me smile as well. small comment on: (And people (or more probable companies) dealing in $100k + don’t hang around babypips). i dont know who is who in baby pips, but i can assure you there are people here trading 100K plus accounts. 100K is really not that much!! I understand babypips is for people who want to make minimum pips using small accounts, and that most people here are beginners in FX, but there are other things about the site that is attractive for newbies in FX (not necessarily newbies in stock market investing)
Not sure about $1 million+ thought…anyone here want to raise their hand??
In the UK HMRC will tell you that FX falls under Capital Gains Tax. However, I have read articles where individuals successfully argued that this is unenforceable as HMRC do not allow FX traders to offset their losses (probably because they realise there are more losers than winners in FX)
My broker does not inform HMRC of my profits/losses, so the onus to do or not to do this is on the individual
LOL i am in Cyprus for crying out loud! (people are still avoiding taxes in every day life) :60: If my broker doesn’t charge me automatically somehow, i simply shut my mouth about it! :27: Now are you allowed though to deposit from one place and withdraw to another place (tax haven) with two accounts? Yeah that’s called smuggling…
Funny thing is, i thought of this idea after watching The Wolf of Wall Street
Funny but curious!
[QUOTE=“Gchar;710354”]LOL i am in Cyprus for crying out loud! (people are still avoiding taxes in every day life) :60: If my broker doesn’t charge me automatically somehow, i simply shut my mouth about it! :27: Now are you allowed though to deposit from one place and withdraw to another place (tax haven) with two accounts? Yeah that’s called smuggling… Funny thing is, i thought of this idea after watching The Wolf of Wall Street Funny but curious![/QUOTE]
Hey, read something interesting about Cyprus today funny that.
Well, to sum it up, yes, Forex traders have to pay taxes just like any other business. You only pay taxes on profits, though. Losses can be written off. Second question, No. Most broker wont allow you to withdraw your money into a different account from where it came from, that is money laundering and it is illegal.
I am not sure how it works elsewhere in the world, but lately we have been having the U.S. government sticking their noses further and further into it’s citizens’ business. It used to be if you had an account outside the U.S., it was “safe” from being taxes. Lately though, even that is not happening, because the government figures if one of their citizens made some money, the government wants their cut, and have taken to going after accounts held by U.S. citizens, even in other countries. They weren’t making enough raping us with the taxes they already overcharge here, they had to “legally” steal more from us.
So, if you are a citizen, and trading in the U.S., yes you have to pay taxes.
no i am not a US citizen while i want to become one later on and i plan on going there for my residency after medical school. Hmmmm and what is their “cut”? Might as well ask them to cover a percentage of my losses too so i can loosen up my S/L! Only foul language truly defines their activities.
