I don’t think any brokers would take any taxes.
Your taxes are your business, and not theirs, especially if their clients are foreign, and different tax rules apply.
Why would a broker take on the extra burden of this?
I think your brokers are scamming you.
Does babypips have a thread of white-listed brokers?
Would that be a good idea?
There is a precedent for companies deducting and paying taxes for clients, at least in the UK. Here this is standard practice if you have capital in an interest-paying savings account and you are liable for Income Tax on the basis of your combined salary and interest payments. The firm make the deductions at the end of each tax year and send you documentary evidence.
In addition, your employer does the same thing with your salary - Income Tax is deducted at source on a monthly basis.
Tax deduction at source has been standard practice here for many years, but it does not cover Capital Gains Tax.
So a broker would never try to collect taxes for capital gains?
I had no problem withdrawing some small amounts but when I tried withdrawing everything in my account they said that I needed to pay my taxes on the profits before the withdrawal can be approved
Then I tried to withdraw only my principal amount since it’s not taxable but they will not allow me to withdraw any amount now unless I pay my taxes and complete the entire withdrawal… he said because I started a withdrawal requesting that I take all of my funds out that I need to now pay my taxes and complete the withdrawal…
So they won’t allow me to even load any more funds into my account until I complete this withdrawal and pay my taxes… they said I would get some kind of tax certificate after…
We’re not talking about a UK broker so I can’t advise whether this broker located elsewhere ever would deduct CGT from profits. But I just say its possible they could be required by the tax authorities to do this - it depends on the tax authorities.
It is clear, they want to make you their cow cash. You need some calculation here, if you could leave it to them,it unfortunate brokers are doing this.
No, there is no rule that says traders should pay states taxes before withdrawing funds from the Forex market. If he is asking for taxes before withdrawing, it is likely a scam.
I have been through quite a few brokers but none of them ask for taxes when withdraw so that likely a scam to keep you from withdrawing your money. Almost all brokers are registered in tax heaven so they pay low to no taxes to begin with.
Tbh personally, I’ve never faced such a deal. I always pay taxes after withdrawal, so I guess your broker knows nothing about it. Actually, I’ve never heard of this broker. How have you found him? I’d never thought it could be possible.
SCAM, people they call and say you are win a price of whatever games, programs…and they need you to send them small amount of fee money so they can send you huge amount of win price
IF your account got a lot money ! get yourself a Attorney. save the statements, video the screen account.
there is always a weird thing in this world, maybe some country they have weird tax program