It’s the three rules of real estate, but how about forex trading? As a US citizen and resident, I see comments about regulations and taxes and wonder if and how much I may be hampered by geography. Plus it seems like a lot of the successful traders that post here regularly are non-US. Whaddayall think- is there hope for a newbie yank in this racket? 
I’m in the UK and have never used a US broker but I get a confused picture from US traders. The regulations seem tight enough so you shouldn’t find you’re signed up with a firm with an accommodation address and not trading account who just disappear with all the deposits when they hit a hundred grand. But some US traders say you need a huge account to trade forex. Plus you have to pay tax. Plus there are restrictions on how you can trade.
In the UK I can spreadbet forex at spreads of e.g. 1 pip on GBP/USD with a deposit of £100. I can scalp as tight and fast as I want (if I wanted to, which I don’t). Plus spreadbetting is legal here, its tightly regulated and tax-free.
It seems US governments like to talk about free markets but in practice they’re quite keen on protecting vested interests.
Best to trade forex in states with no income tax like Florida and Texas.
Hi,
I have never been tax-resident in the USA but have lived in seven legal jurisdictions during my career and paid taxes in five of them. I have to say that the UK is most likely the fairest of those in which I have paid taxes. By fairest, I mean they do not aggressively penalize wealth accumulation. Of course, you need to prepare your tax affairs like anywhere else, and I have a small UK Limited Company via which I bill my customers and from which I pay a small salary and some dividends which have favourable UK tax treatment.
I always say to people who worry about taxes to worry about earning income and profits before you worry about taxes. It would be extreme to change the country in which you live only on the basis of being worried about taxes unless you have understood all the tax laws applicable to you where you are right now and where you intended to be in future. In most western countries, those earning the lowest 10% pay no taxes, and those earning the top 1% probably don’t pay (personal income) taxes either, but they contribute to the economy in other ways. It’s the 80% in the middle that have to foot most of the tax bill, and that most likely includes you and me. If you have earned profits you will be able to pay taxes. If not, you will not have any to pay so it is a bit of a moot point.
Well, lucky me then I happen to live in Florida.
Oh jeez, nothing like that. I do think about Australia sometimes for other reasons than trading, but not in any serious way. I’m just wondering how much of a handicap living in the US might be.
Tonnes of my US friends trade to a variety of brokers and are very happy. They make a nice living too!
more than the location its about the regulation of the broker. is it regulated or non regulated. thats what i feel.