Tax on earnings

Hello, maybe a stupid question as I am beginner, let’ s say I download a platform like metatrader and start to trade and earning money, do I have to pay tax on my earnings or the platform keep some fees from my earnings as tax or how that works?
Thank you

Whether you pay tax or not and how much you pay will depend on the type of market access and the laws of the country you are resident in. The type of platform is not a factor.

For example, in the UK -
trading forex by spreadbetting is tax-free
trading forex using CFD’s is taxed through Capital Gains Tax on the profits made (above a specified annual threshold)
the broker never collects the tax for you

Different countries have different tax laws, check yours.

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Thank you, I am resident in UK so on forex is tax free then.
Really helpfull, thank you

No - In the UK trading forex via spreadbetting is tax-free. But there is CGT on trading forex via CFD’s.

Agreed with @tommor - I’ve always heard that it is tax-free here in the UK. However probably wouldn’t hurt to consult a Financial Advisor if you’re unsure…

Spreadbetting in the UK is tax-free. Trading CFD’s in the UK is not tax-free.

I do love these questions ! :rofl:

Before you pay Tax - you actually have to make a profit ! :rofl: :rofl:

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If you are the UK resident, you will have to pay taxes on your profit. I’m not sure, but I think that you profit per month should exceed £1,000

The platform has nothing to do with the taxes you pay. You have to pay tax when the profits you make reach your bank account.

Spreadbetting forex in the UK is tax-free, no matter how much you win, regardless of other income, no matter what platform you use.

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My friend is an accountant and he said you do have to pay tax for Forex trading

How Does Day Trading Affect Taxes?

It depends upon the type of market you are trading and the laws of the country you are residing in. The type of platform or any broker never collects the tax for you

My mate is an accountant and he said you only pay tax if you earn over £12.3k a year

If you are trading with the right strategy, there is no problem with paying taxes.

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I don’t think forex is tax free anywhere. There are few traders who don’t prefer paying taxes on forex earnings (for reasons they know better), and believe they can get away with it. What they don’t know is that the IRS will eventually catch up with them and the tax avoidance fee will be much greater than the tax.

Forex trading is tax-free in the UK if done via spreadbetting.

It is best to contact your CPA or a bookkeeper who knows everything about this and can guide you.

Had a similar question, so I am happy that I could find the answer here! Long-term capital gains and qualified dividends are generally taxed at special capital gains tax rates of 0 percent, 15 percent, and 20 percent depending on your taxable income. Also, it is very important to report your investment income, because the IRS requires all investment income to be reported when your income tax return is filed. In case you have any additional questions, collaborating with the accounting company might be a great idea, as it gives you the opportunity to avoid any possible mistakes.

It all depends on the platform