Whichever country you’re from, there would be a set of taxation regulations that you’ll be obliged to pay. I hardly think a broker keeps the taxes.
I am in the UK and trade via financial spreadbetting. It is completely tax-free.
Yes @Falstaff , hehe, before worrying about paying tax on winnings you actually have to be in profit consistently! A bit of research seems to confirm @tommor 's response for the UK, but not completely: the exception being that there is a different tax status for those who are not otherwise employed, in other words those who have become pro at spreadbetting. See this info, confirmed here and by more sources. :-/ I am no accountant nor HMRC employee, it’s just what I found FWIW. And should one decide to wing it anyway don’t call your job description “trader”.
There is no tax payable on spreadbetting in the UK whether or not its your only income, and regardless of the size of profits or of other income, and whether or not you have a “pro” account from the SB firm.
I trust you are reliably informed and consider myself corrected. Thank you for your input
I guess you should ask your CPA about it.
I don’t think so! But, to be sure you could maybe checkout with your broker or some channels on social media where such topics are discussed.
You would need to register with HMRC and pay capital gains tax if your earnings are over the threshold.
Check your own country’s rules but they should lay it all out easy enough. Failing that, seek professional advice to be sure.
You will have to pay the taxes.
Of course everything depends on the country where you’re a resident. If it’s UK then you should stay calm forex trading is tax free in the UK. However this rules doesn’t spread on other countries and there may be some taxes on various kinds of trading activity. So speaking about forex options and future traders, for tax purposes, forex options and future contracts are considered IRC Section 1256 contracts which are subject to a 60/40 tax consideration. In other words 60% of gains or losses are counted as long-term capital gains or losses, and teh remaining 40% is counted as a short-term. Sounds approximately like that.
Forex trading using CFD’s is taxable in the UK: forex trading using spreadbetting is not.
I am dying at how many times you have said this in this thread
It all depends on the country you’re in.
Yes, happily, if you’re a UK-based forex trader you can simply avoid tax on your profits by accessing the markets via spreadbetting, rather than via CFD’s.
I have been spreadbetting forex, shares, and indices since 2003 and have never even been required to lodge a tax return.
Taxes will be different based on the assets you trade and the country in which you live.
@TTH, I think there’s a provision in the law about professional spread betting but the important thing is that I’ve never ever heard of anybody paying taxes on their (spread) betting.
Hey @tommor do you know anything about taxes ?
Not just taxes.
Aren’t the spreads awful with spread betting firms though?