Which countries tax forex gains?
Are there any countries where forex earnings are tax free?
I believe that the Maldives don’t tax anything at all! But I don’t get this kind of issue with Forex, I mean it’s so lucrative, and if you’re profitable, Tax should be the least of your worries, and if you’re looking to squeeze that very last penny from Forex, isn’t that a sign of too much greed, which is not too good a thing to have when trading forex.
Almost all countries will tax you on forex earnings. If you’re in the UK and Ireland you can use spreadbetting which is tax-free and virtually the same product as forex for all intents and purposes. Otherwise just get a good accountant’s advice - I’m sure there’s lots of ways to make yourself more tax efficient.
Yes, but beware of spreadbetters, I’m sure there are safe honest ones out there, but watch you just don’t get ripped off left right and centre, however the same can be said about to Forex brokers.
I wasn’t asking because I want to avoid paying. I’m merely curious as to what percentage of your gains you’d have to pay and how it varies from country to country.
I also don’t understand how you can say tax should be the least of one’s worries. Taxes are a huge consideration. How else are you going to budget and plan? Every, and I mean ‘every’, expense needs to be considered. The last thing you want is to overspend then come tax time you’re unable to pay.
Do you know if any spreadbetting firms allow you to use MT4?
I must admit I have worded my post really poorly, but what you get around here is people that just want to avoid tax that is their prime motive and they don’t last long, but I see what you mean, yes Tax is important, you want to keep on the right side of the law, and you are absolutely right, but my angle was that if you can earn from forex you will be easily able to afford to pay the required tax on it.
FXCM possibly - can’t say for sure though. It looks like it might.
Smart Live Markets do as well though I can’t vouch for how good they are.
Thanks PipBandit. FXCMs spread seems a bit high (especially compared to OANDA) and Smart Live doesn’t list theres (suspicious). I’ll have to work out whether the slightly higher spread works out cheaper than paying tax (it probably does).
Don’t forget to factor in any slippage.
its tax free in Sing and Malaysia
FXCM spread betting is not available on MT4 you have to use their own platform.
Smart Live spreads are better than FXCM’s but not as good as Oanda’s.
Some examples, EU 1.5,AU 1.7,UC 2.4,GU 2.0.
I never had any slippage when using my SB provider. In fact they guaranteed that so long as the market was open that you’d be taken in and out of your trade at whatever your entry / TP / SL was. You could also get guaranteed stops if you wanted to hold over the weekend but were afraid of gapping though there was a charge for this - never looked into how much exactly though.