Hello I trade currencies with a very small amount of money on eToro for fun. Since starting last June I haven't made a profit, I just like pretending I'm warren buffet and earning £25 to then lose it the next day. I don't do it seriously, its just fun for me, but I got a bit worried about the government possibly trying to ruin my life by slapping me with tax fraud fines or something for undisclosed trading or whatever. I have literally no idea how tax or anything works in this country. The only tax related "education" I got at school was about paying income tax and stamp duty etc. which is just common knowledge anyway, I know nothing about stuff like this. Do I have to register as self employed and fill in tax returns and stuff? I don't work anymore, I left my job in august and went back to college, so now I'm a full time student living off my savings. I probably make like one or two trades a month on etoro, purely for fun. The same way I occasionally go to the bookies or a poker night.
Forex trading, tax and getting a mortgage in the UK
Hopefully this is ok to post here but I was wondering if there are any people here, particularly from the UK who have had sufficient success for forex to form the large part or all of their income and what were the implications for tax/NI. Finally, were there any issues getting a mortgage? I know if you are a successful sports trader you can provide all the Betfair statements you like showing consistent income but you would get laughed out the bank so I wondered if there same was true with forex.
Hello BEFire people, Looking how I now have a bit of time on my hands and some money I don't mind loosing on the short term, I would like to start dabbling into Forex trading. Lost of great resources exist for you to start with a demo account and learn how this type of market work but the question isn't here. As any investor know most of the money you make can be lost through the complex process of Belgian taxation. Which is why I am addressing you in the first place. After a bit of research, i found really conflicting legislation on the subject. On one side, the FSMA has banned the trading of CFD (contract for differences) and Forex instruments by Belgian brokers. (https://www.fsma.be/en/faq/fsma-regulation-governing-distribution-certain-derivative-financial-instruments-binary-options-0) Leaving little room for private investors to do anything. On the other, I didn't read anything about passing through an offshore broker. Diving deeper in the taxes aspect of it, I suspect this would be taxed as a "professional salary" due to the repetitive nature of the operation and would there account for for a complementary salary more than anything else. If it is the case, this would mean it would follow the following table: from 0 to 8 350 euros ..............................................25 % from 8 350 to 11 890 euros ....................................30 % from 11 890 to 19 810 euros ..................................40 % from 19 810 to 36 300 euros ..................................45 % over 36 300 euros ..........................................50 % Mind that these numbers date from 2015 and might not be up to date anymore. This would means that if you want to double your capital by trading Forex you would nearly have to triple it before taxes. Has anyone here ever dealt with Forex trading and could confirm my understanding on (1)the possibility to trade Forex through offshore broker and (2)the way Belgian taxes are computed for this type of trading is correct ?
I am a full-time foreign student (a tax resident) in Poland. I do not have a job, and the only source of my income is Forex trading, which is basically converting the currency (transferring from one of my accounts to another) within the same Polish bank. Presuming it is taxable income, how much of it need to be paid as tax and how would I go about paying it? I have read a bit about PIT-11 form which is usually provided by an employer, but in my case I'm likely considered to be "self-employed".
If I'm unemployed and I profit more than £12,500 a year (tax-free allowance) trading Forex, will I have to pay income tax on all profits above £12,500?
Also, when do I declare it as income? Does it count as income when my Forex account balance increases, or when I actually withdraw the funds into my bank account? So lets say that I gain £20,000 this year trading Forex, but this stays in my Forex account (I don't withdraw any money into my bank account). Will I have to declare it as income and pay taxes on it? Or is that only if I withdraw the profits into my bank account? (by the way, I am spread betting, therefore there is no stamp duty or capital gains tax).
When trading CFDs (Forex) as your main source of income, do you just pay income tax or do you have to also pay CGT?
When trading Forex CFDs as your second source of income, you will have to pay CGT. When trading CFDs as your main source of income, you will have to pay income tax. My question is: do you also have to pay CGT along with the income tax, or is it just income tax by itself?
Can I do Forex trading with my bank account? How is it taxed? And is it worth it?
I currently have Canadian and US bank accounts that let me convert money back and forth easily. The exchange rate between the two seems to fluctuate a fraction of a percent daily. I'm wondering if it's worth the time to continually flip money back and forth when the exchange rate is favorable on each side. Is this even legal to do without a proper Forex broker? Would my bank block me from doing this? How would this be taxed? I'm thinking if I just had a 10k emergency fund in cash, I could flip it back and forth occasionally to make some profit, and I might get a higher yield than putting it in a savings account with a 0.5-1% rate.
I just started trading forex a few months ago and went from $10k to $14k on Oanda. When do I have to pay taxes? Is it only when I withdraw the funds from Oanda or is it on realized P/L? Also, is this taxed as capitals gains?
Forex Trading UK- Tax free or not? Does it need to be with a UK broker? Does it need to be a spreadbet?
Hi All, I'm looking for advice. I have started making some money doing forex trading. I use IC markets as a broker. I am resident in the UK and forex trading is my second income. I haven't withdrawn anything from my trading account. I am really confused about the "forex is tax free" condition in the UK.... so a few questions and really grateful for some answers! 1: Do I need to be registered with a UK broker in order to fall under the "forex trading is tax free, as long as it's second income" or does IC markets work for me? 2: Does it need to be a spread bet account? only a handful of companies do this, and they give a leverage of 1:30. I need 1:500 as my trading account isn't the word's biggest, tens of thousands gbp. 3: Do I need to file some sort of tax return? I may have more questions as you lovely, learned people give me answers! Thank you
I am looking to get into the foreign exchange market where I trade different currencies as the value of different world currencies change day to day and am currently reading up on the subject before I start it. One thing I was worried about was taxes. How do I go about filing taxes for this? How much would I owe in taxes if I make a certain amount from this? I live in Georgia, USA just in case that matters on a state level. I don't wanna start this then get hit with a crazy amount of tax money owed next year.
Hey I’m just starting out trading on the Forex market, and I just wanted to know as a resident of the United States what are the steps or process you go about to file your taxes on the earning you made off of Forex?
Hey guys, I live in the UK and ive just joined my friends company on the forex market. He uses a bot to predict the market and it work extremely well. I’ve only invested £500 and been doing it for 2 days and already made 5% profit on my investment. I’m just curious as to what I would have to pay in tax. I have a full time job and pay tax on that already at 20% but I was told by my friend that they don’t take that into account and I won’t have to pay tax until I earn over £10,000. This seems too good to be true to me, they said it came under capital gains tax and that what they were doing was not spread betting as they are using a bot. Can anyone shed any light on this for me? I’m not very savvy with this as I stated I’ve only been doing this for 2 days and I literally do nothing, all I’ve done is put £500 in and it’s making me profit. Thanks in advance
An investor treats Forex trading as his or her main source of income, or their main source of income somehow derives from trading activity, in which case, they would be liable to taxation of profit on the basis of either income, capital gains or corporation tax. If you are trading options and futures on currencies, you are speculating by buying and selling contracts, which have variable market prices and specified expiration dates. In Internal Revenue Service parlance, these are 1256(g) contracts, subject to a 60/40 split. The IRS taxes 60 percent of the gain as long-term, and 40 percent as short-term. So, on the whole, forex trading tax implications in the US will be the same as share trading taxes, and most other instruments. Whilst futures options can come with some interesting stipulations, the primary concern for all instruments is around ‘trader’ vs ‘investor’ status. Tax Preparation Keep A Record FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex trading involves significant risk of loss and is not suitable for all investors. Full Disclosure. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Forex transactions need to be separated into Section 988 reporting. Given the fact that the forex market is one of the fastest-growing financial markets around, it might eventually come under closer IRS regulation. In the meantime, traders continue to enjoy tax advantages by trading foreign currencies.
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