Tax on Forex profits in the UK?
Posted by Ryanita
on
Saturday, May 17, 2014
, under
forex uk
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comments (0)
Dan
***
If you cannot be bothered to read this entire thread, please just read the paragraph below and comment on the limited information.
***
I've read too many discussion forums on this subject and following which I have called HMRC on this issue and they said any form of forex trading, regardless of whether you have a full time 9-5 job, is regarded as trading depending on the frequency and knowledge of the subject. They said it cannot be regarded as gambling as per spread forex trades are and is therefore liable to tax and that too, income tax not capital gains tax because it is regarded as "trading". Can someone in the UK who trades forex and has experiencing of dealing with HMRC please confirm their situation.
I have outlined my scenarios as follows:
Background to query
â¢I may casually on Sunday evenings, weekday evenings or occasionally during weekday lunch hours place some speculative forex positions with a currency broker to try and profit from a rise or fall in a particular currency e.g. GBP v Australian Dollar or US dollar. Most brokers will provide leverage to finance the position e.g. a £1m position will require me to put a deposit of 1% i.e. £10,000 as collateral. In addition to a profit or loss that materialises from the trade when it is closed, interest is either than earned or paid by me, depending on whether I buy the currency (going long) or sell the currency (going short). For the purpose of this example, letâs assume that the interest rate either way is £20 per day
â¢In terms of time spent dedicated to this âspeculative currency undertakingâ, it is difficult to quantify because I might place an automated limit order to buy or sell something which takes 2 minutes to do and then not look at again until I receive an email notification that the trade has executed and then place a limit order to close the trade with the target profit. Often, I may leave my iphone connected to the page that displays live information whether a transaction has been executed or not. As I have a day job, my time is devoted to that and not to currency trading. In the evenings, I may watch the prices whilst eating dinner / watching tv / playing with kids (but I am not glued to a trading screen)
â¢The volume of trading could be anything from £250,000 per leveraged trade to £1m per leveraged trade and positions could be opened and closed from 2 times per month to 20 times per month (I donât think the size of the trade should matter here because the broker is funding the majority of the position, and the frequency is no different to somebody buying and selling many times on the stock market in the month be it on margin trading or outright purchase)
Could you please advise how HMRC will view the following situations in relation to tax in respect of the above:
Scenario 1
â¢As an employee with a full time job and my primary job/income not related to the activity of forex at all, I regard this speculation as a means of personal gain or loss. I am not a professional forex trader. I am simply a person who reads the papers, financial news and makes an informed decision and may make or lose money on the trade. I would undertake the forex trade as an outright cash (spot) transaction with the broker who would finance it i.e. not a âspread tradeâ. This example is no different to someone who likes to undertake equity share trading as a frequent hobby. How is any tax treatment on profit/loss made here and is it regarded as income or capital gains? Is this regarded as gambling and therefore no taxes are paid on profits and no relief can be granted against losses?
Scenario 2
â¢As per situation 1, except this time the transaction is undertaken as a âspread tradeâ which is therefore regarded as gambling and therefore not subject to either income tax or CGT (again this is not my primary job), rather than as an outright cash (spot) purchase/sale by the broker. How is any tax and relief treatment on profit/loss made here and is it regarded as income or capital gains?
Scenario 3
â¢If I opened a forex account in the name of my wife and I undertake all forex trading on her behalf (under her name), and her full time job is as a dentist , how is any tax treatment on profit/loss made here and is it regarded as income or capital gains?
Scenario 4
â¢Because technically I have a religious issue with gambling, yet current laws permit favourable tax treatment towards spread betting and gambling i.e. it is not taxable âif it is not regarding as trading and your main jobâ, my preference would be to undertake such position NOT via a spread trade. However, at risk of facing tax liabilities if I went the ânon-spread betting routeâ, I donât favour that idea either. Is there any way in which speculative forex trading (cash) can be undertaken which offers similar advantages as spread-betting but not necessarily via that route?
Answer
HMRC have given you the advice you seek. That advice is spot on.
There are no special rules for forex trading (unless it is done by a company). The only question that needs asked is "are you trading": are you engaged in a trading activity? That is not a simple question to answer. In its simplest, a tourist could return from holiday and convert his dollars into pounds at a better rate. That tourist has made a gain, but that is not a trading activity. On the other hand there is a person who regularly buys and sells large quantities of foreign currency with the sole purpose of realising a gain. That person is trading. There is a raft of scenarios in between. Each will fall on its own facts.
From what you say, you are without doubt trading. You are doing this on a grand scale. You are organised, and you have a profit seeking motive. It does not matter how many jobs or trades you have. If what you do on the foreign exchange is a trade, then the profits will be taxable (and your losses will be relievable).
Tax is charged on the profits of a trade. The person liable to pay the tax is the person who is entitled to the profits. It doesn't matter whose name the account is in. It will still be you who his entitled to the profits, and liable to the tax.
A person who makes model boats and sells them at a Sunday market may be fulfilling a hobby, but is also trading. Again. although doing it for enjoyment, he is also doing it to make money. Similarly a professional golfer cannot claim that his earnings are not from a trade because golf is also his hobby.
There is no law that prevents gambling from being a trade. The law defines a trade as "every trade, manufacture, adventure or concern in the nature of trade." The courts decided that gambling did not fit that description. That makes perfect sense because if it were a trade every gambler would be able to set his losses against tax. There are more losses than winnings in the gambling world.
HMRC have given you the advice you seek. That advice is spot on.
There are no special rules for forex trading (unless it is done by a company). The only question that needs asked is "are you trading": are you engaged in a trading activity? That is not a simple question to answer. In its simplest, a tourist could return from holiday and convert his dollars into pounds at a better rate. That tourist has made a gain, but that is not a trading activity. On the other hand there is a person who regularly buys and sells large quantities of foreign currency with the sole purpose of realising a gain. That person is trading. There is a raft of scenarios in between. Each will fall on its own facts.
From what you say, you are without doubt trading. You are doing this on a grand scale. You are organised, and you have a profit seeking motive. It does not matter how many jobs or trades you have. If what you do on the foreign exchange is a trade, then the profits will be taxable (and your losses will be relievable).
Tax is charged on the profits of a trade. The person liable to pay the tax is the person who is entitled to the profits. It doesn't matter whose name the account is in. It will still be you who his entitled to the profits, and liable to the tax.
A person who makes model boats and sells them at a Sunday market may be fulfilling a hobby, but is also trading. Again. although doing it for enjoyment, he is also doing it to make money. Similarly a professional golfer cannot claim that his earnings are not from a trade because golf is also his hobby.
There is no law that prevents gambling from being a trade. The law defines a trade as "every trade, manufacture, adventure or concern in the nature of trade." The courts decided that gambling did not fit that description. That makes perfect sense because if it were a trade every gambler would be able to set his losses against tax. There are more losses than winnings in the gambling world.
uk forex tax?
getreal
does anybody know if there is any tax on forex profits in the uk either on a corporation or individual, and if you ( dont take a distribution ) would there be any tax liability
Answer
I recently saw a good post on the UK taxation of Forex on a blog at GFT here is the link. http://forex.gftforex.com/public/blog/132336
I also understand that the max corporate tax in the UK is 19%. You may want to explore this route as well.
Paul
I recently saw a good post on the UK taxation of Forex on a blog at GFT here is the link. http://forex.gftforex.com/public/blog/132336
I also understand that the max corporate tax in the UK is 19%. You may want to explore this route as well.
Paul
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Learning Forex trading?
Posted by Ryanita
on , under
forex 3000 dollars
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comments (0)
RRG
Im not new to trading im a trend follower/ band trader i mostly use technical analysis but i trade stocks. Recently a few days ago i said wth why not try forex because i was reading about Randy Mckay who turned 2000 into 70000 in just 7 months! WOW. Before i start trading for real though i want to know alot more about this business. Is babypips.com a good site to do schooling on??? Any recommended books to read?? im just 19 years old ive been trading since 9th grade.. not with real money though but i figure forex and technical analysis work in the same way so if i can make money in stocks why not curriences? plus i get waaaayyyy more leverage and profits. Seriously i wouldnt put all my money into this but its a good way to diversify. I plan to start this year trading with 4000 dollars i will put 3000 into stocks and maybe 1000 into curriences using etoro.. but this is just a plan for now i dont plan on starting till the end of this year so this gives me this year to learn as much as possible and paper trade..
or i was thinking of just opening an etoro account with 100 bucks and see what i can make happen cuz the eur/usd is seriously gonna go up its a no brainer
Answer
and watch your money vanish faster than the winter snow in spring,if it was just that easy don't you think everybody would be into Forex,these companies LOVE beginners....
and watch your money vanish faster than the winter snow in spring,if it was just that easy don't you think everybody would be into Forex,these companies LOVE beginners....
Forex trading questions?
Joe
The USD/JPY is trading now at about 80.4900 so how much would it cost me to buy 3000 shares of that currency? Also how much money am i required to have to day trade Forex? Because i know you need like 20 grand to day trade stocks. I have been trading stocks now for a couple months and i have a good trading strategy down using MA stochastic and a couple other indicators but will they still be effective in forex trading? Thank You
Answer
There is no minimum to day trade Forex, except the minimum deposit set by your broker (usually $100 to $2000). There are also no restrictions on shorting.
Forex trades in terms of lots, or notional value. And how much you can buy depends on your account type and leverage. In the US, the maximum leverage is 50:1. So, if you buy 1 mini lot of USD/JPY, you would be shorting 10,000 dollars worth of Yen, and that would cost you 1/50 of that amount, which is $200 of margin. Each pip, or 0.01 movement, would gain or lose approximately $1 depending on the currency.
As another example, if you buy one mini lot of GBP/USD, you'd be buying 10,000 dollars worth of GBP, and each pip would be a movement of 0.0001, which would still gain or lose $1.
Honestly, if you're successful in the stock market, I would stay there. But it wouldn't hurt to try Forex on a free demo account. Forex is cheaper to trade, and doesn't have bear markets in the same sense as the stock market. But it's also much more volatile.
There is no minimum to day trade Forex, except the minimum deposit set by your broker (usually $100 to $2000). There are also no restrictions on shorting.
Forex trades in terms of lots, or notional value. And how much you can buy depends on your account type and leverage. In the US, the maximum leverage is 50:1. So, if you buy 1 mini lot of USD/JPY, you would be shorting 10,000 dollars worth of Yen, and that would cost you 1/50 of that amount, which is $200 of margin. Each pip, or 0.01 movement, would gain or lose approximately $1 depending on the currency.
As another example, if you buy one mini lot of GBP/USD, you'd be buying 10,000 dollars worth of GBP, and each pip would be a movement of 0.0001, which would still gain or lose $1.
Honestly, if you're successful in the stock market, I would stay there. But it wouldn't hurt to try Forex on a free demo account. Forex is cheaper to trade, and doesn't have bear markets in the same sense as the stock market. But it's also much more volatile.
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In FOREX trading, which pair should i choose on Forex News release ?
Posted by Ryanita
on
Friday, May 16, 2014
, under
forex yahoo answers
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comments (0)
Vian'z
Dear Professional Forex Traders that roaming in yahoo answers :D,
I want to trade forex using fundamental analysis, which depends on High Impact Forex News (HIFN). Now, which pair should i chose on that HIFN ? buy or sell ? in which pair ?
ex : 1. There is a news that telling that USD is getting stronger. I know that stronger USD in forex news making the EUR/USD graph/candlestick get even lower, then what pair should i choose to open position sell ? is it EUR/USD ? AUD/USD ? GBP/USD ? or NZD/USD ?
then when the USD is getting stronger, i also can trade buy in USD/JPY, USD/CHF, and USD/CAD to get profit right ? :)
The question is which pair should i choose during that forex news, and which opportunity should i take ? sell or buy ? or i should open position (buy and sell) in all possible pair and opportunity like i mentioned before ?
or you can advice me for some (free) e-book about this thing ? or site ? or everything :)
Thanks before :D
Answer
You're not going to like this answer but here it is anyway. Fundamental trading in currencies is not a straightforward idea. There are a few questions to demonstrate what I mean - how do you define your risk? Do you just buy and hold and hope for the best? Are you aware of the high spread charges that occur during news releases? Do you know that banks like to sucker people into a move before shoving it the other direction so they can fill their orders? Or that the market doesn't always move in a "rational" manner on news? (i.e, drops like a rock on good news, why?)
I do make money consistently from the market with limited, responsible risk. In fact, as of right now, I have a handsome profit from today's FOMC move, but I used the charts to get me in at a good, limited risk place and not a reliance on getting the first bits of news and trying to beat the people with instant news feeds. You can dabble in this if you like but eventually you'll understand what I'm talking about. Feel free to drop by our small community if you want to learn more about trading, we'll be more than happy to help. :)
You're not going to like this answer but here it is anyway. Fundamental trading in currencies is not a straightforward idea. There are a few questions to demonstrate what I mean - how do you define your risk? Do you just buy and hold and hope for the best? Are you aware of the high spread charges that occur during news releases? Do you know that banks like to sucker people into a move before shoving it the other direction so they can fill their orders? Or that the market doesn't always move in a "rational" manner on news? (i.e, drops like a rock on good news, why?)
I do make money consistently from the market with limited, responsible risk. In fact, as of right now, I have a handsome profit from today's FOMC move, but I used the charts to get me in at a good, limited risk place and not a reliance on getting the first bits of news and trying to beat the people with instant news feeds. You can dabble in this if you like but eventually you'll understand what I'm talking about. Feel free to drop by our small community if you want to learn more about trading, we'll be more than happy to help. :)
Where to sell forex related software?
MD terp
For any of those of you who do not know, forex is like stock, but forex trades and sells different currencies. Please do not say clickbank because I am already a vendor there. Ebay is terribly under priced too. Any help would be appreciated.
Answer
Not Yahoo Answers. There are so many forex spammers here that users would just assume that your product is more of the same debris.
Not Yahoo Answers. There are so many forex spammers here that users would just assume that your product is more of the same debris.
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FOREX, which is the best zigzag currency pair?
Posted by Ryanita
on , under
forex zigzag
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comments (0)
PAK
Answer
What is "zigzag currency pair"?
If you are talking about the pair that moves or fluctuates the most, it is the GBP/USD.
If you would like to know more about how you can invest in and trade the forex market, click on http://www.4xmoneytrain.com
What is "zigzag currency pair"?
If you are talking about the pair that moves or fluctuates the most, it is the GBP/USD.
If you would like to know more about how you can invest in and trade the forex market, click on http://www.4xmoneytrain.com
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Forex Trading in US that supports Paypal money?
Posted by Ryanita
on
Wednesday, May 14, 2014
, under
forex us
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comments (0)
Joe Pat
looking for a forex trading site that supports US citizens as well as paypal money. Thanks
Answer
Not very likely. They want ACH bank transfers.
FOREX trading is a scam. Well, for 99.47% of people it is a scam. Seventy-five percent of all investors lose nearly their entire stake in just a few months. The problem is that the company sets the exchange rate, not the open market. Also, if you buy on margin (required for almost everyone) the company can force sale of your shares when a currency falls a tiny amount, thereby not letting you survive any sort of fluctuations. Stay away. You'll have better luck at the roulette wheel, which isn't saying much.
http://www.latimes.com/business/la-fi-amateur-currency-trading-20110403,0,588787.story
Not very likely. They want ACH bank transfers.
FOREX trading is a scam. Well, for 99.47% of people it is a scam. Seventy-five percent of all investors lose nearly their entire stake in just a few months. The problem is that the company sets the exchange rate, not the open market. Also, if you buy on margin (required for almost everyone) the company can force sale of your shares when a currency falls a tiny amount, thereby not letting you survive any sort of fluctuations. Stay away. You'll have better luck at the roulette wheel, which isn't saying much.
http://www.latimes.com/business/la-fi-amateur-currency-trading-20110403,0,588787.story
What significant is between asian, european, and US session in the forex market?
slash4gunn
Some people said that the Asian session always go up and the EURO session will counter by the opposite (down)... is this theory true
Answer
In Forex, there isn't any up and down like you would have in the Dow or S&P. Currencies are traded in pairs such as the NZD/USD so if the Kiwi goes up, the dollar by definition, goes down. The dollar may go up against once currency and at the same time go down against the other. This in fact happened the other day when the Bank of Japan announced a rate hike - dollar up against the Yen but down against the Aussie.
The market is open 24 hours beginning Sunday afternoon EST until close Friday afternoon. There is a good amount of overlap of hours in each market (Tokyo, Hong Kong, Singapore, London, Europe, New York, San Francisco). There are periods when there is typically more activity than others. Much of it depends on whether any economic announcements are being made that day by one country or another. Quite often, things are a bit slow from about 8:00pm EST until around midnight. At that time, people in the eastern parts of Europe are getting up and becoming active. One currency pair may be very active during European daylight hour and slow later on and vice versa.
If you are considering trading Forex, one of the things you should do is make a table that shows the number of pips each of the majors move during each hour of the day and find the average number of pips per hour for a month. Once you have a platform, it's easy enough to do using historical data although it's time consuming but you need to be aware of when movement typically occurs.
In Forex, there isn't any up and down like you would have in the Dow or S&P. Currencies are traded in pairs such as the NZD/USD so if the Kiwi goes up, the dollar by definition, goes down. The dollar may go up against once currency and at the same time go down against the other. This in fact happened the other day when the Bank of Japan announced a rate hike - dollar up against the Yen but down against the Aussie.
The market is open 24 hours beginning Sunday afternoon EST until close Friday afternoon. There is a good amount of overlap of hours in each market (Tokyo, Hong Kong, Singapore, London, Europe, New York, San Francisco). There are periods when there is typically more activity than others. Much of it depends on whether any economic announcements are being made that day by one country or another. Quite often, things are a bit slow from about 8:00pm EST until around midnight. At that time, people in the eastern parts of Europe are getting up and becoming active. One currency pair may be very active during European daylight hour and slow later on and vice versa.
If you are considering trading Forex, one of the things you should do is make a table that shows the number of pips each of the majors move during each hour of the day and find the average number of pips per hour for a month. Once you have a platform, it's easy enough to do using historical data although it's time consuming but you need to be aware of when movement typically occurs.
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Forex vs Stock market?
Posted by Ryanita
on , under
forex millionaires
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comments (0)
Damaro
As a trader, where is it "easiest" to become a millionaire?
At Forex trading or by trading Stocks at the market?
*What is the big difference between them both?
Answer
Forex is a "zero-sum" proposition...the only way for one Forex trader to make a profit is for another Forex trader to make a loss...
Stock trading allows for any (or even all) holders of a particular stock to make a profit, so long as the underlying company remains in business.
It is easy to become a millionaire buying (and holding) quality stocks...
Forex is a "zero-sum" proposition...the only way for one Forex trader to make a profit is for another Forex trader to make a loss...
Stock trading allows for any (or even all) holders of a particular stock to make a profit, so long as the underlying company remains in business.
It is easy to become a millionaire buying (and holding) quality stocks...
Can someone become a millionaire by trading forex?
Q.
Answer
Yes someone can become a millionaire by trading forex. Its the 5-10% out there that makes the money 90% of the people losses.
It is about understanding and mastering it that makes you the top 10%.
Forex is not difficult if you understand price action and strategies to apply into play. Money management and trading psychology is the key to success.
Ezekiel
Yes someone can become a millionaire by trading forex. Its the 5-10% out there that makes the money 90% of the people losses.
It is about understanding and mastering it that makes you the top 10%.
Forex is not difficult if you understand price action and strategies to apply into play. Money management and trading psychology is the key to success.
Ezekiel
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How we can benifit from forex?
Posted by Ryanita
on
Tuesday, May 13, 2014
, under
forex login
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comments (0)
Q. I am going to invest & need your valuable suggestions.
Answer
you can check your options in this site. enables forex trading anywhere in the world where internet connection is available; offers background information for the Forex market, Guided-Tour, seminars, one-on-one training, CHAT, telephone support, as well as other assistance tools, including technical support; enables users to start trading immediately and with no software required to download you may login to your account and trade anytime, from anywhere; allows you to fund your account with your credit card, so you can start trading immediately, regardless of banking work days or hours; And If you are a frequent trader dealing in larger volumes, they offer tailor-made account to suit your exact needs (spreads, leverage ratio, mobile-phone alerts, etc.); also uses the latest highly sophisticated and advanced technologies in order to offer you up-to-the-second quotes.
one unique feature of this site is whether you are a beginner or an experienced trader, for a minimum deposit of $100 which will also form part of your initial capital, they will provide an Account Service Manager (ASM) to be your personal consultant who will serve as your mentor and trading partner, will answer all your technical questions and with whom you can talk live over the phone, email, chat or any form of communication available. your ASM will even trade along with you so that you will get to familiar yourself about how the real trade is done and give you the tips and tricks you need to know and do to achieve a profitable forex dealing.
you can check your options in this site. enables forex trading anywhere in the world where internet connection is available; offers background information for the Forex market, Guided-Tour, seminars, one-on-one training, CHAT, telephone support, as well as other assistance tools, including technical support; enables users to start trading immediately and with no software required to download you may login to your account and trade anytime, from anywhere; allows you to fund your account with your credit card, so you can start trading immediately, regardless of banking work days or hours; And If you are a frequent trader dealing in larger volumes, they offer tailor-made account to suit your exact needs (spreads, leverage ratio, mobile-phone alerts, etc.); also uses the latest highly sophisticated and advanced technologies in order to offer you up-to-the-second quotes.
one unique feature of this site is whether you are a beginner or an experienced trader, for a minimum deposit of $100 which will also form part of your initial capital, they will provide an Account Service Manager (ASM) to be your personal consultant who will serve as your mentor and trading partner, will answer all your technical questions and with whom you can talk live over the phone, email, chat or any form of communication available. your ASM will even trade along with you so that you will get to familiar yourself about how the real trade is done and give you the tips and tricks you need to know and do to achieve a profitable forex dealing.
how do i start forex trading?
jossy
Answer
How do you start forex trading? For an institution: you either get hired for a job to do that or for private traders: Well that's simple to do. You call up a forex dealer. Tell them you want to invest some money in trading foreign currencies. Send them your money. Login to your account and start trading forex!
But no. I guess you weren't really asking that were you? In addition to the mundane process of joining a forex dealer. The next task you must undertake when thinking about starting to trade forex for profit (and perhaps for a living or a side income) is to educate yourself.
Education is key for successful forex trading. You must start learning the basics about trading and to analyse the markets. Do your research: ask friends and traders what they do, what they think and what they advise you to do if you want to start trading.
But remember, the secret key in forex trading is DISCIPLINE. Without the discipline for trading plans, rules and education, you will definitely cut your chances of winning in the forex game.
How do you start forex trading? For an institution: you either get hired for a job to do that or for private traders: Well that's simple to do. You call up a forex dealer. Tell them you want to invest some money in trading foreign currencies. Send them your money. Login to your account and start trading forex!
But no. I guess you weren't really asking that were you? In addition to the mundane process of joining a forex dealer. The next task you must undertake when thinking about starting to trade forex for profit (and perhaps for a living or a side income) is to educate yourself.
Education is key for successful forex trading. You must start learning the basics about trading and to analyse the markets. Do your research: ask friends and traders what they do, what they think and what they advise you to do if you want to start trading.
But remember, the secret key in forex trading is DISCIPLINE. Without the discipline for trading plans, rules and education, you will definitely cut your chances of winning in the forex game.
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forex trade?
Posted by Ryanita
on
Monday, May 12, 2014
, under
forex 7 days system
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comments (0)
nosmaxwell
Is forex trade profitable? How does one get started and what is the best broker to use?
Answer
Hi,
Of course forex is profitable and it is very exciting business. You may trade 5,5 days per wheek; 24 hours a day from Sunday night to Friday night.
Main rules to win:
Always have trading plan,
Be patient - market always be there
Don't be greedy,
Don't set too big goals,
Never risk more than 1%-2% of your trading capital,
Always use reasonable stop loss orders.
And note markets are not places - markets are people.
If you are interesting I could introduce you to one of forex broker leaders that is located in SWITZERLAND and Regulated by the Swiss Federal Department of Finance; audited by KPMG.
They have very tight spreads. Total 25 currency pairs Gold and Silver.
SPREADS:
2 pips for EURUSD, USDJPY, AUDUSD, EURGBP, EURCHF;
3 pips for GBPUSD, USDCHF, USDCAD, EURJPY;
4 pips for CADJPY, CHFJPY;
5 pips for NZDUSD, AUDJPY;
6 pips for EURAUD, GBPCHF, NZDJPY;
7 pips for EURCAD, GBPJPY;
8 pips for GBPCAD, GBPAUD, AUDCHF, CADCHF, NZDCHF;
10 pips for AUDCAD, AUDNZD.
LEVERAGE 1:200 default but client could chose the leverage from 1:1 to 1:200 at the account opening procedure.
MARGINS. The margin or leverage a client can have depends on the client's account equity. The table below shows margin requirements for the different equity levels:
Less than 25,000 - 0.5%
25,000 to 1,000,000 - 1%
1,000,000 to 5,000,000 - 2%
5,000,000 to 10,000,000 - 3%
Above 10,000,000 - 5%
Please note that on weekends and holidays margin requirements remains the same.
SWAPS are counted as negative as positive. Also is available swap-free accounts.
STOP and LIMIT orders may be placed as close as 5 pips from market price
TRADING TERMINAL Meta Trader 4.
Clients can choose to have their accounts denominated in either USD, EUR, GBP, JPY, CHF, AUD or CAD.
Initial account opening deposit from US$2000. From first view it probably looks high comparing with other brokers who allow mini accounts and minimum initial deposit from USD250 but it is more useful and safer because clients are more protected from quick stop out and total loss of the initial deposit in the case if unfortunately it would be several unlucky trades in rage.
This is regular forex trading account however it is allowed trading in mini lots (from 0.1 lot).
If you are interesting I could introduce you to them please e-mail or PM me (press on my name) and I provide you with further information. Furthermore I could provide you for FREE with more than 50 trading e-books and trading systems that worth more than several thousand dollars and are very useful as for beginners as for experienced traders.
If you have any questions, please don't hesitate and contact me (press on my name).
Good luck!
Hi,
Of course forex is profitable and it is very exciting business. You may trade 5,5 days per wheek; 24 hours a day from Sunday night to Friday night.
Main rules to win:
Always have trading plan,
Be patient - market always be there
Don't be greedy,
Don't set too big goals,
Never risk more than 1%-2% of your trading capital,
Always use reasonable stop loss orders.
And note markets are not places - markets are people.
If you are interesting I could introduce you to one of forex broker leaders that is located in SWITZERLAND and Regulated by the Swiss Federal Department of Finance; audited by KPMG.
They have very tight spreads. Total 25 currency pairs Gold and Silver.
SPREADS:
2 pips for EURUSD, USDJPY, AUDUSD, EURGBP, EURCHF;
3 pips for GBPUSD, USDCHF, USDCAD, EURJPY;
4 pips for CADJPY, CHFJPY;
5 pips for NZDUSD, AUDJPY;
6 pips for EURAUD, GBPCHF, NZDJPY;
7 pips for EURCAD, GBPJPY;
8 pips for GBPCAD, GBPAUD, AUDCHF, CADCHF, NZDCHF;
10 pips for AUDCAD, AUDNZD.
LEVERAGE 1:200 default but client could chose the leverage from 1:1 to 1:200 at the account opening procedure.
MARGINS. The margin or leverage a client can have depends on the client's account equity. The table below shows margin requirements for the different equity levels:
Less than 25,000 - 0.5%
25,000 to 1,000,000 - 1%
1,000,000 to 5,000,000 - 2%
5,000,000 to 10,000,000 - 3%
Above 10,000,000 - 5%
Please note that on weekends and holidays margin requirements remains the same.
SWAPS are counted as negative as positive. Also is available swap-free accounts.
STOP and LIMIT orders may be placed as close as 5 pips from market price
TRADING TERMINAL Meta Trader 4.
Clients can choose to have their accounts denominated in either USD, EUR, GBP, JPY, CHF, AUD or CAD.
Initial account opening deposit from US$2000. From first view it probably looks high comparing with other brokers who allow mini accounts and minimum initial deposit from USD250 but it is more useful and safer because clients are more protected from quick stop out and total loss of the initial deposit in the case if unfortunately it would be several unlucky trades in rage.
This is regular forex trading account however it is allowed trading in mini lots (from 0.1 lot).
If you are interesting I could introduce you to them please e-mail or PM me (press on my name) and I provide you with further information. Furthermore I could provide you for FREE with more than 50 trading e-books and trading systems that worth more than several thousand dollars and are very useful as for beginners as for experienced traders.
If you have any questions, please don't hesitate and contact me (press on my name).
Good luck!
Silicon Forex System Reviews?
MadKidz
I am looking for a website that provides customer reviews of expert advisors for forex trading. Preferably for the metatrader 4 platform.
Answer
I found a site that offers complete customer ratings and reviews on every forex expert advisor ever made at http://forexautopilotsystems.com
From the site
"Forex Silicon is a relatively new expert advisor. The systemâs win/loss ratio is about 75% with an average of 7 consecutive winning trades every 2 losing ones. Also, Silicon Forex takes [on average] one trade every three days and the monthly average is in the +400 pips neighborhood. I recommend this for long term trading."
Again the site is:
http://forexautopilotsystems.com
good luck
I found a site that offers complete customer ratings and reviews on every forex expert advisor ever made at http://forexautopilotsystems.com
From the site
"Forex Silicon is a relatively new expert advisor. The systemâs win/loss ratio is about 75% with an average of 7 consecutive winning trades every 2 losing ones. Also, Silicon Forex takes [on average] one trade every three days and the monthly average is in the +400 pips neighborhood. I recommend this for long term trading."
Again the site is:
http://forexautopilotsystems.com
good luck
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How to pyramid on forex?
Posted by Ryanita
on , under
forex risk calculator
|
comments (0)
Prince
Hi all!
I wonder,how and when to pyramid as soon as I see that trade is profitable.
Is there any kind of indicator,calculator,tutorial,etc which can help me?
Thanks
Answer
What do you mean by Pyramid? You mean adding on to a position or you mean compounding your account to increase it's size.
For adding on, I don't recommend it unless you are confident with the strength of the trend to drop a little more risk in. It's a good idea to lock in profits of your already profitable position with a +ve stop loss as well.
I don't recommend compounding either, at least until you have withdrawn your profits up till the stage where you have taken your initial capital back so all you are left with is pure profits as risk capital. For instance, you deposited $10k, don't compound until you withdraw at least $10k again. My personal habit is to withdraw some or all of the week's profits on Fridays. After all, aren't we trading to make a profit and reap the benefits of those profits by restocking our bank accounts?
What do you mean by Pyramid? You mean adding on to a position or you mean compounding your account to increase it's size.
For adding on, I don't recommend it unless you are confident with the strength of the trend to drop a little more risk in. It's a good idea to lock in profits of your already profitable position with a +ve stop loss as well.
I don't recommend compounding either, at least until you have withdrawn your profits up till the stage where you have taken your initial capital back so all you are left with is pure profits as risk capital. For instance, you deposited $10k, don't compound until you withdraw at least $10k again. My personal habit is to withdraw some or all of the week's profits on Fridays. After all, aren't we trading to make a profit and reap the benefits of those profits by restocking our bank accounts?
Forex arbitrage how much scope?
Robi da ko
All forex masters this is for you
How much do you think there are arbitrage opportunities (arbs) a day on forex? (in percentages)
Are there any forex arbitrage services?
compare forex arbitrage with sports arbitrage, which do you think should be preferred?
Why?
Thanx
Answer
Forex Arbitrage is an arbitrage among real rates and synthetic cross rates in different local markets.
A one possible way to realize this strategy is to find three brokers having the same clearing firm. Then you should make agreement with this clearing firm on "netting" services. It means that clearing firm will clear (net) your positions across three pairs at specified time using the opening rates. For example, in the example above suppose you had opened the following positions long 100,000 EUR/USD; short 100,000 EUR/GBP; and short 72,310 GBP/USD at 10:00AM and instructed the clearing firm to clear these position at 16:00 PM at the opening rates. The netting/clearing gives the following results: Long EUR from the first pair and short EUR from the second pair gives zero exposure in EUR. Long position in GDP from the second pair and short position from the third pair gives zero exposure in GBP. Short position from the first pair ($118,370) in USD and long position from the third pair ($118,501) in USD gives you $131 profit without open positions and exposures.
The second possible way is to use some agreements (options or swap) to guaranty clearing/netting at these specific rates, which give risk-free arbitrage profit.
I use Forex arbitrage calculator for this. and my target depend from day to day. sometimes we get many opportunities while sometime very less. Also i prefer currency trading and futures as they are more rewarding that arbitrage
Forex Arbitrage is an arbitrage among real rates and synthetic cross rates in different local markets.
A one possible way to realize this strategy is to find three brokers having the same clearing firm. Then you should make agreement with this clearing firm on "netting" services. It means that clearing firm will clear (net) your positions across three pairs at specified time using the opening rates. For example, in the example above suppose you had opened the following positions long 100,000 EUR/USD; short 100,000 EUR/GBP; and short 72,310 GBP/USD at 10:00AM and instructed the clearing firm to clear these position at 16:00 PM at the opening rates. The netting/clearing gives the following results: Long EUR from the first pair and short EUR from the second pair gives zero exposure in EUR. Long position in GDP from the second pair and short position from the third pair gives zero exposure in GBP. Short position from the first pair ($118,370) in USD and long position from the third pair ($118,501) in USD gives you $131 profit without open positions and exposures.
The second possible way is to use some agreements (options or swap) to guaranty clearing/netting at these specific rates, which give risk-free arbitrage profit.
I use Forex arbitrage calculator for this. and my target depend from day to day. sometimes we get many opportunities while sometime very less. Also i prefer currency trading and futures as they are more rewarding that arbitrage
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Question about Forex market?
Posted by Ryanita
on , under
forex 100
|
comments (0)
Stephen Ri
$1.45 for 1 GBP. It used to be $2.00. If it went back to $2.00, it would be an increase of 38%. Does my investment really just increase in value to 38%? What sort of hidden fees are there, etc. And how likely is it that GBP would even return to that value.
Answer
The leverage for Forex is 100:1. This means that you only need a $1000 to control an amount $100000.
1 pip is 0.0001 and is worth USD $10 for GBP/USD currency pair. If GBP/USD goes up from 1.45 to 2, it will be a profit of 5500 pips * 10 = USD $55000. This makes the return to be 5500% for the initial margin of USD $1000.
There is no commission for Forex but you need to take care of the bid/ask spread in the trade. When you roll over to the next day, you will either receive interest or pay interest depending on which currency have the higher interest rate. If you buy the currency with the higher interest, you will receive interest when you roll over.
IMHO, it is unlikely will GBP/USD return to $2 level in the short term as the economy outlook is uncertain.
The leverage for Forex is 100:1. This means that you only need a $1000 to control an amount $100000.
1 pip is 0.0001 and is worth USD $10 for GBP/USD currency pair. If GBP/USD goes up from 1.45 to 2, it will be a profit of 5500 pips * 10 = USD $55000. This makes the return to be 5500% for the initial margin of USD $1000.
There is no commission for Forex but you need to take care of the bid/ask spread in the trade. When you roll over to the next day, you will either receive interest or pay interest depending on which currency have the higher interest rate. If you buy the currency with the higher interest, you will receive interest when you roll over.
IMHO, it is unlikely will GBP/USD return to $2 level in the short term as the economy outlook is uncertain.
Trading Forex--is 100% gain in one year possible?
Q. This blog claims it is possible, trading only with $8.
http://100percentforexchallenge.blogspot.com/
What do you think?
http://100percentforexchallenge.blogspot.com/
What do you think?
Answer
Don't think 100% is anything to shout at. Generally people target for a lot more.
Don't think 100% is anything to shout at. Generally people target for a lot more.
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FOREX trading?
Posted by Ryanita
on , under
online forex trading
|
comments (0)
saya_siapa
Anybody success in forex trading before?
I'm interested with forex trading.
Answer
I´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.
If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you become much richer than you are today.
My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:
We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.
Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.
Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.
For me "All stocks are equally worthlessâ
I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.
I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.
Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin⦠That´s why so many new traders (and investors) lose money.
Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.
The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.
But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their
online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.
It's easy to see why trading the open is the market's prime time for profiting from other online traders.
The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.
Learn to trade as a professional Market Maker ,not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.
There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points
in minutes OTHER than during the first hour the stock market is open. That's why I love trading the open so much.
I trade only when I have an edge and that means "only the first hour the market is open".
If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.
I can carry on with the advises about how to make money trading, but if you ask me:
"What is the best thing you can do for me?
I will say:
Give yourself a BIG favor and go to this "Top Secret" site and learn how to get the BEST stocks that will make the largest and fastest day trading profits you´ve ever seen, all by yourself...
www.onehourtrading.com
After you review this site you won´t need system, strategy, book, software or mentor to tell you what to do,
you will be able to profit HUGE every day.
Good luck and good trading,
John Fontaine
I´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.
If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you become much richer than you are today.
My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:
We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.
Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.
Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.
For me "All stocks are equally worthlessâ
I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.
I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.
Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin⦠That´s why so many new traders (and investors) lose money.
Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.
The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.
But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their
online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.
It's easy to see why trading the open is the market's prime time for profiting from other online traders.
The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.
Learn to trade as a professional Market Maker ,not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.
There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points
in minutes OTHER than during the first hour the stock market is open. That's why I love trading the open so much.
I trade only when I have an edge and that means "only the first hour the market is open".
If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.
I can carry on with the advises about how to make money trading, but if you ask me:
"What is the best thing you can do for me?
I will say:
Give yourself a BIG favor and go to this "Top Secret" site and learn how to get the BEST stocks that will make the largest and fastest day trading profits you´ve ever seen, all by yourself...
www.onehourtrading.com
After you review this site you won´t need system, strategy, book, software or mentor to tell you what to do,
you will be able to profit HUGE every day.
Good luck and good trading,
John Fontaine
Online Forex trading through websites?
-----
Can any body here give me information about Forex trading?
like how much can i earn through this...? Can i apply for forex Online like www.forex.Com is?....how much useful Forex treading is if we do it through websites online please help me i want to start it through internet?..or do you know any other website of forex trading?
Answer
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words "Forex" and "lose" to see this is the consensus.
Forex is what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It's a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It's a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: "Go to Forexcrap . com/q2347." The "q2347" is a signal to the Forexcrap site that you are being referred to them by "q2347." If they sell something to you, "q2347" gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a good number of trolls out there that like to pretend they are successful forex traders just for the fun of it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It's like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words "Forex" and "lose" to see this is the consensus.
Forex is what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It's a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It's a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: "Go to Forexcrap . com/q2347." The "q2347" is a signal to the Forexcrap site that you are being referred to them by "q2347." If they sell something to you, "q2347" gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a good number of trolls out there that like to pretend they are successful forex traders just for the fun of it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It's like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
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FOREX - SI IT THE RIGHT OPTION NOW ?
Posted by Ryanita
on
Sunday, May 11, 2014
, under
forex options
|
comments (0)
TheRightIn
Hi all
Is FOREX the right option in these days when the stock exchanges are crashing ?
Please expalin
ec
Answer
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words "Forex" and "lose" to see this is the consensus.
Forex is what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professions at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It's a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It's a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It's like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words "Forex" and "lose" to see this is the consensus.
Forex is what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professions at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It's a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It's a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It's like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
Forex vs Options & ETF's; which would be better to invest on?
tonioah
I have $3000 to invest, I'm doing research on the mentioned options; which would be better Forex, Options, or ETF's?
Answer
What you have just asked is tantamount to asking :
"Beef vs Fish & Pork, which would be better to eat?"
These are completely different financial instruments that serve very unique and different purposes and it largely depends on what you are trying to achieve. For example, if you want to invest or trade on your opinion that the US dollar will continue to weaken against the Euro, you would of course do FOREX, right? If you want to invest in a certain market or sector movement, you would of course not invest in forex but go for an ETF that represents what you want to speculate in, right?
So, the thing is, it all starts from you, yourself. You need to understand and choose what works for you. There are pros and cons in ALL kinds of financial instruments and people usually specialise deeply in the one that they understand and are able to attain consistent success in.
I know a lot of very rich forex traders and I also know a lot of broke forex traders. I know a lot of very rich option traders and I also know a lot of broke option traders. What is the difference? The difference is knowledge. Those that has deep enough knowledge and experience in a chosen field usually becomes successfull and those lacking of knowledge will usually go broke. The markets is a merciless place where the more knowledge you have, the less risk you will run into.
So if you ask me, the starting point is not in deciding what instrument works for you and trying to gamble your $3000 away but instead continue to invest in more knowledge until you are certain of what you want to do.
I have personally chosen to trade options and have made it my life long career. It has taken me from completely broke to stock market millionaire by the age of 28 and I list some of the books that took me down this path many years ago at http://www.bestoptiontradingbooks.com .
Hope these information helps.
http://www.mastersoequity.com
.
What you have just asked is tantamount to asking :
"Beef vs Fish & Pork, which would be better to eat?"
These are completely different financial instruments that serve very unique and different purposes and it largely depends on what you are trying to achieve. For example, if you want to invest or trade on your opinion that the US dollar will continue to weaken against the Euro, you would of course do FOREX, right? If you want to invest in a certain market or sector movement, you would of course not invest in forex but go for an ETF that represents what you want to speculate in, right?
So, the thing is, it all starts from you, yourself. You need to understand and choose what works for you. There are pros and cons in ALL kinds of financial instruments and people usually specialise deeply in the one that they understand and are able to attain consistent success in.
I know a lot of very rich forex traders and I also know a lot of broke forex traders. I know a lot of very rich option traders and I also know a lot of broke option traders. What is the difference? The difference is knowledge. Those that has deep enough knowledge and experience in a chosen field usually becomes successfull and those lacking of knowledge will usually go broke. The markets is a merciless place where the more knowledge you have, the less risk you will run into.
So if you ask me, the starting point is not in deciding what instrument works for you and trying to gamble your $3000 away but instead continue to invest in more knowledge until you are certain of what you want to do.
I have personally chosen to trade options and have made it my life long career. It has taken me from completely broke to stock market millionaire by the age of 28 and I list some of the books that took me down this path many years ago at http://www.bestoptiontradingbooks.com .
Hope these information helps.
http://www.mastersoequity.com
.
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Is trading on ForEx commodities or securities? Tax question!?
Posted by Ryanita
on , under
forex usd eur
|
comments (0)
John S
I am going to be paying income tax for the first time on some small earnings I made trading EUR/USD on the Foreign Exchange. I need to know if this type of trading is considered "commodities", subject to the 60/40 (23%) rate, or if this is considered "futures", and therefore 35% rate.
Answer
NOTE: "Forex Taxes" are applies to U.S. traders only. Foreign investors that are not residents or citizens of the United States of America do not have to pay any taxes on foreign exchange profits!
Forex Trading Taxation - Definition and Overview:
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
More and more investors from all over the world are accessing the largest financial markets online through their personal computers. As demand surges for foreign exchange trading, more and more U.S. Traders have to deal with taxation issues at the end of the year.
Forex: Taxed as Futures or Cash?
Currency traders involved in the forex spot (cash) market, can choose to be taxed under the same tax rules as regular commodities [IRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions). IRC 988 applies to cash forex unless the trader elects to opt out.
The Advantage of Section 1256 for Currency Traders Under Section 1256, forex traders can have a significant advantage over stock traders. By reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles), forex traders are allowed to split their capital gains on Schedule D using a 60% / 40% split. This means that 60% of the capital gains are taxed at the lower, long-term capital gains rate (currently 15%) and the remaining 40% at the ordinary or short-term capital gains rate, which depends on the tax bracket the trader falls under (as high as 35%). This results in an average rate of 23%, which is 12% less than the regular (short-term) rate.
If cash forex is subject to the Section 988 rules, how can a trader elect the more beneficial Section 1256 split? Please read on to find out more.
To Opt Out or Not to Opt Out of Section 988 !!
Companies that profit from the fluctuation in foreign exchange rates as part of their normal course of business, fall under Section 988. This means their gains and losses from foreign exchange (such as buying and selling of foreign goods) are treated as interest income or expense and get taxed accordingly. Consequently, they do not receive the beneficial 60/40 split.
Since forex traders are also exposed to daily exchange rate fluctuations, their trading activity falls under the provisions of Section 988 too - but don't worry. The IRS wants to be nice to you (so far). Because these daily fluctuations can be considered part of a currency trader's assets in the normal course of his business, the IRS gives the trader the option of rejecting (opting out) of Section 988 and electing that the gains be taxed under the favorable 60/40 split of Section 1256.
What do you have to do to opt out of Section 988? Even though you don't have to file anything with the IRS to opt out, you are required to do so "internally" before starting to trade; i.e., you must keep records in your own books about the fact that you are opting out of Section 988.
Many currency traders bend the rules by waiting after the year is over to see if they have any gains from their trading activities. If they do, they claim that they elected out of IRC 988 to enjoy the beneficial Section 1256 treatment. On the other hand, if the sum of the trades from cash forex is not positive, they stick with the traditional Section 988. Since (under the current tax law) it becomes very difficult to disprove whether the trader made the election at the beginning or at the end of the year, IRS has not yet begun to crack down on this activity.
What does a Forex Trader do When Tax Time Comes?
Forex traders should receive 1099 forms from their US-based broker at the end of the year like stock and futures traders do. No matter in what country your forex broker is based or what tax-related reports they provide, you could pull up reports online from your accounts and seek the help of a tax professional. No matter what you decide to do, don't fall into the temptation of lumping your trades with your section 1256 activity (if any). 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.
...To find out More how You can Become a Profitable Trader on a Consistent Basis, Please Visit Here: http://www.urlpire.com/?MALFY - You Will Learn Valuable Ways and Tips to help You Make Money Trading the Forex Market !!
NOTE: "Forex Taxes" are applies to U.S. traders only. Foreign investors that are not residents or citizens of the United States of America do not have to pay any taxes on foreign exchange profits!
Forex Trading Taxation - Definition and Overview:
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
More and more investors from all over the world are accessing the largest financial markets online through their personal computers. As demand surges for foreign exchange trading, more and more U.S. Traders have to deal with taxation issues at the end of the year.
Forex: Taxed as Futures or Cash?
Currency traders involved in the forex spot (cash) market, can choose to be taxed under the same tax rules as regular commodities [IRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions). IRC 988 applies to cash forex unless the trader elects to opt out.
The Advantage of Section 1256 for Currency Traders Under Section 1256, forex traders can have a significant advantage over stock traders. By reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles), forex traders are allowed to split their capital gains on Schedule D using a 60% / 40% split. This means that 60% of the capital gains are taxed at the lower, long-term capital gains rate (currently 15%) and the remaining 40% at the ordinary or short-term capital gains rate, which depends on the tax bracket the trader falls under (as high as 35%). This results in an average rate of 23%, which is 12% less than the regular (short-term) rate.
If cash forex is subject to the Section 988 rules, how can a trader elect the more beneficial Section 1256 split? Please read on to find out more.
To Opt Out or Not to Opt Out of Section 988 !!
Companies that profit from the fluctuation in foreign exchange rates as part of their normal course of business, fall under Section 988. This means their gains and losses from foreign exchange (such as buying and selling of foreign goods) are treated as interest income or expense and get taxed accordingly. Consequently, they do not receive the beneficial 60/40 split.
Since forex traders are also exposed to daily exchange rate fluctuations, their trading activity falls under the provisions of Section 988 too - but don't worry. The IRS wants to be nice to you (so far). Because these daily fluctuations can be considered part of a currency trader's assets in the normal course of his business, the IRS gives the trader the option of rejecting (opting out) of Section 988 and electing that the gains be taxed under the favorable 60/40 split of Section 1256.
What do you have to do to opt out of Section 988? Even though you don't have to file anything with the IRS to opt out, you are required to do so "internally" before starting to trade; i.e., you must keep records in your own books about the fact that you are opting out of Section 988.
Many currency traders bend the rules by waiting after the year is over to see if they have any gains from their trading activities. If they do, they claim that they elected out of IRC 988 to enjoy the beneficial Section 1256 treatment. On the other hand, if the sum of the trades from cash forex is not positive, they stick with the traditional Section 988. Since (under the current tax law) it becomes very difficult to disprove whether the trader made the election at the beginning or at the end of the year, IRS has not yet begun to crack down on this activity.
What does a Forex Trader do When Tax Time Comes?
Forex traders should receive 1099 forms from their US-based broker at the end of the year like stock and futures traders do. No matter in what country your forex broker is based or what tax-related reports they provide, you could pull up reports online from your accounts and seek the help of a tax professional. No matter what you decide to do, don't fall into the temptation of lumping your trades with your section 1256 activity (if any). 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.
...To find out More how You can Become a Profitable Trader on a Consistent Basis, Please Visit Here: http://www.urlpire.com/?MALFY - You Will Learn Valuable Ways and Tips to help You Make Money Trading the Forex Market !!
How do I pay income tax on ForEx earnings?
John S
I am doing normal daily trading of EUR/USD, trades lasting a few hours on average. I am not sure if this is considered futures or securities and I therefore don't know how to pay taxes on it.
Answer
NOTE: "Forex Taxes" are applies to U.S. traders only. Foreign investors that are not residents or citizens of the United States of America do not have to pay any taxes on foreign exchange profits!
Forex Trading Taxation - Definition and Overview:
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...
More and more investors from all over the world are accessing the largest financial markets online through their personal computers. As demand surges for foreign exchange trading, more and more U.S. Traders have to deal with taxation issues at the end of the year.
Forex: Taxed as Futures or Cash?
Currency traders involved in the forex spot (cash) market, can choose to be taxed under the same tax rules as regular commodities [IRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions). IRC 988 applies to cash forex unless the trader elects to opt out.
The Advantage of Section 1256 for Currency Traders Under Section 1256, forex traders can have a significant advantage over stock traders. By reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles), forex traders are allowed to split their capital gains on Schedule D using a 60% / 40% split. This means that 60% of the capital gains are taxed at the lower, long-term capital gains rate (currently 15%) and the remaining 40% at the ordinary or short-term capital gains rate, which depends on the tax bracket the trader falls under (as high as 35%). This results in an average rate of 23%, which is 12% less than the regular (short-term) rate.
If cash forex is subject to the Section 988 rules, how can a trader elect the more beneficial Section 1256 split? Please read on to find out more.
To Opt Out or Not to Opt Out of Section 988 !!
Companies that profit from the fluctuation in foreign exchange rates as part of their normal course of business, fall under Section 988. This means their gains and losses from foreign exchange (such as buying and selling of foreign goods) are treated as interest income or expense and get taxed accordingly. Consequently, they do not receive the beneficial 60/40 split.
Since forex traders are also exposed to daily exchange rate fluctuations, their trading activity falls under the provisions of Section 988 too - but don't worry. The IRS wants to be nice to you (so far). Because these daily fluctuations can be considered part of a currency trader's assets in the normal course of his business, the IRS gives the trader the option of rejecting (opting out) of Section 988 and electing that the gains be taxed under the favorable 60/40 split of Section 1256.
What do you have to do to opt out of Section 988? Even though you don't have to file anything with the IRS to opt out, you are required to do so "internally" before starting to trade; i.e., you must keep records in your own books about the fact that you are opting out of Section 988.
Many currency traders bend the rules by waiting after the year is over to see if they have any gains from their trading activities. If they do, they claim that they elected out of IRC 988 to enjoy the beneficial Section 1256 treatment. On the other hand, if the sum of the trades from cash forex is not positive, they stick with the traditional Section 988. Since (under the current tax law) it becomes very difficult to disprove whether the trader made the election at the beginning or at the end of the year, IRS has not yet begun to crack down on this activity.
What does a Forex Trader do When Tax Time Comes?
Forex traders should receive 1099 forms from their US-based broker at the end of the year like stock and futures traders do. No matter in what country your forex broker is based or what tax-related reports they provide, you could pull up reports online from your accounts and seek the help of a tax professional. No matter what you decide to do, don't fall into the temptation of lumping your trades with your section 1256 activity (if any). 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.
...To find out More how You can Become a Profitable Trader on a Consistent Basis, Please Visit Here: http://www.urlpire.com/?MALFY - You Will Learn Valuable Ways and Tips to help You Make Money Trading the Forex Market !!
NOTE: "Forex Taxes" are applies to U.S. traders only. Foreign investors that are not residents or citizens of the United States of America do not have to pay any taxes on foreign exchange profits!
Forex Trading Taxation - Definition and Overview:
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...
More and more investors from all over the world are accessing the largest financial markets online through their personal computers. As demand surges for foreign exchange trading, more and more U.S. Traders have to deal with taxation issues at the end of the year.
Forex: Taxed as Futures or Cash?
Currency traders involved in the forex spot (cash) market, can choose to be taxed under the same tax rules as regular commodities [IRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions). IRC 988 applies to cash forex unless the trader elects to opt out.
The Advantage of Section 1256 for Currency Traders Under Section 1256, forex traders can have a significant advantage over stock traders. By reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles), forex traders are allowed to split their capital gains on Schedule D using a 60% / 40% split. This means that 60% of the capital gains are taxed at the lower, long-term capital gains rate (currently 15%) and the remaining 40% at the ordinary or short-term capital gains rate, which depends on the tax bracket the trader falls under (as high as 35%). This results in an average rate of 23%, which is 12% less than the regular (short-term) rate.
If cash forex is subject to the Section 988 rules, how can a trader elect the more beneficial Section 1256 split? Please read on to find out more.
To Opt Out or Not to Opt Out of Section 988 !!
Companies that profit from the fluctuation in foreign exchange rates as part of their normal course of business, fall under Section 988. This means their gains and losses from foreign exchange (such as buying and selling of foreign goods) are treated as interest income or expense and get taxed accordingly. Consequently, they do not receive the beneficial 60/40 split.
Since forex traders are also exposed to daily exchange rate fluctuations, their trading activity falls under the provisions of Section 988 too - but don't worry. The IRS wants to be nice to you (so far). Because these daily fluctuations can be considered part of a currency trader's assets in the normal course of his business, the IRS gives the trader the option of rejecting (opting out) of Section 988 and electing that the gains be taxed under the favorable 60/40 split of Section 1256.
What do you have to do to opt out of Section 988? Even though you don't have to file anything with the IRS to opt out, you are required to do so "internally" before starting to trade; i.e., you must keep records in your own books about the fact that you are opting out of Section 988.
Many currency traders bend the rules by waiting after the year is over to see if they have any gains from their trading activities. If they do, they claim that they elected out of IRC 988 to enjoy the beneficial Section 1256 treatment. On the other hand, if the sum of the trades from cash forex is not positive, they stick with the traditional Section 988. Since (under the current tax law) it becomes very difficult to disprove whether the trader made the election at the beginning or at the end of the year, IRS has not yet begun to crack down on this activity.
What does a Forex Trader do When Tax Time Comes?
Forex traders should receive 1099 forms from their US-based broker at the end of the year like stock and futures traders do. No matter in what country your forex broker is based or what tax-related reports they provide, you could pull up reports online from your accounts and seek the help of a tax professional. No matter what you decide to do, don't fall into the temptation of lumping your trades with your section 1256 activity (if any). 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.
...To find out More how You can Become a Profitable Trader on a Consistent Basis, Please Visit Here: http://www.urlpire.com/?MALFY - You Will Learn Valuable Ways and Tips to help You Make Money Trading the Forex Market !!
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is 3000 dollars enough to start investing?
Posted by Ryanita
on , under
forex 3000 dollars
|
comments (0)
yup y
at least enough to make a measurable return?
also what would be the best market? should i go al DOW NASDAQ or should i mess with forex/ commodities as well? maybe a mutal fund?
or would it be best to just stick it in a CD, im willing to take risks but in the end i would take steady growth over a one night boom and bust
the other investment would be in a high end pc to grow my graphic design bussiness, however that would take up all of my money
Answer
3000 dollars is enough to do good investment. I would suggest you to invest in shares. Check the website http://money-review-site.com/shares.html
to learn more on shares and stock trading and how to select the best stocks.
Hope it helps
3000 dollars is enough to do good investment. I would suggest you to invest in shares. Check the website http://money-review-site.com/shares.html
to learn more on shares and stock trading and how to select the best stocks.
Hope it helps
I have 3000 dollars to invest in a stock or stocks, what do you suggest?
AJ
Answer
All the answers you've received (so far) will help you lose your money (quickly).
A. Forex.... great if you're an experienced trader. Keep in mind 90% of all Forex traders lose their money. On the ones that "win", they lose 40% of their trades (on average).
B. Stocks. Never invest in anything you don't understand & never take tips (from anyone or sourse).
Put your money in a savings account for a year. Take this time to learn investing. Learn "asset allocation". Just plain read as much as you can. Then (in a year) start investing. You'll know what to do that's best for you!
All the answers you've received (so far) will help you lose your money (quickly).
A. Forex.... great if you're an experienced trader. Keep in mind 90% of all Forex traders lose their money. On the ones that "win", they lose 40% of their trades (on average).
B. Stocks. Never invest in anything you don't understand & never take tips (from anyone or sourse).
Put your money in a savings account for a year. Take this time to learn investing. Learn "asset allocation". Just plain read as much as you can. Then (in a year) start investing. You'll know what to do that's best for you!
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