forex trading reviews

How is Forex Taxed?

The vast majority of people that are currently residing on the face of the earth have normal jobs which essentially entails them going to work in the morning and coming back home in the evening for five or so days a week. That results in them paying a fixed amount of taxes that their employer would most likely end up taking care of, and as a result of the fact that this is the case taxes are not the sort of thing that they need to think about on a day to day basis without a shadow of a doubt.

The thing is, if you intend to use forexfear to earn money through trading currencies and the like, suffice it to say that your taxation policies would require a lot more thought from you at this current point in time. The process by which traders get taxed is really different due to the reason that they are not earning money in a normal way. Rather, they make investments and sell them off, and each position can result in either a profit or a loss based on what actually occurred.

Your taxes will be split into two categories. Firstly, only your capital gains will end up being taxed, so you won’t have to pay anything for positions that are still open at the end of the fiscal year. If you make any capital gains, sixty percent of them will be taxed as long term gains. The remaining forty percent will be taxed as short term gains so you would be paying a lot less tax than a salary earner and most of your income would go straight into your bank account.