Do Forex Traders Pay Tax. Residents are not required to pay income tax. My answer to that is yes also a Forex Trader pays taxes on his earned assets.
There are four types of taxes that affect forex traders: Income tax is the tax you pay on your total earnings. Forex trading income under UK tax law: instrument types If the trading activity is performed through a spread betting account, income is tax-exempt under UK tax law. Normally Forex is short term as few traders stay in a trade for too long.
When it comes to tax on currency trading, the investors are often confused under what category their gains will be taxed.
How much tax do you pay on trading?
Yes, you pay taxes on your income, revenue, profits at whatever rate your tax rate indicates barring a few exceptions of which some are for traders. A: You would be taxed on the profit made if you are trading the forex and not just holding onto it for a few years as an investment. Within the US you will qualify as either an investor or a trader.