Thread: Beginner Questions

I'm new to Forex and have been doing some demo trading for approximately a month. I was wondering how Forex gains and losses are taxed. Are they taxed as short term capital gains or are they taxed as attention (gains and losses??) ?
Also, my FX demo broker has been XpressTrade. Anyone have any experience with them?
Thanks.

Yeah Green would be the best out there for trader tax info. If you will need an accountant and attorney, they are great for this too.

I have never heard of Xpresstrade. What's been your experience with them, simply out of curiosity?

Although, I used multiple brokers service because of my demo clinic, but I don't have any experience with this broker! Actually, I used my one year properly for studying Forex trading! Then I started my reside with micro then overall live account.

Originally Posted by ;

I am new to Forex and have been doing some demonion trading for approximately a month. I had been wondering how Forex gains and losses are taxed. Are they taxed as short term capital gains or so are they taxed as attention (losses and gains??) ? Additionally, my forex demonion broker has been XpressTrade. Anyone have any experience with them? Thanks.

No experience with the broker you have. First time known this title, actually using demo account I think that it's impossible to judge a broker, minimum you have to some micro account to see the functionality the way that it works.

Originally Posted by ;

quote No expertise with the broker you've got. First time known this title, actually by using demo account I think its impossible to judge a broker, minimal you've got to a micro account to observe the performance how it functions.

Demo account generally is much more appropriate to ensure the basic fundamental market expertise that's very supportive to keep a live account in a proper manner, but not appropriate to be sure brokers performance but shortly you can understand how the broker functions.

Various countries have different laws. For example, in many places just the profits have been taxed and nobody would tax people for the losses.

Originally Posted by ;

Retail FX traders fall under Section 988, which covers short-term foreign exchange contracts like place FX trades. Section 988 taxes FX gains and losses like ordinary income, which is in a higher rate compared to capital gains tax for the majority of earners. An advantage of Section 988 treatment is that any amount of ordinary income could be deducted as a loss, at which only $3,000 in capital gains losses could be deducted. Section 988 gains or losses are reported on Form 6781.

You'll be able to choose out of Section 988 treatment and use the 1256 remedy to probably get reduced tax rates though. And you might carry more losses to gains if you had income for the entire year.

Originally Posted by ;

quote Demo account generally is more appropriate to make sure the basic fundamental market experience which is very supportive to keep a stay account in the right way, but not appropriate to make certain brokers functionality but shortly you can understand the way the broker works.

Before large investments we generally start a demo account in a broker to see the performance the way that it works. But I have observed, after large investments brokers mindset changes occasionally that's unavailable in micro accounts.

Hello Everyone,

I'd love to understand some advice please. When I've 100k, I don't want to do day trading. I kind of want to do Monthly or yearly trading because I don't have much time. I'd love to own stocks in the next companies. I've been performing research and following these firms below for the previous five years, without investing, and reading up alot about those companies. So this is what I'd love to invest.

1. PG - 20,000 Worth of shares
2. JNJ - 15,000 Worth of Stocks
3. Merck - 10,000 worth of shares
4. Verizon - 10,000 worth of shares
5. Pepsi co - 20,000 worth of shares
6. Mylan stock - 5,000 worth of shares
7. BP Stock - 5,000 worth of shares

I want diversify and ONLY looking to JUST spend and maintain researching in such firms and observing such firms. I DO NOT want to become rich fast thing. I would like to spend, keep your eye on this market, rather than trade daily but maybe once a month or once in few months, but keep building my portfolio if I keep getting the profits.


Whats your input men? Please advice.