For the Forex trader, this means that if they find themselves in a negative net capital situation at the end of any year, they can reduce their overall tax liability by deducting the amount of the net capital loss from any taxes payable on other sources of income. Alternatively, forex traders may opt to file their capital gains or capital losses under section of the tax code. However, there is a capital loss limitation which means that offsetting capital losses cannot exceed total capital gains.

Profitable Forex traders tend to prefer to file under section since this would provide the lower tax liability. On the other hand, Forex traders who end up with net capital losses at the end of the year prefer to file under section Other countries will have different tax laws. Everyone should examine the laws in his country or the country where he is obliged to pay taxes and ultimately abide by these laws. Additionally, as we noted earlier, tax laws vary greatly from country to country and what is okay in one country may be strictly forbidden in another.

All Forex traders should be also aware that your Forex broker is not under any obligation going to file taxes on your behalf. However, your broker should be able to provide you with a statement at the end of the year which reflects your net trading results for that year.

The spreads on AvaTrade are especially competitive. They range from 0. Further, there are no hidden fees. Therefore, traders do not have to pay exorbitant fees to trade. As such, investors can have peace of mind while trading with FP Markets.

This regulation status among other things is what gives FP Markets good standing with investors. Additionally, this company provides a wide variety of assets to trade.

Investors have access to the forex, shares, metals, commodities, indices, cryptocurrency, ETFs and bonds markets. This variety attracts all kinds of investors to FP Markets. Further, FP Markets avails two of the best trading platforms to clients.

Investors get to use the MetaTrader 4 and MetaTrader 5 platforms on FP Markets. These platforms are intuitive and have fast execution times. They are also available on PC, web and mobile. Fees on FP Markets are mainly through spreads and commissions. These fees vary depending on the account type the client signed up for.

As an example, standard account users pay zero commissions but the spreads start from 1. com is yet another forex broker with a reputable track record. The company launched in and has the trust of millions of traders. The company is a registered Futures Commission Merchant and Retail Foreign Exchange Dealer with the CFTC. The company is also a member of the National Futures Association NFA since On top of that, the company is regulated by the FCA, CIMA and the FFAJ.

Traders on Forex. com will have the MetaTrader 4 available. This is a powerful trading platform with fast execution times. Plus, the MetaTrader 4 is available for PC, macOS, iOS and Android. This way, Forex. com accommodates all types of traders. Additionally, Forex. com is one of the TradingView integrated brokers that allows you to use this powerful charting tool when trading with the company. Spreads recorded on Forex. com usually range from 0.

However, the spreads on the platform are variable depending on the account type. The Spreads can go as low as 0. The main market available to clients on Forex. com is the forex market. Traders can trade over 80 currency pairs on this platform. However, clients also have access to the Gold and Silver and the Futures and Futures Options markets.

XM satisfies our criteria for regarding the company as one of the best forex brokers in Europe. The company is regulated by several reputable regulators including CySEC, ASIC and the FSC. This is evidence that the company follows the law and does not engage in shady business.

The trading platforms on XM. com are some of the best platforms in the market. The company provides both MetaTrader 4 and MetaTrader 5 to its clients. These are powerful platforms with fast execution times. Clients can also perform technical analysis on these platforms. Additionally, all clients types of clients are catered for. These platforms are available on PC, macOS, iOS and Android. The spreads on XM are industry standard and competitive. There are three account types that come with different spreads.

For example, the standard account has a spread of 1. However, there is no commission for this account. On XM, clients can trade over 1, trading instruments. These fall under 8 different markets. These include forex, stocks, indices, shares, cryptocurrency, commodities, precious metals and energies.

All kinds of investors are catered for on XM. OANDA is a company with a long history of successful service delivery. This company launched its online brokerage in It is regulated by three of the most reputable regulators in the industry.

These include the FCA in the UK, ASIC in Australia and CFTC in the USA. This shows that OANDA remains committed to following the rule of law. The company provides clients with some of the best trading platforms in the market. Clients can trade using MT4 and MT5 on PC, tablets and mobile. Additionally, clients can use the fxTrade mobile app provided by OANDA. These are all secure and super responsive platforms. Further, OANDA avails a wide range of trading instruments to clients. Traders can trade instruments in the forex, indices, metals, shares, commodities and cryptocurrency.

This means that OANDA accommodates traders of all kinds. OANDA provides variable spreads to clients depending on market movements. Variable spreads are generally cheaper than fixed spreads, especially during high trading volumes. Typical spreads recorded on OANDA 1. Pepperstone is a forex broker dealing in over 1, CFDs. The company provides access to instruments in the forex, shares, indices, ETFs, commodities and currency indices markets.

This variety of trading instruments is a characteristic of the best forex brokers in the market. We will now look at the regulation status of Pepperstone. Fortunately, Pepperstone is a regulated company that plays by the book.

The company has regulations from three top-tier regulators. The company is regulated by the FCA in the UK, BaFin in Germany and ASIC in Australia. Pepperstone also provides competitive spreads to traders. The spreads on the platform for major currency pairs range from 0 pips to 1. There are also commissions charged depending on the trading platform a trader uses.

The trading platforms available to traders on Pepperstone include MT4, MT5 and cTrader. These are all excellent trading platforms with high functionalities. They are also fast in executing trades. IG Markets rounds out our list of the 10 best forex brokers in Europe.

The company is regulated by the FCA in the UK and BaFin in Germany. IG Markets is also under regulation by CFTC and NFA in the US. These are all top-tier regulators showing that IG Markets is legitimate. Brokers under such regulation cannot engage in criminal activities. For the trading platform, IG Markets provides the MetaTrader 4 platform. Additionally, the company provides its in-house-built IG trading platform.

These are both powerful and intuitive platforms for all levels of traders. Even so, IG Markets also provides ProRealTime and L2Dealer for clients who prefer them. The trading spreads on IG Markets are competitively low starting from 0.

However, other charges apply when trading with IG Markets.

Every Forex trader should be aware of the fact that profits gained through Forex trading are taxable and therefore taxes should be filed and paid properly. This is a requirement under the laws of most countries in the world and therefore should not be ignored as sanctions for failing to pay your taxes can be very rigorous. The relevant sections of the tax code in the US that Forex traders need to pay attention to are section and section Traders may opt to abide by either of these sections depending on which one they view as putting them in a more favorable position.

There are several online resources available, such as TurboTax Live , that can provide guidance from your home in Dallas, Fort Worth, Chicago, Oakland or anywhere else in the United States. Under section of the US tax code, a person may offset any payable taxes by any existing net capital losses. For the Forex trader, this means that if they find themselves in a negative net capital situation at the end of any year, they can reduce their overall tax liability by deducting the amount of the net capital loss from any taxes payable on other sources of income.

Alternatively, forex traders may opt to file their capital gains or capital losses under section of the tax code. However, there is a capital loss limitation which means that offsetting capital losses cannot exceed total capital gains.

Profitable Forex traders tend to prefer to file under section since this would provide the lower tax liability. On the other hand, Forex traders who end up with net capital losses at the end of the year prefer to file under section Other countries will have different tax laws.

Everyone should examine the laws in his country or the country where he is obliged to pay taxes and ultimately abide by these laws. Additionally, as we noted earlier, tax laws vary greatly from country to country and what is okay in one country may be strictly forbidden in another.

All Forex traders should be also aware that your Forex broker is not under any obligation going to file taxes on your behalf. However, your broker should be able to provide you with a statement at the end of the year which reflects your net trading results for that year.

The trader is solely responsible for filing his taxes based on what that statement reflects. In addition, tax returns should be filed regardless of whether the trader made a net capital gain or a net capital loss in his trading account.

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Forex traders in the UK are taxed on the basis of their applicable capital gains tax or income tax rates. Learn more this here. Additionally, these brokers provide the best trading platforms and a variety of trading instruments. Digital nomads are the most common type of foreign resident in Malta as the island is a great home base in Europe. Residency permits in Hong Kong are more difficult to obtain than in other places in the world.

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