Does anyone live in the US and have a forex broker in a foreign country?


forex
Dave asked:


What are the caveats to this?

Any other details you can share?

Does this complicate filing taxes on gains at all?

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4 Responses to “Does anyone live in the US and have a forex broker in a foreign country?”

  1. Alvie Says:
    May 11th, 2009 at 9:17 am

    You may end up paying taxes twice on your forex income. You’ll have to pay income tax in the country of your residence (USA). And you’ll also have to pay tax on the same forex income in the country where you have your forex account.

    There are some agreements between some countries to avoid double taxation like that. But not every country has an agreement like that with USA. Which means that you might have to pay taxes twice. Or else the IRS will be after you.

  2. mark mc donnell Says:
    May 12th, 2009 at 2:27 am

    I live in the USA and I have one broker based in the UK and one based in Canada. All deposits are in USD and I report gains on my taxes as normal.

    Best Regards
    LEVEL 3 Yahoo Answers Responder
    Mark A. Mc Donnell, Owner
    Monitors 20 Currency Pairs in Real Time and Verifies Your Entries
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  3. Ronald Says:
    May 12th, 2009 at 6:44 pm

    Many of them are unregulated which has its ups and downs… The upside is that you can use all kinds of expert advisors (automatic robots that trade for you unlimited) without being regulated by the NFA:

    Downside is that they aren’t regulated (so they can screw you over if they have a bad reputation).

  4. Daniel Says:
    May 14th, 2009 at 3:53 am

    There is quite a lot of money available in the forex market if you know what your doing.. unfortunately that takes a long time to master.
    I definitely recommend metatrader (mt4) expert advisors (robots that trade forex automatically for you)…

    For info about the many different brands\versions and types check out this blog:

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