About Currency Trading Taxes
Currency trades will be taxed at the normal tax rates whether they are short-term or long-term trades. Prepare to pay as much as 15 percent taxes on currency trading deals with information from a financial consultant in this free video on currency trading and investing.
Promoted By Zergnet
Hi, I'm Roger Groh and we're here today to talk about what income taxes you're going to pay on currency trades that you do. Well, each country has different tax rules and frankly I don't know what they are in Ireland or the UK or France or Germany or those other countries. I can only talk about here in the United States. We, it is possible that you could buy a currency and hold it for more than a year. If you did, then that gain or loss would be a long term capital gain or loss and the maximum rate of tax you would pay would be 15%. I don't think though in this environment that you want to wait a year because you don't know if the person on the other end of that trade that is obligated to give you something at a point in time, you don't know if they're going to be here. I mean, think about this year, the biggest currency trader of all was who? Bear Sterns, they went under. Number two is Lehman Brothers, they went under. CitiBank, they went under, just about at least they took money from the government in order to stay afloat, I guess that's close to going under. So you need to pick a reliable partner and think short term that means that all of your trades will probably be taxed at your ordinary tax rate. Whatever you're paying in your paycheck for instance that's probably what your currency trades are going to be taxed at. Both short and long term. That's what your income tax structure's going to look like when you go through currency trading. I'm Roger Groh.