Tax on forex trading depends on where you live and on the product you trade. This guide covers the questions to ask and the records to keep. It is general information, not tax advice.
Why it varies
- By country: some countries tax trading profits as income, others as capital gains, and some treat regular trading as a business.
- By product: spot forex, CFDs, spread bets, options and futures can each be treated differently in the same country.
- By your situation: whether trading is occasional or your main activity, and your other income, can change the result.
Records to keep
- Trade history statements from your broker for the whole tax year.
- Dates and amounts of every deposit and withdrawal.
- Fees, commissions, swaps and currency conversion costs.
- Confirmation of which legal entity holds your account.
- The exchange rates or method you used to convert profits and losses into your tax currency.
Questions to ask a qualified tax adviser
- Are my forex or CFD gains treated as income or capital gains?
- Can I deduct trading losses, and can I carry them forward?
- How do I report gains from a broker based in another country?
- Do I need to report foreign accounts or balances?
- Are fees and swaps deductible?
Not tax advice
Rules change and depend on your circumstances. Speak to a qualified tax professional in your country before you file.
General information for education only, not financial advice. Trading forex and CFDs carries a high risk of loss. Read the disclaimer.