Hello all, I am relatively new to FOREX trading and have a general question for everyone. I have been doing some research about how income tax is figured in the US for FOREX trading and it seems very complicated and confusing! I do have a regular full-time job and just trade FOREX part-time, so it seems that I wouldn't be able to qualify as a "trader" but that I would simply be an "investor". At the end of the year will I have to pay taxes on my profits at the regular income tax rate or the short-term capital gains tax rate? Any help on this matter would be greatly appreciated.

Thanks,
Dave

Hi Dave,

You should pay the tax definitely even as an investor. You should ask a professional accountant about this. There are different rules in different countries for the forex income. As a person who has a full time job, the money you make through forex is considered as capital gain. So 50% of this money is taxable. However, as I said you should confirm this with a professional accountant who works in USA and in your State.