ABOUT US, forex capital.

Forex capital


Western heights, 8th fl
P.O box 24578 – 00100
nairobi, kenya tel +254703622390, +254701213798


Real forex bonuses


ABOUT US, forex capital.


ABOUT US, forex capital.


ABOUT US, forex capital.


ABOUT US


BECOME A MASTER TRADER


We bring affordable market access, equal opportunity to progress and total transparency to talented individuals around the globe.


Our innovations are transforming retail traders from over-leveraged casino gamblers to observant market professionals.


ABOUT US, forex capital.


HOW WE EVALUATE


Demo challenge


The demo challenge is the first step of the evaluation process. You need to succeed here to advance into the verification stage. Prove your trading skills and discipline in observing the trading objectives.


Verification


The verification is the second and the last step towards becoming


51C trader


You are becoming a trader of the 51 capital proprietary trading firm. Trade risk-free and receive 50% of your profits. Be consistent and earn even more capital.


HOW IT WORKS


Step 1


Training you to acquire trading skills. Enroll for our training packages which last for 4 weeks. This will help you get started in the forex trading journey.


Step 2


After we have assessed that your trading skills are good, we shall give a funded trading account with the money from us. This contract last for 3 months with money shared 50% to 51 capital and 50% to you the trader.


Step 3


After the initial 3 months are over and you have proved to be an exeptional trader, we shall invite you to join our trading team where you shall get a USD 10,000 account to trade


Training and funding packages


We offer you training so as to make you a professional trader


Come with your brain we come with the capital and let both parties enjoy the profits


WHY US


Great support team


Getting in touch with us is easy. Our professionals customer care team is always there to help you.


Get life time knowledge


We shall empower you with knowledge that will change your life. Whether you are employed or unemployed this is a source of income that will improve your life.


Risk free business


You are not required to provide any capital to start your business. This is a business that will only require your expertise


Feed back from our trained and funded traders


I was jobless and didn’t know what to do. I came across 51 capital and my life has never been the same again.


I am student at university 51 capital forex has helped me earn extra income, I don’t bother my parent anymore


I did fail the first time due to poor risk management and discipline. I took another challenge under guidance of 51cap pro trader and going is now better.Keep up the great work.


The trading challenge was a game changer for me. With zero risk of my capital, i realised i am able to make better trading decisions without emotions being involved. Thank you 51 capital!


I cashed out yesterday, fast and easy. What more can i say! Now my parents can rest easy without worrying about my upkeep ��


Talk to us, we promise to respond soon.


WE ARE HERE FOR YOU


Westlands, raphta rd,
SK suites, D2
P.O box 24578 – 00100
nairobi, kenya


Email info@51capitalforex.Com


Tel +254703622390, +254701213798


NEVER RISK YOUR FUNDS


Trading for 51capitalforex.Com is risk free. You are the trader, and we are the funder. We bring the capital, and cover any trading losses.


TRADE RISK FREE, EARN MASSIVE CASH


51capitalforex.Com fund empowers you the trader to earn money online with ease. We don’t have to restrict regulations and our classes are open to all. Enroll today and enjoy trading with 51 capital.


About us


We are willing to fund the best traders in the world. The 51 capital funds is meant to empower brainy people who may not have capital to start trading. 51 capital are not forex brokers, we a trading fund and we provide funds to those with exceptional trading skills. We are here to provide a risk free trading environment,



Contact info


Western heights, 8th fl
P.O box 24578 – 00100
nairobi, kenya


Daima towers, uganda road
9th floor eldoret, kenya.



FXCM – forex broker rating and review 2021


The FXCM group of companies (FXCM group) is a leading provider of online foreign exchange (forex) trading, CFD trading, spread betting and related services workin since 1999. FXCM is regulated by FCA, ASIC, SFC, CONSOB, bafin and ACP. The company offers trading indices, commodities, treasury, forex on FXCM trading station desktop/web/mobile, FXCM active trader, metatrader4, ninjatrader, zulutrade platforms.


FXCM is committed to offering a diverse suite of innovative trading tools, market news, and education to the trading community. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM's U.K. Subsidiary, forex broker capital markets limited is also a provider of CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform.


FXCM broker was established in 1999. The company’s operation is licensed and regulated by the following major financial regulators: FCA in the united kingdom, ASIC in australia, SFC in hong kong, CONSOB in italy autorité de contrôle prudentiel (ACP) in france and authorized in germany by the bundesanstalt für finanzdienstleistungsaufsicht. The broker offers forex trading on a wide range of trading platforms such as FXCM trading station desktop, FXCM trading station mobile, FXCM active trader, FXCM web trading station and metatrader4 trading station. The minimum deposit is £300 (only applicable to FXCM LTD clients) for a standard account with maximum leverage 30:1 (only applicable to FXCM LTD retail clients), and pip spread on majors approximately ranging from 1.3 to 1.5.


FXCM provides traders with access to numerous services, such as trading analytics, API trading, FXCM apps and programming services.


For the novice traders FXCM offers education to the trading community via trading tutorials, webinars and much more. The broker’s multilingual client support team works on 24/7, five days a week basis and is always ready to solve any customer’s problem fast and effectively. The funds depositing and profit withdrawal are possible through multiple payment systems and are fulfilled in no time.


On the forex capital markets’ profile page at our site you can read FXCM reviews by other traders as well as write your personal FXCM review of your personal experience with the broker in our broker rating. To add a review you need to login to the site.


FXCM trading information


FXCM — latest reviews and comments 2021


FXCM's customer service is atrocious. They don't have an service level agreement so I would not recommend anyone to deposit funds with them. Once received you submit your documents and then the only answer you get is "your documents have been received and being reviewed " when you ask them how long this will take you are told "your documents have been received and will be reviewed " I asked them if they have any brokers they said "your documents have been revieced and will be reviewed" how many weeks, months, years do I have a wait for my documents to be reviewed. I just wonder if I would ever be able to withdraw funds from them. Don't go near them.


Adele 30 january, 2021 reply


I have been trading with a FXCM broker for about 3 years. I haven't seen any problems with this broker all the time, but I trade in the medium term from a week to a month and hold a position. Then either I withdraw the profit or again I open new orders. I use the services of this broker, because of high-quality execution of orders and a good story for analytics.


Predicting the market price movement is less difficult. Thanks to their staff, I can consider better when it comes to enter a trade. Even those are their prediction, but it is much helpful than just to trade by ourselves.


Antony 28 february, 2019 reply


Have been trading with FXCM for several months by now. All in all I'm quite satisfied. I don't get huge profits so far, but I'm still learning the industry.


Serge 9 october, 2018 reply


It's definitely that broker I want to stay with in a long run. Company survived after swiss franc super extreme volatility last year caused by unexpected policy of swiss national bank. The number of FX brokers reported huge losses and bankruptcies but not this one. FXCM survived and keep on working till now. So it is a very good sign of stable company. In case when you have profitable strategy and generate positive returns, this broker is number one I would recommend.


Steve 6 october, 2018 reply


I am trading in forex with FXCM. It offers the particular conditions for active trader. I enjoy this special account! Here I get help from a manager trained in a special way, who provides an individual support presenting the products and tools of the broker, recommending techniques. Moreover he promises to promote my withdrawals and all processing connected with it. Real-time feedback from experts is available here. I can count on privileges as to commissions, which make almost 55 % less compared to the standard amount. Satisfied!


Christos 2 october, 2018 reply


The FXCM demo account is one of the best things about this broker. I've had lots of fun using it. I didn't make any money of course but it's been a blast.


It's well known company and has a huge amount of credibility. Don't read this bullshit about frauds and money withdrawal delays. Never ever within my experience I had problems with delays, off quotes or transferring money to my paypal or bank account. Just think how many people complain on bad service but lost money only because of their greed and fear? Broker works perfectly, trading platform is one of the best you can find among others and it is regulated


Derek_one 15 june, 2018 reply


Do your research! FXCM US and UK divisions have a long history of fines by multiple financial authorities and actions for fraud. They only survived the swiss franc margin call due to a massive hand out. Don't say you havn't been warned.


Mr charisma 4 february, 2019


FXCM has good trading conditions and always was a reliable broker. But now their reputation is more and more crushing down. A lot of problems with a platform and SL hunting made me change this broker to another one. Fortunately, I found really good ECN broker and now my trading are on the next level. If you are looking for a broker that you can trust with your money, I am ready to help.


What broker are you using and which one can we trust?


Would you please let me know the next good broker, you mentioned. I have not traded with FXCM or anybody else but would love to know the best and fair one.



Trade with the no. 1 broker in the US for forex trading*


Trade major US tech stocks this earnings season


Trade the world’s markets


Forex


Indices


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Stocks


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Commodities


Reward yourself with our active trader program



  • Reduced trading costs by up to 15% with cash rebates

  • One-on-one support from an experienced market strategist

  • Reimbursement on bank fees for wire transfers


Forex trading accounts


Trade 300+ markets including FX, cfds indices and stocks on our award-winning trading platforms


Open an account in as little as 5 minutes


Tell us about yourself


Fund your account


Start trading


Your FOREX.Com account gives you access to our full suite of downloadable, web, and mobile apps.


/media/forex/images/global/homepage/allplatforms-latest.Png" alt="forex platforms" width="570" height="340" />


Get 20 free, easy to install eas and custom indicators when you open a metatrader live or demo account.


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* based on active metatrader servers per US broker, january 2021.


Ready to learn about trading?


/media/forex/images/global/homepage/newtrader.Svg" alt="new trader" />


New trader?


Welcome, we’ll show you how forex works and why you should trade it.


/media/forex/images/global/homepage/createplan-latest.Svg" alt="new trader" />


Have some experience?


Let’s create a trading plan that will help you stay on track and meet your goals.


/media/forex/images/global/homepage/strategies-latest.Svg" alt="trading strategies" />


Want to go deep on strategy?


Great, we have guides on specific strategies and how to use them.


Try a demo account


Your form is being processed.


I would like to learn about


Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.


Contracts for difference (cfds) are not available to US residents.


FOREX.Com is a trading name of GAIN capital - FOREX.Com canada limited, 135 US hwy 202/206, bedminster, NJ 07921, USA is a member of the investment industry regulatory organization of canada and member of the canadian investor protection fund. GAIN capital group LLC is a wholly-owned subsidiary of stonex group inc.


/media/forex/images/financial-logos/cpif.Png" alt="canadian investor protection fund" width="115" height="82" />

We transform beginners into profit-pulling , confident, forex traders

Alphaex capital gives you the tools and resources for you to break away from the average (losing) forex trader, and become confident with your own abilities as a forex trader to manage your own money and trade your way.


Here’s what we do


Forex education


We help 1,000s of forex traders every month accelerate their education through our free forex trading course. This forex course takes you from A to Z in learning how to trade forex, as well as supplying you golden nuggets not taught online. We are highly recognised and praised for this course – so if you are learning to trade the markets, this is a strong starting point for you.


Alphaex Capital Forex Trading Education | Alphaex Capital


Forex strategies


We help floods of traders each month with our forex trading strategies. With our forex trading course being a huge foundation to their success and as we transform beginners into profit-pulling forex traders, what follows is our bolt-on strategies that are used for all types of traders, whatever their experience is. If you know the fundamentals of trading, but lack a clear, market-proven, trading strategy – then we have the solution for you.


Alphaex Capital Trading Strategies | Alphaex Capital


Forex trading books


We provide access to one of the world’s best trading books. This book has been devoured by many enthusiasts and has thousands of traders who follow it, successfully. This is one trading book you do not want to skip.


Alphaex Capital Trading Book | Alphaex Capital


Alphaex Capital Trading Strategies | Alphaex Capital


Forex strategies


We help floods of traders each month with our forex trading strategies. With our forex trading course being a huge foundation to their success and as we transform beginners into profit-pulling forex traders, what follows is our bolt-on strategies that are used for all types of traders, whatever their experience is. If you know the fundamentals of trading, but lack a clear, market-proven, trading strategy – then we have the solution for you.


Forex trading books


We provide access to one of the world’s best trading books. This book has been devoured by many enthusiasts and has thousands of traders who follow it, successfully. This is one trading book you do not want to skip.


Alphaex Capital Trading Book | Alphaex Capital


TRUSTED BY 1,000S OF TRADERS TO SUPPORT THEIR FOREX EDUCATION AND DEVELOPMENT.


Alphaex Capital Trustpilot 5 Star Review Trading Strategy Guide 14 | Alphaex Capital


Alphaex Capital Trustpilot 5 Star Review Trading Strategy Guide 13 | Alphaex Capital


Alphaex Capital Trustpilot 5 Star Review Trading Strategy Guide 9 | Alphaex Capital


TAKE THE FIRST STEP TO BECOMING A BETTER TRADER
BY STARTING OUR FREE FOREX COURSE


ALPHAEX CAPITAL
71-75 shelton street,
covent garden,
london,
england,
WC2H 9JQ


RISK DISCLOSURE


Trading forex on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Losses can exceed deposits.


Past performance is not indicative of future results. The performance quoted maybe before charges which will have the effect of reducing illustrated performance.


Please ensure that you fully understand the risks involved. Click here to read the full risk warning.


All website content is published for educational informational purposes only.


ADVERTISING DISCLOSURE
in accordance with FTC guidelines, alphaexcapital.Com has financial relationships with some of the products and services mentioned on this website, and alphaexcapital.Com may be compensated if consumers choose to click these links in our content and ultimately sign up for them. Your support will be greatly appreciated.


Cookie policy


We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. You can learn more about how we use this data by click cookie settings and control what cookies are placed. You can delete and opt-out of the cookies at anytime.


This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.


Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.


These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance


These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.


These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.


Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.



How forex trades are taxed


Find out the basics before you make your first foreign exchange trade


For traders in foreign exchange, or forex, markets, the primary goal is simply to make successful trades and see the forex account grow. In a market where profits and losses can be realized in the blink of an eye, many just want to make money in the short-term without really thinking about the longer-term ramifications. Nevertheless, it usually makes some sense to consider the tax implications of buying and selling forex before making that first trade.


Forex options and futures traders


For tax purposes, forex options and futures contracts are considered IRC section 1256 contracts, which are subject to a 60/40 tax consideration. In other words, 60% of gains or losses are counted as long-term capital gains or losses, and the remaining 40% is counted as short term.  


Key takeaways



  • Aspiring forex traders might want to consider tax implications before getting started.

  • Forex futures and options are 1256 contracts and taxed using the 60/40 rule, with 60% of gains or losses treated as long-term capital gains and 40% as short-term.

  • Spot forex traders are considered "988 traders" and can deduct all of their losses for the year.

  • Currency traders in the spot forex market can choose to be taxed under the same tax rules as regular commodities 1256 contracts or under the special rules of IRC section 988 for currencies.


A 60/40 tax treatment is often favorable for individuals in high income tax brackets. For example, the proceeds of stocks sold within one year of their purchase are considered short-term capital gains and are always taxed at the same rate as the investor's ordinary income, which can be as much as 37%. When trading futures or options, investors are effectively taxed at the maximum long-term capital gains rate, or 20% (on 60% of the gains or losses) and the maximum short-term capital gains rate of 37% (on the other 40%).


For over-the-counter (OTC) investors


Most spot traders are taxed according to IRC section 988 contracts, which are for foreign exchange transactions settled within two days, making them open to treatment as ordinary losses and gains. If you trade spot forex, you will likely be grouped in this category as a "988 trader." if you experience net losses through your year-end trading, being categorized as a "988 trader" is a substantial benefit. As in the 1,256 contract category, you can count all of your losses as "ordinary losses," not just the first $3,000.  


Which contract to choose


Now comes the tricky part: deciding how to file taxes for your situation. While options or futures and OTC are grouped separately, the investor can choose to trade as either 1256 or 988. Individuals must decide which to use by the first day of the calendar year.


IRC 988 contracts are simpler than IRC 1256 contracts. The tax rate remains constant for both gains and losses, which is better when the trader is reporting losses. Notably, 1256 contracts, while more complex, offer 12% more savings for a trader with net gains.  


Most accounting firms use 988 contracts for spot traders and 1256 contracts for futures traders. That's why it's important to talk with your accountant before investing. Once you begin trading, you cannot switch from one to the other.


The rules outlined here apply to U.S. Traders with accounts at U.S. Brokerage firms.


Most traders naturally anticipate net gains, and often elect out of 988 status and into 1256 status. To opt out of a 988 status, you need to make an internal note in your books as well as file the change with your accountant. Complications can intensify if you trade stocks as well as currencies because equity transactions are taxed differently, making it more difficult to select 988 or 1256 contracts.


Keeping track


You can rely on your brokerage statements, but a more accurate and tax-friendly way of keeping track of profit and loss is through your performance record.


This is an IRS-approved formula for record-keeping:



  • Subtract your beginning assets from your end assets (net)

  • Subtract cash deposits (to your accounts) and add withdrawals (from your accounts)

  • Subtract income from interest and add interest paid

  • Add in other trading expenses


The performance record formula will give you a more accurate depiction of your profit/loss ratio and will make year-end filing easier for you and your accountant.


Things to remember


When it comes to forex taxation, there are a few things to keep in mind:



  • Mind the deadline: in most cases, you are required to select a type of tax situation by jan. 1. If you are a new trader, you can make this decision any time before your first trade.

  • Keep good records: it will save you time when tax season approaches. That will give you more time to trade and less time to prepare your taxes.

  • Pay what you owe: some traders try to beat the system and don't pay taxes on their forex trades. Since over-the-counter trading is not registered with the commodities futures trading commission (CFTC), some think they can get away with it. You should know that the IRS will catch up eventually, and the tax avoidance fees will be greater than any taxes you owed.


The bottom line


Whether you are planning on making forex a career path or are simply interested in dabbling in it, taking the time to file correctly can save you hundreds if not thousands in taxes. It's a part of the process that's well worth the time.



We transform beginners into profit-pulling , confident, forex traders


Alphaex capital gives you the tools and resources for you to break away from the average (losing) forex trader, and become confident with your own abilities as a forex trader to manage your own money and trade your way.


Here’s what we do


Forex education


We help 1,000s of forex traders every month accelerate their education through our free forex trading course. This forex course takes you from A to Z in learning how to trade forex, as well as supplying you golden nuggets not taught online. We are highly recognised and praised for this course – so if you are learning to trade the markets, this is a strong starting point for you.


Alphaex Capital Forex Trading Education | Alphaex Capital


Forex strategies


We help floods of traders each month with our forex trading strategies. With our forex trading course being a huge foundation to their success and as we transform beginners into profit-pulling forex traders, what follows is our bolt-on strategies that are used for all types of traders, whatever their experience is. If you know the fundamentals of trading, but lack a clear, market-proven, trading strategy – then we have the solution for you.


Alphaex Capital Trading Strategies | Alphaex Capital


Forex trading books


We provide access to one of the world’s best trading books. This book has been devoured by many enthusiasts and has thousands of traders who follow it, successfully. This is one trading book you do not want to skip.


Alphaex Capital Trading Book | Alphaex Capital


Alphaex Capital Trading Strategies | Alphaex Capital


Forex strategies


We help floods of traders each month with our forex trading strategies. With our forex trading course being a huge foundation to their success and as we transform beginners into profit-pulling forex traders, what follows is our bolt-on strategies that are used for all types of traders, whatever their experience is. If you know the fundamentals of trading, but lack a clear, market-proven, trading strategy – then we have the solution for you.


Forex trading books


We provide access to one of the world’s best trading books. This book has been devoured by many enthusiasts and has thousands of traders who follow it, successfully. This is one trading book you do not want to skip.


Alphaex Capital Trading Book | Alphaex Capital


TRUSTED BY 1,000S OF TRADERS TO SUPPORT THEIR FOREX EDUCATION AND DEVELOPMENT.


Alphaex Capital Trustpilot 5 Star Review Trading Strategy Guide 14 | Alphaex Capital


Alphaex Capital Trustpilot 5 Star Review Trading Strategy Guide 13 | Alphaex Capital


Alphaex Capital Trustpilot 5 Star Review Trading Strategy Guide 9 | Alphaex Capital


TAKE THE FIRST STEP TO BECOMING A BETTER TRADER
BY STARTING OUR FREE FOREX COURSE


ALPHAEX CAPITAL
71-75 shelton street,
covent garden,
london,
england,
WC2H 9JQ


RISK DISCLOSURE


Trading forex on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Losses can exceed deposits.


Past performance is not indicative of future results. The performance quoted maybe before charges which will have the effect of reducing illustrated performance.


Please ensure that you fully understand the risks involved. Click here to read the full risk warning.


All website content is published for educational informational purposes only.


ADVERTISING DISCLOSURE
in accordance with FTC guidelines, alphaexcapital.Com has financial relationships with some of the products and services mentioned on this website, and alphaexcapital.Com may be compensated if consumers choose to click these links in our content and ultimately sign up for them. Your support will be greatly appreciated.


Cookie policy


We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. You can learn more about how we use this data by click cookie settings and control what cookies are placed. You can delete and opt-out of the cookies at anytime.


This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.


Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.


These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance


These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.


These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.


Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.



How forex trades are taxed


Find out the basics before you make your first foreign exchange trade


For traders in foreign exchange, or forex, markets, the primary goal is simply to make successful trades and see the forex account grow. In a market where profits and losses can be realized in the blink of an eye, many just want to make money in the short-term without really thinking about the longer-term ramifications. Nevertheless, it usually makes some sense to consider the tax implications of buying and selling forex before making that first trade.


Forex options and futures traders


For tax purposes, forex options and futures contracts are considered IRC section 1256 contracts, which are subject to a 60/40 tax consideration. In other words, 60% of gains or losses are counted as long-term capital gains or losses, and the remaining 40% is counted as short term.  


Key takeaways



  • Aspiring forex traders might want to consider tax implications before getting started.

  • Forex futures and options are 1256 contracts and taxed using the 60/40 rule, with 60% of gains or losses treated as long-term capital gains and 40% as short-term.

  • Spot forex traders are considered "988 traders" and can deduct all of their losses for the year.

  • Currency traders in the spot forex market can choose to be taxed under the same tax rules as regular commodities 1256 contracts or under the special rules of IRC section 988 for currencies.


A 60/40 tax treatment is often favorable for individuals in high income tax brackets. For example, the proceeds of stocks sold within one year of their purchase are considered short-term capital gains and are always taxed at the same rate as the investor's ordinary income, which can be as much as 37%. When trading futures or options, investors are effectively taxed at the maximum long-term capital gains rate, or 20% (on 60% of the gains or losses) and the maximum short-term capital gains rate of 37% (on the other 40%).


For over-the-counter (OTC) investors


Most spot traders are taxed according to IRC section 988 contracts, which are for foreign exchange transactions settled within two days, making them open to treatment as ordinary losses and gains. If you trade spot forex, you will likely be grouped in this category as a "988 trader." if you experience net losses through your year-end trading, being categorized as a "988 trader" is a substantial benefit. As in the 1,256 contract category, you can count all of your losses as "ordinary losses," not just the first $3,000.  


Which contract to choose


Now comes the tricky part: deciding how to file taxes for your situation. While options or futures and OTC are grouped separately, the investor can choose to trade as either 1256 or 988. Individuals must decide which to use by the first day of the calendar year.


IRC 988 contracts are simpler than IRC 1256 contracts. The tax rate remains constant for both gains and losses, which is better when the trader is reporting losses. Notably, 1256 contracts, while more complex, offer 12% more savings for a trader with net gains.  


Most accounting firms use 988 contracts for spot traders and 1256 contracts for futures traders. That's why it's important to talk with your accountant before investing. Once you begin trading, you cannot switch from one to the other.


The rules outlined here apply to U.S. Traders with accounts at U.S. Brokerage firms.


Most traders naturally anticipate net gains, and often elect out of 988 status and into 1256 status. To opt out of a 988 status, you need to make an internal note in your books as well as file the change with your accountant. Complications can intensify if you trade stocks as well as currencies because equity transactions are taxed differently, making it more difficult to select 988 or 1256 contracts.


Keeping track


You can rely on your brokerage statements, but a more accurate and tax-friendly way of keeping track of profit and loss is through your performance record.


This is an IRS-approved formula for record-keeping:



  • Subtract your beginning assets from your end assets (net)

  • Subtract cash deposits (to your accounts) and add withdrawals (from your accounts)

  • Subtract income from interest and add interest paid

  • Add in other trading expenses


The performance record formula will give you a more accurate depiction of your profit/loss ratio and will make year-end filing easier for you and your accountant.


Things to remember


When it comes to forex taxation, there are a few things to keep in mind:



  • Mind the deadline: in most cases, you are required to select a type of tax situation by jan. 1. If you are a new trader, you can make this decision any time before your first trade.

  • Keep good records: it will save you time when tax season approaches. That will give you more time to trade and less time to prepare your taxes.

  • Pay what you owe: some traders try to beat the system and don't pay taxes on their forex trades. Since over-the-counter trading is not registered with the commodities futures trading commission (CFTC), some think they can get away with it. You should know that the IRS will catch up eventually, and the tax avoidance fees will be greater than any taxes you owed.


The bottom line


Whether you are planning on making forex a career path or are simply interested in dabbling in it, taking the time to file correctly can save you hundreds if not thousands in taxes. It's a part of the process that's well worth the time.



Forex capital


По 28 февраля всем клиентам мы добавим по 30% к каждому зачислению. Это уникальный шанс получить дополнительные средства к своему торговому капиталу абсолютно бесплатно. Условия получения бонуса можно посмотреть здесь.


Участие в конкурсе


E-capital каждую неделю проводит соревнование трейдеров форекс. Участие бесплатно и проводится на учебных счетах. Призовой фонд каждую неделю составляет 6000 рублей.


Учим торговать на форекс


Если вы только знакомитесь с рынком форекс, посмотрите наш бесплатный учебник по рынку форекс, к котором вы найдет ответы на большинство ваших вопросов. Он поможет вам анализировать, правильно торговать и извлекать прибыль.


Forex e-trader pro


E-trader pro это торговый терминал для форекс в который уже включены: котировки форекс, новости, графики, включая более сотни технических индикаторов и полусотни торговых стратегий, возможность заключать сделки в том числе и средствами визуального трейдинга.


Рублёвый форекс


вы можете начать торговать от:от 1000 р.
Совершать сделки объемом от:100 000 ед.
Не платить никаких комиссий брокеруноль
на каждую сделку резервируется:500 р.
За перенос позиции платится:15 рублей
мы увеличиваем ваш торговый капиталдо 200 раз
вы торгуете валютным парами9 пар

Торговая система работает без перерывов 5 дней вы неделю. Торговля начинается в 3 часа ночи понедельника и заканчивается в 24 часа в пятницу.


Мини-форекс


вы можете начать торговать от:$100
совершать сделки объемом от:10 000 ед.
Не платить никаких комиссий брокерунет
на каждую сделку резервируется:$50
за перенос позиции платится:по swap
мы увеличиваем ваш торговый капиталдо 200 раз
вы торгуете валютным парами9 пар

Торговая система работает без перерывов 5 дней вы неделю. Торговля начинается в 3 часа ночи понедельника и заканчивается в 24 часа в пятницу.


Котировки forex


О нас


Дилинговый центр forex E-capital работает с клиентами с 2000 года. Это один из крупнейших и наиболее динамичных развивающихся брокеров в россии. Вот уже более 12 лет компания предоставляет широчайший спектр услуг торговли на форекс частным лицам. С 2005 года в торговле используется торговый терминал forex e-trader. В 2008 к нему добавились терминалы для мобильных телефонов. В команде E-capital работают высококвалифицированные специалисты, в основном бывшие банковские трейдеры.


Мы предоставляем своим клиентом услуги мирового качества и при этом используем индивидуальный подход к каждому трейдеру. Уже несколько тысяч клиентов по достоинству оценили качество нашей работы.


Дилинговый центр E-capital предоставляет доступ обычным пользователям к валютному рынку forex.


Торговля на forex с дилинговым центром это:



  • Уникальная программа для forex e-trader pro 5;

  • Торговые платформы для обычных мобильный телефонов, а также android, iphone, ipad, symbian и т.Д.;

  • Полноценный web-терминал, доступный без скачивания и установки;

  • Расчеты между брокером и трейдером в рублях;

  • Возможность торговать на форекс, начиная с 1000 рублей;

  • Конкурс трейдеров форекс с еженедельным призом в 6 тысяч;

  • Доверительное управление на форекс средствами брокера.




The minimum capital required to start day trading forex


Different currencies


Martin child / getty images


It's easy to start day trading currencies because the foreign exchange (forex) market is one of the most accessible financial markets. Some forex brokers require a minimum initial deposit of only $50 to open an account and some accounts can be opened with an initial deposit of $0.    


And unlike the stock market, for which the securities and exchange commission requires day traders to maintain an account with $25,000 in assets, there is no legal minimum amount required for forex trading.    


But just because you could start with as little as $50 doesn't mean that's the amount you should start with. You may want to consider some scenarios involving the potential risks and rewards of various investment amounts before determining how much money to put in your forex trading account.


Risk management


Day traders shouldn't risk more than 1% of their forex account on a single trade. You should make that a hard and fast rule. That means, if your account contains $1,000, then the most you'll want to risk on a trade is $10. If your account contains $10,000, you shouldn't risk more than $100 per trade.


Even great traders have strings of losses; if you keep the risk on each trade small, a losing streak can't significantly deplete your capital. Risk is determined by the difference between your entry price and the price at which your stop-loss order goes into effect, multiplied by the position size and the pip value.


Illustration about starting day trading forex


Pip values and trading lots


The forex market moves in pips. Let's say the euro-U.S. Dollar (EUR/USD) currency pair is priced at 1.3025. That means the value of one euro, the first currency in the pair, which is known as the base currency, is $1.3025.


For most currency pairs, a pip is 0.0001, which is equivalent to 1/100th of a percent. If the EUR/USD price changes to 1.3026, that's a one pip move. If it changes to 1.3125, that's a 100 pip move. An exception to the pip value "rule" is made for the japanese yen. A pip for currency pairs in which is the yen is the second currency—called the quote currency—is 0.01, which is equivalent to 1 percent.    


Forex pairs trade in units of 1,000, 10,000 or 100,000, called micro, mini, and standard lots.  


When USD is listed second in the pair, as in EUR/USD or AUD/USD (australian dollar-U.S. Dollar), and your account is funded with U.S. Dollars, the value of the pip per type of lot is fixed. If you hold a micro lot of 1,000 units, each pip movement is worth $0.10. If you hold a mini lot of 10,000, then each pip move is $1.   if you hold a standard lot of 100,000, then each pip move is $10. Pip values can vary by price and pair, so knowing the pip value of the pair you're trading is critical in determining position size and risk.


Stop-loss orders


When trading currencies, it's important to enter a stop-loss order in case the value of the base currency goes in the opposite direction of your bet. A simple stop-loss order would be 10 pips below the current price when you expect the price to rise or 10 pips above the current price when you expect the price to fall.


Capital scenarios


$100 in the account


Assume you open an account for $100. You will want to limit your risk on each trade to $1 (1% of $100).


If you place a trade in EUR/USD, buying or selling one micro lot, your stop-loss order must be within 10 pips of your entry price. Since each pip is worth $0.10, if your stop loss were 11 pips away, your risk would be $1.10 (11 x $0.10), which is more risk than you want.


You can see how opening an account with only $100 severely limits how you can trade. Also, if you are risking a very small dollar amount on each trade, by extension you're going to be making only small gains when you bet correctly. To make bigger gains—and possibly derive a reasonable amount of income from your trading activity—you will require more capital.


$500 in the account


Now assume you open an account with $500. You can risk up to $5 per trade and buy multiple lots. For example, you can set a stop loss 10 pips away from your entry price and buy five micro lots and still be within your risk limit (because 10 pips x $0.10 x 5 micro lots = $5 at risk).


Or if you choose to place a stop loss 25 pips away from the entry price, you can buy two micro lots to keep the risk on the trade below 1% of the account. You would buy only two micro lots because 25 pips x $0.10 x 2 micro lots = $5.


Starting with $500 will provide greater trading flexibility and produce more daily income than starting with $100. But most day traders will still be able to make only $5 to $15 per day off this amount with any regularity.


$5,000 in the account


If you start with $5,000, you have even more flexibility and can trade mini lots as well as micro lots. If you buy the EUR/USD at 1.3025 and place a stop loss at 1.3017 (eight pips of risk), you could buy 6 mini lots and 2 micro lots.


Your maximum risk is $50 (1% of $5,000), and you can trade in mini lots because each pip is worth $1 and you've chosen an 8 pip stop-loss. Divide the risk ($50) by (8 pips x $1) to get 6.25 for the number of mini lots you could buy without exceeding your risk. You would break up 6.25 mini lots into 6 mini lots (6 x $1 x 8 pips = $48) and 2 micro lots (2 x $0.10 x 8 pips = $1.60), which puts a total of only $49.60 at risk.


With this amount of capital and the ability to risk $50 on each trade, the income potential moves up, and traders can potentially make $50 to $150 a day, or more, depending on their forex strategy.



Starting out with at least $500 gives you flexibility in how you can trade that an account with only $100 in it does not have. Starting with $5,000 or more is even better because it can help you produce a reasonable amount of income that will compensate you for the time you're spending on trading.





So, let's see, what was the most valuable thing of this article: beginning from the evaluation phase, 51 capital forex fund real- capital forex trading accounts - regardless of your experience level. Profit taking and profit loss waivers included. At forex capital

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