Feel free to ask the ForexMinute team any financial market related or other important questions. One of our experts will answer your inquiries in a timely manner.
Some of the recent questions:
Q. I live in the UK. Do I need to pay taxes if I trade forex through an offshore broker? A.
First, we suggest that you consult a tax professional in your country. He may be able to suggest how to minimize the taxes if you are liable for any in such situation. Many countries have recognize a status of professional full time investor or trader, which may have a different tax rate. Then of course there are trust and other corporate entities that may be used as well. Second, for as long as the funds are in your trading account with the broker they are not subject to any tax. Only when the funds are transferred to your bank account in the country where you are a resident for taxation purposes, only then the money could be subject to tax. The best would be to consult the local tax specialist if you are not sure what to do.
Q. What is the difference between a broker and a market maker? A.
The broker “brokers” the deal – meaning that he would offer you the best quotes he has at the time of the deal from one of the few providers and then will offload the deal to his liquidity provider. Thus, effectively you are trading with the liquidity provider who backs up the broker in this case. The market maker on the contrary usually has enough liquidity himself and does not offload his customers’ trades to anybody. The market maker himself detemines the quotes depending on the market conditions.