Do I have to pay taxes on Forex trading profits?
It is always wise to check with a tax professional in your particular region but, in general, Forex income falls under capital gains and you must file these on your taxes just as you would for gains from investments in stocks. To make matters more difficult, most U.S.-based brokers do not send you tax documents to you, so you must figure this out for yourself. In the U.K., gains from spread betting are tax-free, but all other Forex gains are taxable. Various countries around the world are tax-free for Forex gains. Some examples of these countries are Malaysia, Singapore, Dubai, and Croatia.