As the local Forex market is the biggest and most developed compared to others, entering it sounds like a tempting and promising opportunity. That results in extreme excitement among local investors and those who want to try their hand at trading. Yet, if you are among them, be sure to learn more about legal issues, taxes, and available brokers before you take any decisive steps.
First of all, you should make sure that this activity is permitted by local laws. Here, we have good news for you, it is fully legal. But, to stay within the boundaries of the legislation, you must turn to a brokerage company, which is regulated by the US authorities ― the CFTC and the NFA. Besides, it is important to check whether the broker selected has a valid license. As a rule, such kind of information is positioned as an advantage and announced right on the homepage of the brokerage service.
Another legal aspect that raises much concern is taxation. So, the scheme 60/40 is applied. In other words, 40% of your returns and losses are classified as short-term taxable figures, and the other 60% ― long-term ones.
How to try Forex Trading USA?
- Find the broker regulated in your country. For example, you can safely register with Forex.com, eToro, or Interactive Brokers. To make a choice among them, compare their commissions, assortment of currency pairs and other assets, passive earning options, research and charting functions, and other terms.
- Try a demo account. Many inexperienced beginners haste to trade for real right away, while there is an opportunity to practice with virtual funds first. Besides, it is another method to make sure the broker platform chosen suits your needs perfectly.
- Test and polish your strategy. If you haven’t got one, take a pause and refer to a trustworthy text or video guide for information. Sure, as long as you have a demo account, it is safer to check the efficiency of your strategy via it.
- When you are confident in your skills and knowledge, switch to a real account. Yet, keep on learning and exploring new strategies, techniques, instruments, and so on.
In sum, in the USA, such investments in currencies are fully legal. So, you can safely make it your side income source or even a major job, but be sure to partner with licensed brokers only and pay all the taxes.