I think forex trading changed my life in many aspects. I started trading when I was a freshman in college in the Sydney University. I started trading because in the stock market crashed and my parents lost a lot of money so I wanted to figure it out Here is My Forex story: I am a Forex trader with about six years experience! I started Forex trading because I read about it and found out it had huge investment potentials; however, I did not fully understand the risk involved nor the dynamics of the Forex market. With very basic training, I jumped into live trading and the Forex market did not spare me at all Investors realised that currency variation was a way to make money, and Forex trading was born. In the first currency pairs were traded. Initially, currency trading was restricted to professionals, but the internet helped to open the market to millions of amateur traders. Forex is currently the most active liquid market in the world
Forex Success Stories: 10 of The Most Successful Forex Traders
What is a tax haven? A tax haven is a country or place with very little or no tax liability in an economically and politically stable environment. Financial secrecy is strictly protected by the law, as tax havens typically do not disclose such information.
In general, residency for foreign individuals is not required to enjoy the benefit of tax policies, as is the case with business presence for foreign business entities. Intranational regions may also be regarded as tax havens if they have distinctive tax policies. For instance, the state of Alaska, Florida, Nevada, New Hampshire, story behind forex trading, South Dakota, Tennessee, Texas, Washington, and Wyoming can be regarded as tax havens because they do not impose the state income tax.
Tax haven countries benefit by drawing capital to their banks, financial institutions, and other investment vehicles, which can be used to build the financial sector. On the other hand, individuals or businesses benefit from low or no taxes imposed on their incomes.
For most countries, income taxes heavily contribute to government revenue. In order to make up the loss of income tax revenue, story behind forex trading, tax haven governments usually charge high customs and import duties, which are some forms of indirect taxes. Another way is to charge a fee for newly incorporated business entities which will have to pay a renewal fee on yearly basis.
The Organization of Economic Cooperation and Development OECD and the U. Government Accountability Office are two regulatory bodies that monitor tax haven countries. Instory behind forex trading, the OECD gave a number of factors to classify a country as a tax haven, including:. The act also changed the US tax system from global to territorial. Under the territorial tax system, the US does not impose taxes on story behind forex trading earned overseas but retains taxation on high return foreign profits.
In general, business entities may exploit the benefit of low or no taxes offered in tax haven countries, but it is very important to monitor and report foreign income in accordance with the US tax law, Generally Accepted Accounting Principles GAAPand International Financial Reporting Standards IFRS.
See Also: The Two Major US Regulatory Agencies You Should Know. The Foreign Account Tax Compliance Act FATCA regulates the reporting of foreign income by US citizens and non-US citizens. There may be potential exemptions and foreign tax credits for any foreign investments, but it story behind forex trading imperative for each individual taxpayer to consult with a professional tax advisor beforehand.
All income earned by US individuals and business entities is subject to taxation. Offshore investment can lead to violation of tax regulation and in turn illegal activities, story behind forex trading.
Foreign governments story behind forex trading to story behind forex trading tax haven countries into disclosing information of offshore investment accounts in order to maximize tax revenues. However, story behind forex trading, due to financial burdens, regulatory oversight is not always a priority. There are some existing programs to increase the story behind forex trading of offshore investment reporting, story behind forex trading, such as the Automatic Exchange of Financial Information, overseen by OECD.
With this program, participating countries automatically send tax-related banking information of story behind forex trading depositors, which will be used in the facilitation of taxes on income, earnings, interests, dividends, story behind forex trading, and royalties.
See Also: Comparing the US and Offshore Forex Brokers. The Caribbean is famous not only for its tourism but also for its status as a tax haven. Many countries and territories in the area are pure tax havens, meaning that they do not impose any tax at all. This way, they could be less dependent on foreign countries to maintain their own economies.
Below is the list of tax havens in the Caribbean. The Cayman Islands is a pure tax haven as there is no income tax, no corporate tax, no estate or inheritance tax, and no gift tax or capital gains tax. The country is one of the five largest offshore financial centers worldwide and has very strict laws to protect banking privacy. Offshore companies are not taxed on income earned abroad, not required to submit financial reports to the authority, and not required to pay stamp duty on any asset transfer, story behind forex trading.
There is also no tax liability for international business companies IBCs. Incorporating a company is a very simple process and can take as little as a day to complete.
See also: Forex Brokers in the Cayman Islands. The Republic of Panama is a very secure pure tax haven. There is no income tax, no corporate tax, and no local tax. Company incorporation is open to story behind forex trading nationality and offshore companies are allowed to operate their business within and outside of Panama's territory. Panama has very strict laws to protect the banking secrecy of the account holders. In addition, Panama has no tax treaties with other countries and no exchange control laws.
Like Panama, the Bahamas is a pure tax haven. There are no income taxes on offshore companies and individual offshore account holders. Also, residents are not required to pay income tax regardless of where they earn their income. The Bahamas is one of the popular choices for the US and European countries resident especially after the country passed the law that enabled the incorporation of offshores companies and IBCs in The Bahamas is the first Caribbean country to adopt strict banking secrecy laws.
Disclosure of information on offshore bank account holders can take place only if ordered by the Bahamian Supreme Court. Turks and Caicos is a British Overseas Territory located southeast of the Bahamas. Technically, the Turks and Caicos are located in the Atlantic Ocean but widely considered as part of the Caribbean. The British Virgin Islands is a pure haven British Overseas Territory. Offshore bank accounts are not taxable, and the privacy of account holders has protected thanks to the lack of tax treaties with other countries.
Offshore companies and the BVI IBCs are not taxed on profits or capital gains earned from outside of the BVI's jurisdiction. In addition, the absence of exchange controls makes it easier and more secure to transfer funds for trading purposes.
Dominica, officially the Commonwealth of Dominica, is a pure tax haven. People of any nationality can incorporate a company in Dominica, story behind forex trading. Offshore companies are not required to pay stamp duty on the transfer of assets.
The identities of offshore company owners and offshore bank account holders are protected by Dominica's asset protection and financial privacy laws. The island of Nevis and Saint Kitts constitute story behind forex trading Federation of Saint Kitts and Nevis. Company incorporation is fairly easy as it only requires one director and one shareholder, who can be the same person.
Nevis is a pure tax haven. There is no income tax earned outside of Nevis, no withholding tax, no capital gain tax, and no estate tax. Moreover, there are no exchange controls and no taxation treaties with any country, story behind forex trading. Anguilla is another Britain Overseas Territory on this list. Like the previous two, Anguilla is a pure tax haven.
Individuals or corporations do not have to pay income taxes, estate taxes, or capital gains taxes. Privacy is protected by the Offshore Banking Act of which states that all bank employees and agents are prohibited from disclosing any financial information without the express consent of the account holders.
Offshore companies are free from paying stamp duty, and exchange controls do not exist in Anguilla. Often referred to as the Switzerland of Central America, Costa Rica is a tax-friendly country that has been attracting many large corporations through tax incentives.
Costa Rica offers exemptions from any tax to many companies for eight years. For companies that have to pay taxes, do so with low rates and usually are not required to pay taxes on interest, story behind forex trading, capital gains, or dividend income. Like other tax havens on the list, Costa Rica is committed to protecting the privacy of offshore banking.
Transfer of assets in unlimited amounts from and to Costa Rica can be done without having to disclose the source. Formerly known as British Honduras untilBelize was story behind forex trading last British colony in the Americas. Like other Caribbean countries, Belize offers offshore financial services such as offshore banking, incorporation of offshore companies, the formation of trusts or foundations, etc.
Offshore companies and trusts are exempt from paying income tax earned abroad and from paying stamp duty. Offshore bank accounts are not liable to interest tax, repatriation tax, or capital gains tax. Privacy is strictly maintained, disclosure of information can only be ordered by the court for a criminal investigation purpose.
There are no exchange controls and no tax treaties with other countries. See Also: List of Forex Brokers Regulated in Belize. Though it is not a pure tax haven, Barbados is an attractive place to incorporate offshore companies due to its extremely low tax.
Offshore companies are not subject to import duty, which story behind forex trading help save the companies' budget when importing machinery or business equipment. In addition, there is no withholding tax or capital gains tax. However, Barbados has double taxation treaties with Canada and the US, and a number of other countries. Outside of the Caribbean, certain countries can be considered tax-free, meaning that residents are not subject to income tax, dividend tax, or capital gains tax.
Below is the list of other tax haven countries. The United Arab Emirates does not charge personal income. For business, the UAE levies a corporate tax on oil companies and foreign banks only. A residency permit can be obtained by setting up a company in one of the UAE's free trade areas. Offshore companies can also be established in Ajman, Dubai, and Ras Al Khaimah.
Foreign individuals are eligible to own real estate in Dubai's projects. See Also: Forex Brokers in the United Arab Emirates. Brunei Darussalam is a tax—free country, story behind forex trading, located in the northern part of Borneo, Southeast Asia. Brunei has no income tax and no exchange controls. The country offers excellent banking options in an economically and politically stable environment. Monaco is considered a tax haven country due to its relatively lax tax policies and laws.
Residents are not subject to income tax. People of any nationality can apply to be a resident should they plan to reside in Monaco for story behind forex trading than three months in a year. Other benefits for residents are the absence of capital gains tax, net wealth tax, and property tax.
What Is Forex? SIMPLIFIED
, time: 3:36Success Story Behind Starting A Forex Broker - Arif Alexander Ahmad | Desire To Trade
4. · The secret behind this particular success story is Stanley’s philosophy which has helped him reach the top of his game when it comes to trading currencies on the foreign exchange market. The philosophy, in Stanley’s own words, is “preserving capital and chasing profits on good trades aggressively.” 4. 6. · The retail forex broker can lay-off order imbalances to an institutional forex system run by large banks. So the retail forex broker allows small positions but ties-in to the largest forex market Investors realised that currency variation was a way to make money, and Forex trading was born. In the first currency pairs were traded. Initially, currency trading was restricted to professionals, but the internet helped to open the market to millions of amateur traders. Forex is currently the most active liquid market in the world
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