Tuesday, November 24, 2009

Ease of Entry

You do not have to be rich to trade in the Forex market. Everybody
deserves to be able to protect his or her financial future, and the
Forex market makes this possible by offering an extremely low
barrier to entry. In fact, you can open a Forex account with as little
as $300.
Profit Potential
It doesn’t matter if the value of the U.S. dollar is going up or down.
You can make money in the Forex market. If you think its value is
going up, you simply buy the U.S. dollar and make money all the
way up. If you think its value is going down, you simply sell the U.S.
dollar and make money all the way down.
Tax Advantages
When you invest in most financial markets, you must pay short-term
capital gains tax if you take your profits within one year of purchasing
a security. If you hold the security for more than one year
before taking your profits, you must pay long-term capital gains tax.
Currently, short-term capital gains are taxed at your current tax rate,
and long-term capital gains are taxed at only 15 percent. Obviously,
it is much better to pay less in taxes. In the Forex market—much to
investors’ delight—it doesn’t matter if you take your profits one
minute after you enter a trade or one month after you enter a trade.
Sixty percent of your profits are taxed at long-term capital gains
rates, while only 40 percent of your profits are taxed at short-term
capital gains rates. That means you keep more of your profits in
your pockets.
For example, imagine you made $10,000 on a six-month trade
in the stock market and that you also made $10,000 on a six-month
trade in the Forex market. Both trades occurred in taxable accounts,
so you owe taxes on both. Assume you are in the 33 percent tax
bracket.

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