Depending on where you live, Forex trading can prove to be anything but profitable. Obviously, this is thanks to something called capital gains tax. This particular tax is responsible for any type of profit that’s made through the sale of financial holdings or property, bonds and stocks included.
It is also the main thing that you have to check when you consider moving to another country and being a Forex trader as well. There are a lot of foreign FX brokers that welcome US residents and are located in convenient countries – it would be a shame to skip considering them, especially if you want to be a full-time trader!
Forex Trading vs. Capital Gains Tax
Most traders, when thinking to move abroad, consider countries with no or very low capital gains tax. Such countries allow them to make a profit from trading Forex and pay little to no tax whatsoever.
On the other hand, most of the countries with no capital gains tax come with rather high costs of living. For example, one of the entries on our list would be Switzerland – but it comes with living costs that may not be ideal for the average American or East-European.
However, security and infrastructure must be considered as well. The best country for Forex trading must have high-speed internet and be secure enough in terms of cybersecurity to allow traders to safely trade.
The Best Countries for Forex Trading
Since we got the basics out of the way, let’s take a look at four of the best countries you should consider when it comes to trading Forex.
- Thailand – this country is the most popular when it comes to places where a Forex trader could live comfortably. In fact, it’s the best place for everyone who works online. Thailand comes with no capital gains tax, low living costs, welcoming people, top-notch internet, as well as with a rather crowded expat community. In short, it offers everything you need to settle in!
- Malaysia – here, the same as above applies. The country is more than just friendly towards expats and has a developed Forex trading market
- Panama – the country is known for being friendly to businesses and to Forex traders as well. On top of that, it’s one of the safest countries that’s quite close to both Canada and the USA.
- Malta – this is known as yet another Forex trading heaven; basically, it is the European alternative for Panama. Here, taxes are very low and, thanks to its progressive environment, many people are fluent in English.
The Bottom Line
Well, if you want a Forex trading-friendly country, you can easily choose between moving to Asia, close to the USA, or close to the large mass of the European continent.
Each country above comes with a tax-friendly environment, which is also the main reason why so many businesses and startups get created there every single year. As a Forex trader, this may be helpful when trying to predict the future value of a certain currency!
