IC Markets is known for providing outstanding services to active traders, supplying traders with some of the most affordable commissions on the market as well as outstanding execution quality for orders. It also offers great opportunities to earn passive income. We’ll examine the services for copy trading offered through this IC Markets review.
Copy-trading is a type which is popular in social trading. Utilizing social trading platforms, traders and investors of the financial market can copy traders of successful traders from around the globe. The traders take the majority of trading decisions, and investors, based on the subscription, receive the trading signal from these traders which are then copied to the trading account either automatically or manually.
Copy trading addresses a number of problems of newbie traders:
- It allows faster access into the financial markets without wasting a lot of time in learning.
- The income could be comparable to those who have the highest success trading on the platform.
- A relatively low entry requirement for the vast majority of social trading platforms.
Of course, trading in copy has its own drawbacks. The problem is that good results from controlling traders from the past will not mean the same results in the near future. As with any investment product, Copy trades on IC Markets involve the risk of losing.
How can I start using IC Markets copy trading?
IC Markets is a broker within the category of those who do not possess an in-house copy trading platform. That is why the broker collaborated with the most popular social trading platforms ZuluTrade as well as MyFxBook Autotrade. This will explain how to look for brokers that offer signal services and copy trades, as well as review the most important trading terms.
To get started using the ZuluTrade Platform on IC Markets it is necessary to follow some steps as follows:
- Register on ZuluTrade Platform;
- Register an account with IC Markets and wait for your documents to be verified
- Get a signed document by the brokerage, which confirms that you are able the account to be connected to the ZuluTrade software and that you accept the trading terms. The rules for further steps are attached as well.
Forex Taxes and Your Trading Instrument
Once you’ve identified the tax system that applies to your specific situation, it is important to think about the kind of trading instrument used in the transaction, since it will affect the two other tax regimes that we talked about, capital gains and Stamp Duty Reserve Tax.
If you mostly engage in spread betting like, say, spread betting, you will not be required to have to pay capital gains tax, and Stamp Duty Reserve tax on any earnings since you don’t own the actual assets. HMRC is adamant that this kind of trading activity to be a kind of gambling it is required to declare this revenue as winnings from gambling. This means that you’ll have to pay capital gains as well as the Stamp Duty Reserve tax on any profits.
Forex Taxes and Your Tax Status
When you trade shares to earn additional income, and you don’t create a limited liability company or have been registered in the sole trading category you’ll be required to pay taxes on personal income on your gains from forex trading. If trading is your main source of earnings, you’ll have to declare yourself a self-employed worker with HMRC and be subject to taxation under the personal income tax schedule, however. Limited companies that trade as traders will not see gains from trading forex that are taxed as personal earnings. Instead, the limited business is responsible for taxation on profits generated through trading, whereas the trader is liable for personal income tax on any payments made out of those profits.
When is Forex Trading Tax-free in the UK?
As we have already demonstrated, Forex transactions such as forex trading tax UK are tax-free under limited and specified conditions. The first is that you can’t trade in forex for the intention of earning income. In other words, you need to be considered a speculator at the level of HMRC. The second reason is that you must trade only spread bets to keep out taxes on gains from capital or Stamp Duty Reserve taxes.
Simply put, if you earn a living through forex trading or in forex trading to earn additional income, you’ll be taxed on the profits. If you are careful about choosing the type of instrument to trade or signing up with a sole-trader, you might be able to reduce the tax burden by reversing losses.