Best Countries for Forex Trading?

One of the clear advantages of making good enough at Forex trading is that you can do it full time because it can be done from anyplace you have an internet connection. If you’re a Forex trader, you have no boss, no need to travel in terrifying traffic to the job, and you are not bound to a particular area. You can go everywhere, so why not pick the best place?

Usually what’s best depends a lot on the person. But, there are some common considerations you should probably make as an FX trader, that we can follow to make a few suggestions.

Depending on where you live, Forex trading can prove to be anything but successful. This is thanks to something called capital gains tax. This special tax is liable 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!

One of the most traded markets in the world is the forex trading market. The many advantages of being a forex trader include working from anywhere in the world and working at your own will. All you need is a laptop and a good internet connection and you’re all set to make money.

Since you can be anywhere in the world, a common question that is frequently asked is which are the best countries for a forex trader. When you earn your living as a trader, you have to consider taxes and all the issues around them. After all, you don’t want to spend all your hard-earned money on taxes.

Things to Consider Before Moving to a Country

Forex trading is an attractive option to earn a living but before you move to a new country, there are some things you should consider.

Taxes

This is perhaps one of the most important things when it comes to relocating to a new country as a forex trader. You must consider a country with no or little capital gains taxes. These are the countries where you can make a lot of money through trading but don’t have to pay any or very little tax on that income.

Is It Expensive?

You may move to a tax-free country but what if you had to spend all that money on living expenses? Before moving to a new country, you should do proper research on how expensive it can be to live there. There are many forums and groups online where you can meet expatriates living in any country. It is a good idea to talk to people already living there to determine how much money you need to save up before moving there.

Quality of Life

You may come across a country with no taxes and with very cheap living expenses. However, if it doesn’t offer a good quality of life, it can be difficult to move there.  You should consider the infrastructure of the country while researching your living options. This includes schools, the housing market, public transportation, and more. Additionally, you might also research if you’re moving to a country where they speak your native language. You will need to choose a country with high-speed stable internet connections. It should also be secure from cybercrime attacks so that you can trade without worrying about online attacks. Now that you know what to look for, here are the six best countries for a forex 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.

• Singapore

Singapore is another Asian country that offers great incentives to forex traders everywhere in the world. The Monetary Authority of Singapore (MAS) regulates the country’s financial sector. All brokers must get a license from MAS before trading. While Singapore is a haven for traders, it is very strict in its rules when it comes to preventing any financial malpractices. This makes trading in the country a safe and pleasant experience. There is no dearth of licensed brokers to choose from. There are no capital gains taxes in Singapore as the country works hard to make itself attractive to foreign capital. IRAS has a great tax calculator to estimate your taxes. While it is an Asian country, most people speak English. The country also boasts a high quality of life for expatriates and tourists. This country has booming infrastructure and technology so you don’t have to worry about a poor internet connection while you’re there. The well-regulated and highly secure financial environment makes this country one of the best places in the world for a forex trader.

• Thailand

Thailand is the country that is the most popular when it comes to places where a Forex trader could live comfortably. 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 ex-pat community. In short, it offers everything you need to settle in!

• Belgium

If you’re looking to move to Europe, Belgium is a great option for forex traders. The euro is one of the strongest currencies in the world which makes trading against weaker currencies easier. Belgium is well-placed geographically and is close to other financially rich countries such as France, Germany, Switzerland, and the Netherlands. Capital gains taxes are not completely free in Belgium but they are free in most cases. If capital gains are taxable is determined by whether they contribute to a business or a personal gain. Income earned from capital gains by an individual is non-taxable. Located in Western Europe, Belgium is a culturally rich place to live with a diverse population. It is slightly more expensive than Eastern European countries but living here is still affordable.

The country has three official languages namely French, Dutch and German, so native English speakers will have to work hard on learning a new language.

• The Cayman Islands

The Cayman Islands are a well-known spot attractive to many forex traders. The islands are well regulated making them an easy place to trade forex from. The Cayman Islands Monetary Authority (CIMA) regulates the financial sector of the islands. The regulations set by CIMA make trading secure and protect traders from scammers. The country has a broker-free policy which gives traders access to more opportunities.

No capital gains taxes are levied on any transactions making it a haven for forex traders. The country also doesn’t impose any direct citizens on its residents. The government makes it clear it doesn’t charge any payroll taxes, capital gains taxes, property taxes, and withholding tax. The pleasant weather and a bustling social life make it easy to settle in the Cayman Islands. These islands have a large number of expatriates making it easier to move if you don’t already know someone living there. These islands are English speaking and offer a good quality of life without a high price.

• Malaysia 

There has been a growing interest in trade in Malaysia. Malaysia’s central bank, The Bank Negara Malaysia manages the country’s local currency called the Ringgit. The Securities Commission Malaysia regulates the capital market.

Forex trading in Malaysia is legal. However, you must only use brokers and platforms that are licensed and legally registered. The tax system in Malaysia is different from most countries. Instead of a residential tax, they use a territorial tax system. This means any income generated outside of Malaysia is not taxable. Malaysia does not have capital gains taxes on equities. It also abolished this tax on real estate in 2007. Malaysia has a high population of expatriates. Most people understand and speak English well. The country offers a comfortable life without a high price making it a very attractive option for all forex traders. Learn more about forex market hours in Malaysia.

• Panama

the country is known for being friendly to businesses and 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.

• Switzerland

is popular all over the world for its beautiful mountains and scenery. But one thing it’s also known for is its centers of banking. Each canton in Switzerland has its tax system apart from the federal tax system. Thus, you must decide which canton you want to live in before you move to the country. Generally, income earned from capital gains by Swiss residents is exempt from taxes if this income was earned by selling private assets.

Switzerland has a lump sum tax program for all expatriates. Anyone living in the country for non-professional reasons and who is managing their private wealth can save a lot of money while living in Switzerland. You are asked to declare all your assets and they determine the taxes you are required to pay. Remember that depending on the region you choose to live in, the cost of living can be high in Switzerland. But it also has one of the highest standards of living all over the world. The country has a great work-life balance and free education opportunities. The Swiss are very environmentally conscious and the country boasts beautiful landscapes with clean air. While most people don’t have English as their native language, English is quite widely spoken all over the country.

• UAE

UAE is another great country that allows numerous opportunities for forex traders. It is one of the important financial sectors in the Middle East. Making money through trading is safe and legal here.

While many countries put restrictions on how much money you can earn from forex trading, UAE doesn’t do that. There is no capital gains tax in this country making it an ideal option for all forex traders. Remember that every broker must meet the requirements set by the Securities and Commodities Authority and Central Bank of the United Arab Emirates before trading. The country has pleasant weather for most of the year and a large expatriate population concentrated in cities like Dubai.

• 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 why so many businesses and startups get created there every year. As a Forex trader, this may be helpful when trying to predict the future value of a certain currency!

If you want to move to a different country, it is good to research the country well in advance. You should be concerned about taxes and the quality of life and how expensive that country is. Some countries have tax-friendly environments but living there can be expensive. While other countries can be cheaper but have poor infrastructure. You need to find a country that is well balanced and suits your needs. There has never been a better time to trade ever before. If you are also looking for an easy way to trade, you can do so with Easy Trade.