Best forex brokers 2017 / eToro profit taxes

eToro profit taxes

In trading, customers of a broker must take care not only about the price movements and trading strategies — the taxation of profits plays a major role, and by far not all traders are familiar with the applicable rules. On the gains on the trade must be paid under certain circumstances tax follow to inform you of the flat tax.

The most important thing about the taxes on profits at eToro:

  • The profits realized on the Social Trading, subject to withholding tax
  • The withholding tax applies a flat rate for all investment income
  • The tax rate is 25 percent
  • eToro reserves the tax on automatically
  • Trader care eigeständig to the taxation

eToro Social Trading

1) How does the eToro Social Trading?

At eToro is a global provider of Social Trading, which counts more than 3.5 million people from 152 countries to own trading community. But what is Social Trading at all? This principle is an innovative way to jointly operate a network trade and to benefit from the experience of all other community members.

For every trader See the trading activities of all other community members with eToro and detailed performance over their their portfolio and their gains and losses inform. In this way everyone can learn about innovative trading strategies, current trends and trade concepts. Are some traders particularly interesting, they can be tracked with one click. The persecuted are included in the portfolio of followers and this sees its future trading activity in real time. If the followers convinced of the qualities of a trader, he can copy it and from then on, everything that the trader does happen also in the account of the copier.

In this way, even inexperienced investors and all those who do not have time to deal with price trends, given the opportunity to make profits by trading specifically with comparatively little effort.Those who make their trading strategies available, benefit in its own way. For each fax, the signal transmitter will receive a bonus and multiply their winnings made anyway.

Conclusion: At eToro Social Trading it comes to public office to participate in the trading and mutually benefit from the advantages of this trading way. Inexperienced investors can trade strategies experienced trader transferred to their own merchant account with a mouse click and save yourself in this way the price and market analysis. The professionals receive a premium for each copier and also take their advantage of this concept.

2.) What is the situation with the commercial offer and conditions?

eToro 2.) What is the situation with the commercial offer and conditions?

eToro has its own headquarters in Cyprus and regulated by the Financial Market Authority CySEC. Thus, the question is not necessary according to whether eToro fraud or serious is because the CySEC operates according to strict and uniform EU-wide directive on markets in financial instruments (MiFID). In addition to the headquarters eToro has 35 subsidiaries worldwide and is thus additionally regulated by the financial authorities of these countries.Among them is the BaFin found that this country has oversight.

The Social Trading Provider provides its customers with currency pairs and CFDs on stocks, indices and commodities available. EToro is acting as a market maker and calculated order fees in the form of fixed spreads. These are the currency pair EUR / USD for example, in three pips. The trade is eToro an in-house web-based trading application available, mainly through the eToro Professional Charts distinguished.

The application is specially tailored to the requirements of the Social Trading and enable even novice traders an uncomplicated entry. 
Who among trading with eToro would like to meet realistic conditions and wants to test all functions of the trading platform in advance, can the free eToro demo account use, which is for an indefinite time.

Conclusion: eToro acts as market maker and provides trading forex and CFDs. The headquarters, the company in Cyprus, however, is still located worldwide in 35 countries and is thus regulated by numerous financial regulators. The trading platform is web-based, supports all necessary functions for the Social Trading and is characterized by professional charts.

3.) Everything about the withholding tax on investment income

Gains arising from transactions with CFDs or binary options are capital gains. They are therefore subject to tax. There are other types of savings and overall be referred to as such gains from investments. These include, for example, interest rates for savings accounts, payments from life insurance or stock dividends. Previously, the different capital gains types were taxed at different rates, but in 2009 the flat tax was introduced. This should allow greater transparency and took all kinds of investment income tax at a rate of 25 per cent flat rate. Added to this is the solidarity surcharge and possibly also the church tax.

The gains and losses of the same kind of savings may be offset against each other and only the difference is subject to tax. If in a year ago is a negative amount, this can be transferred in the coming year. In the flat tax, an annual allowance of 801 euros applies and under certain circumstances an exemption application must be submitted to a broker, so that allowance can also be taken to complete.

Conclusion: The withholding tax applies to all types of investment income and in Germany is currently a flat rate 25 percent plus solidarity surcharge.. It is an annual tax-free allowance of 801 euros and profits and losses can be offset against each other when it comes to the same kind of savings.

4.) How is handled the taxation at eToro?

eToro 4.) How is handled the taxation at eToro?

For brokers based in Germany, the company leads the taxes from the same for the customer. This has advantages and disadvantages alike. On the one hand, the trader no longer has to worry about the control. On the other hand then there is no money to trade once the free limits have been exceeded and the revenues are taxable. TheeToro Europe Ltd. Headquartered in Cyprus, thus leading the flat tax is not itself. The needs of the customer do at the end of the year itself.For this, the profit on the tax return must be specified as a capital gain.

It may be that the tax office requires an additional payment
. Where the taxable person but paid to other revenue too many taxes, for example, in the income tax, the tax to be deducted from the refund. The flat tax is, as any other taxes also a sensitive issue, and whoever wants to be on the safe side always does, consult a tax expert, which is recommended for any trader.

Conclusion: As the taxation is handled by a broker depends on where is the head office of the broker. Resident in Germany Broker the flat tax result from direct and save the customer paying taxes. Sits Broker contrast abroad, the taxation is left to the traders. It’s the same with eToro.Here, the responsibility remains with the customer of the broker.

5.) Our conclusion

Since eToro gains on investments can be achieved, these are gains as capital gains and are subject to the flat tax in this country. The amount of tax is 25 percent and added a solidarity surcharge and possibly church tax. The gains and losses in trading can be utilized and there are at eToro only on profits taxes, which remain at the end. There is a resident abroad Broker eToro, the taxes are not automatically withheld and the customer must independently worry about paying taxes. It is advisable to seek in this regard advice on taxation and always be on the safe side.
In trading, customers of a broker must take care not only about the price movements and trading strategies - the taxation of profits plays a major role, and by far not all traders are familiar with the applicable rules. On the gains on the trade must be paid under certain…
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One comment

  1. I am an Indian national working in United Arab emirates (UAE). I wish to invest in etoro and would like to know the tax amount applicable on profits from trading.

    As I understand from the above explanation that if I make US$100, then I need to pay a tax of US$25 + other levies and I will be able to withdraw only US$75 less the other levies as US$25 will be withholding by etoro against the tax liability. Can someone clarify this point. Thank you

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