Canadian traders, u guys are seriously lucky with taxes

I have a friend who is trading with Oanada Canada. He said that he only pays tax at his personal rate on only 50 percent of all capital gain...what is this BS with us here in USA. And they have the better health care too!

Yeah that maybe true for the time being BUT we Canadians cannot trade with any brokers anywhere in the world (not even from UK regulated by FSA who to be honest is a LOT more competent regulatory body than our joke of IIROC) unless they have offices in Canada.

So basically we are stuck with only few choices.

I mostly trade from a Roth IRA account - all gains are tax-free. Not spot, though.

Capital gain tax in u.s is 20%, which is not that bad in my opinion considering flexibilities and security.

Depending on where you live in Canada the marginal tax rate can rise pretty quickly to 50%... so even if you pay half of it you still pay 25% in taxes on revenues from trading. Also, if you make more than a 100 trades in a fiscal year the profit you might make are not considered revenues from investing or a capital gain but plain revenues and as such they are taxable at your full marginal rate even if they are earned in a IRA account. For the TFSA (tax free savings account), you cannot trade any leveraged instrument that requires a margin to trade like spot forex or futures because they are judged too speculative in nature, an alternative for that is leveraged ETFs or buying naked calls and puts (apparently buying naked calls on the SP-500 is less speculative than trading the e-mini... go figure).

In the end if you are a speculator and not an investor Canada really is not that great concerning taxation... We wont pay this healthcare system by giving tax breaks to traders... tax breaks are meant for the workers who try to save a little for retirement, if you are a day trader you are out of luck, you have to pay or hope that the tax guy does not notice or get an offshore account if your conscience is OK with getting free healthcare without paying a dime for it.

You guys are missing something important. In Canada, you can start a business (I think it costs like $200), you expense to it, including all computer costs, internet, office supplies, rent for a portion of your home(office), commissions (spreads), vehicle, etc.................................

Maybe, but still, Canada is no tax haven compared to the US when it comes to trading (or businesses in general). Americans also can get incorporated and the salary or dividend they will get out of whatever corporation they will have created will be taxed at a lesser rate then here.
Dont get me wrong I am not complaining, I am happy to live where I do but if anyone is considering Canada for tax purposes that person is clearly out of his mind except maaaaybe for Alberta but then again their trading regulations are pretty messed up, at least regarding spot FX they are.

PS: Bear in mind that I come from the province of Quebec, the most heavily taxed place in North America.

That is for trading stocks only. For Forex trading, all profit is considered capital gains no matter how many trades you do in a year. SO FAR that's the rule. Shhhhhhhh...don't let Revenue Quebec hear you.

+1 for CAD traders

Howdie Canadian Forex traders;

So what's the real score on taxes please, say you have a 9-5 too how are taxes filed for any gains and what about for losses; furthermore is there a need to incorporate into a business to get some tax advantages/ breaks etc, if so when would be the best time...? thanks

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As a Forex trader in Canada are you allowed to open accounts with brokers outside of Canada; also am hearing that it's not legal to open accounts with brokers that don't have an office in Canada etc. and are dont have IIROC or CIPF clearance/ memberships etc. ???

Whats the real score on this please.?

Good day;

As a Forex trader in Canada are you allowed to open accounts with brokers outside of Canada; also am hearing that it's not legal to open accounts with brokers that don't have an office in Canada etc. and are dont have IIROC or CIPF clearance/ memberships etc. ???

Whats the real score on this please.?