Forex Trading: A Guide For The Beginner

What is forex trading? Forex trading is the process of converting one currency to another with the purpose of gaining a profit with the difference in prices. It is one of the most traded markets in the world with a daily trading volume of $5 trillion. So, as a trader, you are constantly exchanging from one currency to another. It involves constant analysis of markets around the world. That is why graphic analysis and news media are part of any trader's daily routine.

Depending on the market and economy of the country, they can be more or less volatile, that's what makes the Forex market so attractive, bringing a greater chance of high profits.

For a Forex broker or Forex trader, the UK is an ideal place. It has always been known for its strict policies and trustworthy companies. It provides traders with the most advanced trading products and services that are the most up-to-date and relevant. 

When it comes to forex trading tax in the UK, you should know what your responsibilities are under the UK income tax law. The tax year starts from April 6 in the current year to April 5 of the following year, and the personal allowance on income that is not subject to taxation is £12,500.

In the UK, forex, spread betting, and CFDs fall in the risky category because there is no underlying owned asset. Therefore, these derivatives dodge Capital Gains Tax, and the HMRC sees the profits from these as tax-free until you surpass the threshold.