Forex Prop Firm Trader

[mpanesar25]

Hello everyone,

This is my first post here and I am super excited to learn from all of you. Currently, my brother and myself have started a new venture and are wondering what you all think will be the best option for paying the least amount of tax

We have started trading using Forex Prop firms (Trueforexfunds, FTMO, etc..).

The way it works is that they make you pass a 2 phase test and give you access to trade with higher capital (10k, 50k, 100k, 200k, 400k)

They pay out 80% of all profits made (80-20 split) using DEEL.

We are planning on opening a corporation and sending the generated payment invoices under the corporations name and planning on paying each of us out through dividends.

We plan on using the money for daily expense and for paying our mortgage (under personal name).

This is still a high tax rate to us and are wondering what you guys think would be best.

We are located in Toronto, Ontario Canada.

Thank you,

Manny

 

[Thomas67]

Hello everyone,

This is my first post here and I am super excited to learn from all of you. Currently, my brother and myself have started a new venture and are wondering what you all think will be the best option for paying the least amount of tax

We have started trading using Forex Prop firms (Trueforexfunds, FTMO, etc..).

The way it works is that they make you pass a 2 phase test and give you access to trade with higher capital (10k, 50k, 100k, 200k, 400k)

They pay out 80% of all profits made (80-20 split) using DEEL.

We are planning on opening a corporation and sending the generated payment invoices under the corporations name and planning on paying each of us out through dividends.

We plan on using the money for daily expense and for paying our mortgage (under personal name).

This is still a high tax rate to us and are wondering what you guys think would be best.

We are located in Toronto, Ontario Canada.

Thank you,

Manny

Hi mate, certainly interesting to do. Which countries did you analyze for this purpose/activity (unless your focus was on Canada)?

 

[mpanesar25]

My plan was focused in canada but I am still actively exploring options on how to do this offshore. I’m open to any idea’s!

 

[Thomas67]

My plan was focused in canada but I am still actively exploring options on how to do this offshore. I’m open to any idea’s!

I'd say there's a difference between doing it abroad as an expat or to have an offshore company while still residing in Canada. In the latter case, if operations are managed from your country and without offshore economic substance it's likely to generate an issue with the Canadian tax administration.

Happy to learn too on this topic, including the related costs.