[Tax Strategy] Keep the profits you earn! Offshore FOREX vs Domestic FOREX "Taxes" Truth

Hello, this is Jerusalem.

This time, I will talk about the "exit strategy (taxes)" after making a profit in trading.

I automate the favorite indicator (mainly products by HappyAngel) with the product 『Loop-Turnaround_EA』 for turn-around trading, but in fact this "exit strategy (taxes)" is the biggest reason I strongly recommend "domestic FX MT4."

When you earn a lot with Kaikou OFX, you are faced with the wall of "progressive taxation."

The more profit you make, the higher the tax rate, and combined with prefectural tax, you can lose up to about 55% in taxes.

There is also the idea of "corporatizing to lower the tax rate (about 35%)," but when you incorporate, the amount of director's compensation can only be decided once a year, and you can only withdraw up to that amount for the year.

It is very inconvenient in terms of "money you can freely use."

On the other hand, what about taxes on domestic FX?

Domestic FX applies "separate assessment taxation," and no matter how much profit you make, the tax rate is uniformly about 20%.

Individuals can withdraw freely, and the tax rate is overwhelmingly low.

Considering the "actual profits remaining," for operations that do not require extreme leverage, domestic FX is overwhelmingly advantageous.

Also, as mentioned in the previous article, if you apply extreme leverage, you quickly cannot endure unrealized losses, leading to frequent account bankruptcies.

【Current State of Domestic MT4 Brokers】

Nowadays, there are fewer and fewer brokers in Japan offering MT4.

There are only a few domestic MT4 brokers that allow CFD trading on gold, Nikkei 225, etc., with MT4.

Among the domestic MT4 brokers that offer CFD trading on MT4,

① OANDA JAPAN announced that it will discontinue MT4 this year,

② Rakuten Securities' MT4 has two-factor authentication, which leaves some concerns about automated trading on VPS.

③ FXTF only provides chart viewing and does not support automated trading.

In such a situation, I am currently focusing on MT4 of FOROOOOOm and plan to open an account soon to conduct live testing.

I believe that choosing a domestic broker by considering not only immediate profits but also how much you ultimately have left in hand is the first step for investors.