Forex
Trading IRA
A Forex Trading
IRA is a special Individual Retirement Account (IRA) that is set up
to trade currencies. This is a big advantage for traders that want to
day trade tax free; something that cannot be done with stocks. Forex
IRA's allow investors an opportunity to diversify into the largest financial
market in the world (foreign exchange) without having to worry about
taxes. Any trading profits generated inside the IRA grow tax free. [Please
note that a forex IRA is only beneficial for citizens or residents of
the Unites States. It is not necessary for non-U.S. investors or traders.
Foreigners can trade currencies tax free in the United States with a
regular account, so they do not need to open a forex trading IRA to
operate]. To read about the differences
between trading currencies using a traditional IRA and a Roth IRA, click
here. You can also go to the Managed
Forex IRA section if you are interested in opening an FX managed
account inside an IRA.
It's important
that you sign up for a free 30-day forex
demo before you fill out and submit your paperwork.
Instructions
to open and fund a forex IRA or transfer your existing IRA?
If you are establishing a new IRA account to trade in the forex market,
transferring your existing IRA assets, or rolling over your 401(k),
403(b) or other retirement account (if you are rolling over your retirement
plan assets, also click here to
scroll down to read this important section), these are the steps
you have to follow:
- Fill out the
following forms:
- Forex
individual account form
- Equity
Trust Traditional IRA Application
- Equity
Trust Forex form
- Equity
Trust General Direction of Investment Form
- Equity
Trust Account Transfer Form (Fill out this form only
if you are transferring an existing IRA to your new Forex
Trading IRA. Also provide a copy of
your latest account statement if you are doing a transfer).
All
applications on this page are in PDF format. You need the free Acrobat
Reader program from Adobe to view them. If you do not have Acrobat
Reader installed at this time, you can click
on this link to go to a website and download it for free.
- Mail all forms
along with a copy of 1 photo ID
to the following address:
Equity
Trust Company
225 Burns Road
P.O. Box 1409
Elyria, Ohio 44036
Your forex IRA account can take from 2
weeks to set up (if you are setting up a new IRA) to 6 weeks (if you
are transferring an existing IRA or rolling over your retirement plan
assets).
If you have
any questions or have any difficulty in completing the steps above,
call us toll free at 305-600-4651 or email
us at support@forex-day-trading.com.
Please remember that in order to qualify for your free
training with us, you need to have your account set up and funded
with $25,000 or more. After your IRA is set up and funded and you
receive your account number, you can fill out our forex
training registration form to sign up for your free training
Instructions
to open a forex Roth IRA or transfer an existing Roth account?
If you are setting up a new Roth IRA account or transferring your existing
Roth IRA assets to your new Forex Roth IRA, please do the following:
- Fill out the
following forms:
- Forex
individual account form
- Equity
Trust Roth IRA Application
- Equity
Trust Forex form
- Equity
Trust General Direction of Investment Form
- Equity
Trust Account Transfer Form (Fill out this form only
if you are transferring an existing Roth IRA to your new
Forex Roth IRA. Also provide a copy
of your latest account statement if you are doing a
transfer).
- Same as step
2 above.
Instructions
to open a SEP IRA for businesses or self-employed individuals?
If you are opening a SEP (Simplified Employee Pension) for your business
to trade currencies or to invest in a managed
forex account, please do the following:
- Fill out the
following forms:
- Forex
individual account form
- Equity
Trust SEP IRA Application
- SEP
Agreement (IRS Form 5305 SEP)
- Equity
Trust Forex form
- Equity
Trust General Direction of Investment Form
- Equity
Trust Account Transfer Form (Fill out this form only
if you are transferring an existing IRA to your new Forex
SEP IRA. Also provide a copy of your
latest account statement if you are doing a transfer).
- Same as step
2 above.
Rolling
over funds from a retirement plan (like a 401(k) or 403(b)) into an
IRA and then using it to trade the forex market.
Usually, companies that have 401(k) plans or other retirement plans
do not allow their employees to rollover their accounts until retirement
or until the employee is no longer with the firm. If you want to rollover
your retirement plan assets to set up your forex IRA and are not leaving
the company, please check with your firm's benefit coordinator to make
sure that you can do the rollover. The same holds true for government
employees and teachers that have 403(b) retirement plans.
How
to receive free training when you open a forex IRA.
A common question that our customers have is, "How
can I receive your free training by opening a forex IRA if I can only
deposit $3,000 a year into the IRA account?" Please read
the four suggestions below to get around this problem.
Solution
# 1: Transfer the assets from an existing IRA with $50,000 or
more to your new forex IRA.
If you already
have an existing IRA with $50,000 or more, you can simply transfer
the assets to your new forex trading IRA and qualify for the free
training.
Solution
# 2: Roll over your 401(k) or 403(b) into a new IRA account to
trade currencies.
If you retired
or left your employer and have $50,000 or more in the retirement
plan with that employer, the law allows you to do a tax free direct
rollover into an Individual Retirement Account. If you are still
working for the same company, ask your benefits coordinator if you
can do the rollover. This is another way to qualify for our free,
live training.
Solution
# 3: Open a SEP if you are self employed or own a business.
Any employer
(corporation, partnership, or self employed individual) can establish
a Simplified Employee Pension Plan (SEP). This is true even if the
business only has one employee. The SEP allows an individual to
contribute the most money to an IRA (up to $41,000 a year).
If the employer
wants to make contributions into a SEP, the employer must contribute
the same percentage for all employees of the business who are eligible.
To be eligible, employees must be at least 21 years old, must have
worked for the business during 3 out of the past 5 years, and must
have earned the minimum required compensation ($450 for the year
2000, which is adjusted annually). When desired, the employer may
contribute up to 25% (approximately 20% for self employed individuals)
of each eligible employee's compensation. Furthermore, employers
may deduct from their taxable income every qualified dollar they
contribute to the SEP.
Ex: Let's
say you have a business and pay yourself a salary of $50,000 a year,
you can contribute $12,500 to your SEP Forex IRA and will then qualify
for our free training.
Solution
# 4: Open a regular forex
account instead of a forex IRA.
If you cannot
take advantage of the three options above, then you cannot receive
our free training by opening a forex IRA. You might consider opening
a regular forex account instead and funding it with $50,000 to qualify
for our training.
Using
Equity Trust for your Forex IRA.
These flexible trust companies charge a small fee for their services
(usually a small set up fee and annual maintenance fee). An IRA to trade
currencies has to be established with a special trust company that gives
the investor the flexibility to invest in nontraditional retirement
investments such as real estate, futures, tax certificates, currencies,
etc. Although there are various companies that provide these services
to investors, we suggest that our clients use Equity Trust. Since we
have been using Equity Trust for the establishment of our clients forex
trading IRA's and managed forex IRA's,
they are used to working with us and this usually speeds up the setting
up of your account.
If you want to trade
currencies with any type of retirement account other than the ones described
in this section, please call us and we will put you in contact with
someone that can help you (305-600-4651).
You can also email us at support@forex-day-trading.com.
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Forex
IRA for Tax Free Trading
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