Managed accounts that invest in forex offer various tax advantages, depending on the investor's country of citizenship.
For example, in the United States, investors can elect to have forex profits taxed at the more favorable long-term capital gains tax rate (read more in our Section on forex taxes).
As far as reporting of activity or profits is concerned, we are not required by law to report it. We do not issue a 1099, NR-4, or any other tax-related form at the end of the year or at any other time.
Based on the laws applicable to each investor, the client may be required to report their forex-related profits to their country's tax authority (for example the IRS in the US, HMRC in the UK, etc.). The reporting requirement rests on the investor's shoulders.
Please consult with an attorney or tax expert to confirm which tax and reporting laws, if any, apply to your managed account.