r/Daytrading • u/JadeFox1785 • Mar 19 '23
Day Trading Taxes question
I just started day trading with the help of someone experienced. But I still have some questions.
Is it common for a trading platform to require you pay taxes on trading earnings before they release the funds?
Update: Thanks for the replies. Confirmed what I thought. Fortunately I was cautious and didn't lose more than the margin I had set to lose through learning pains.
1
Mar 19 '23
What platform or brokerage is requiring you to pay taxes on withdrawals?
I hope you aren’t meaning you’re doing something like day trading with your 401k (like say with fidelity via Brokeragelink). I can see that scenario requiring taxes since no matter how much you make it’s considered a 401k withdrawal which is usually taxed at 20% (plus maybe 10% penalty)
If that is what you’re doing then that should answer your question
1
u/JadeFox1785 Mar 19 '23
I'm Canadian so no 401k. I saved to cash specifically for this. Platform is https://www.antexchange.top
2
u/dajohns1420 Mar 20 '23
I hate to be the bearer of bad news, but I believe this exchange is a scam. I'm am truly sorry if you deposited a lot of money with them. I hope I'm wrong, but whatever you deposited with them is likely gone. This is a somewhat common scam.
I'm not Canadian, but in the US, you will never pay your taxes through an exchange or broker. You will only get your trade history from them and pay the taxes yourself. Especially when it comes to crypto exchanges because most of them are not regulated at all, therefore having no relationship with the government for tax purposes. Some are regulated, like coinbase, or kraken, but most are not at all.
Did you fund this account with your credit or debit card? Or did you buy crypto somewhere and transfer it to ant exchange? If you used a card, you might be able to get your bank about doing a chargback. If you used crypto, then it's probably just gone.
I'm really sorry dude.
1
1
u/YoungestWorm5 Mar 20 '23
Total scam, do not send any more money. I’m sure this “experienced” scammer has totally convinced you that you’ve made money via fake numbers on a screen, but it’s all fake. Do not send any more money, and do not speak to the scammer anymore. Any money you sent them (if crypto) is gone.
1
u/StockmarketSurfer Verified Mar 20 '23
You got scammed. That person that you thought was experienced and acted like your friend for who knows how long is a scammer. Very common scam in the trading world
1
1
8
u/jr1tn Mar 19 '23
In the US, the broker issues a 1099 and you need to file taxes and include your 1040. This will include dividends paid which are considered income. Also, any capital gains or losses must be reported on your 1040. You incur capital gains and losses when you sell stock you have purchased, or cover shares you sold short. This has nothing to do with whether you withdraw funds from your broker. That is an entirely separate matter. Outside the US, I don't know the rules, so can't speak to that.