If I want to open an account with FXCM through their United States website (fxcm.com) by selecting "MetaTrader" as the trading platform, I am being automatically redirected to the FXCM website in the United Kingdom (fxcm.co.uk) to open the account. If I am U.S. resident and open the account through FXCM United Kingdom,
We have discussed these UK forex accounts in our recent conference calls. See the Table of Contents and listen to the archives here
INTERACTIVE: CONFERENCE CALLS WITH CHAT.
1- Will this account be considered a foreign account as described in Schedule B Part III?
Probably yes, if it's considered a UK-based account.
2- Will I need to file Form TD F90.22-1?
Yes, if its a foreign-based account.
3- Will the income generated from this account considered foreign income?
Yes, but not foreign earned income for the Section 911 Form 2555 foreign earned income exclusion.
4- How will I need to report the income/loss originated from this account on my U.S. Tax Return? Can I do it on line 21 of Form 1040? Or should this be reported differently?
Same reporting as a US-based account. If the account is held in a foreign currency, you need to deal with conversion issues too.
5- Will I need to report the forex income/loss originated from this account to both the United States and the United Kingdom tax authorities?
Probably US only, unless you live in the UK.
Thank You
