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Forex Swing/Daytrading Filing


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Hello. I started Forex day/swing trading this year. The amounts are small but there are a lot of small trades due to using coding/algorithm trading. Am I able to just post a single gain/loss or do I need to put every trade? What forms and data and other things will I need to look up and fill out? Normally my taxes are incredibly basic so I've never needed to talk to anyone or look into anything.



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  • 1 year later...

Hey! Congrats on starting your Forex day/swing trading journey. Regarding tax reporting, it's important to consult with a tax professional or accountant to ensure accuracy. They can guide you on whether you need to report every trade or if summarizing gains/losses is sufficient. As for forms and data, it may vary based on your location and tax regulations. To get a better understanding of the requirements, earnforex.com can be a helpful resource. They offer insights on trading-related topics, including taxes.

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Hello CenaEmelly,

For Day Trading here is an example – Note : please consult with an accountant
Note that do not get Capital Gain 50% Inclusion

>>Gross Sales

 >>Cost of Goods Sold (COGS)
 *Opening inventory
 *Purchases during the year
 *Closing inventory

You don't need to determine the ACB for thousands of trades - you just need to know the ACB of the positions held at the beginning of the year "opening inventory' and end of year "ending inventory". Your Cost of Sales from the trading business will be Opening Inventory + purchases - Ending inventory.

FYI : A day trader is a person who makes their living buying, selling securities. The Canada Revenue Agency looks at several factors to define investment professionals for purposes of taxation. If a taxpayer is using day trading as a way to earn or substantially supplement his income, he is not eligible to claim capital gains, and its advantageous tax rate, on those investment earnings.
A person who works in the investment industry and makes frequent short-term investment turnovers, such as a stockbroker, for example, may be considered a day trader as well.

The CRA looks at several factors to consider if a taxpayer is in the business of buying and selling securities. A professional investor will have many buying and selling transactions.

    Knowledge and experience with securities markets and transactions and time spent analyzing markets and investments also identify those engaged in investment as a business. Purchases may also be financed on margin or other debt, and the shares purchased generally won’t pay dividends.
    OF note, each securities transaction generates a T5008 slip, which identifies the purchaser by name and social insurance number, so the CRA can monitor.
    The size of the capital gains claimed may also factor into the determination that the taxpayer invests as a business. capital gains through Schedule 3

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