The website offers winnings on foreign exchange trade online without knowledge on trading. It tells you when to trade even for a $1 only.

This is probably one of the questions that you need a reasonable answer. There are hundreds of investments out there that you can prefer, but why go trading foreign currencies instead?

Forex investment is unique in various aspects.

Its trading volume is relatively huge compared to other market.

It has extreme liquidity or the capability of either buying or selling the currency without causing significant movement in the market price.

It has the largest number and variety of traders.

It is one of the markets that have long trading hours (24 hours each day, except during weekends.

Trading locations are almost everywhere, not just in the United States or major cities of Europe.
There are different factors that affect foreign exchange rate.

Another whooping fact that will make you excited to go on Forex trading: it has an average turnover in traditional foreign exchange market of around $1.88 trillion daily, according to the Triennial Central Bank Survey of the BIS (Bank for International Settlements). Here are the daily averages of turnover on the Forex market for the last 17 years:

$500 billion (April 1989)
$750 billion (April 1992)
$1.18 trillion (April 1995)
$1.48 trillion (April 1998)
$1.16 trillion (April 2001)
$1.88 trillion (April 2004)

From the figures alone, you will notice that the average trend of Forex turnover is increasing. It is estimated to reach as high as 2 to 3 trillion dollars within the next 8 to 10 years, if the number of traders around the world will continue to increase. As a matter of fact, everyone have the chance of getting a substantial slice of the Forex market wealth pie, especially that the Forex trading marketing is now on its automation process.

The concept of automation becomes the new trend to the foreign exchange trading market. The Interbank spot Forex market has also considered switching to the automated method as well.

There are several benefits that a Forex trader can derive from automated Forex trading. Here are some of such benefits and figure out why Forex trading as well as other investments (futures and commodities) prefer the automated process.

Through automated process, transactions can now be done in real time. Although manual systems have existed for quite some time now, it is difficult to achieve such benefit that the automated Forex system can offer to its traders. All of the trades can happen within a few milliseconds and can be a big plus for automated transactions against the manual system. In fact, there are problems that are addressed using automated Forex trading especially if the trader is losing a few times in a row that prevents him from making new trades. Such problem could be addressed using the automatic trading system.

With automated Forex trading, you will have a greater diversification. It means that you can trade in various markets in different time zones at a time. You can execute trades with traders from Singapore or London even it is already 12 midnight in the United States. This benefit allows you a multiple exchange model option. You can use varying trading models to evaluate short-term data. This means that you will be able to predict the trend for a shorter period of time, let us say from fifteen minutes to half an hour.

As previously mentioned, the Forex market is unique because of its extreme liquidity. This liquidity is increased when the market goes automated.

Risk management problems are solved through automated Forex trading. International checks, which are commonly used in making purchases on Forex market, are synchronized through automated technology. Since the transaction in an automated process is now on real time, there is a slim chance that the payments will be delayed, reducing the risk of non-payment by either parties. Although there are problems noted with the use of the automated system, it can be fixed through consistently-updated technologies.

With automated Forex trading market, the prediction of $2-3 trillion average daily turnover within the nest 8 to 10 years can be changed within the next 4 to 5 years. Given the quick yet efficient trades on varying time zones, automated Forex trading will now be among the existing lucrative business around the world.

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I lost around $25k in 2009 trading online foreign currency at interbankfx. I also lost almost $1k playing stocks (I know..I have no future as an investor). I’m hoping to get some of that money back.

I am using HRBlocks premium edition to enter the losses. I want to offset the $100k I made this year with the $25k in losses on the forex. From what I’ve read, I can just put a cumulative (total) amount on line 21 on my 1040 under “other income” as a negative amount. Is there a sub category that classifies this debt/loss, because I can’t enter anything directly into line 21 with HRBlock “premium”? Also, will the IRS automatically assume that I am filing the loss under section 988, or do I need to select that somewhere and include some additional forms? My understanding is that is the default way to report gains/losses unless you specifically opt out of that section and tell the IRS you want to file under section 1256?

Does the fact that I am claiming these big losses on the forex affect my ability to claim the $1k losses from the stocks/options trading. I’m reporting that on a line by line basis on 1099-B? I have two trading accounts. I have one that was just a normal trading account, and the other is my roth IRA. Should I also report my losses from my roth IRA under 1099-B?

Here’s what I “think” is correct way to file my taxes…I assume that since I should be able to claim all the stock losses under 1099-B (both regular trading account and my IRA), and I should also be able to provide a cumulative total for all of my losses from my 2009 online forex escapades on line 21 on my 1040 as a negative number (I just need the subcategory to classify this “income” under). It would effectively reduce my income by $25k and save me around $5k on my taxes I’m estimating.

I would also like recommendations on anything that might help prevent an audit? I was thinking that rather than e-filing I should mail the return in, and I should include a complete summary of all the trades that I made on an excel spreadsheet. Writing down 25% of my income will no doubt raise some red flags, and the last thing I have time for is dealing with the IRS.

Thanks to everyone for your responses!

Thanks so much for any input!