Questions: Here are a couple of questions and answers to help you better understand our launch agreement with Forex Firm X...
Can I withdraw money from the managed forex trading account?
Not yet. The forex account is owned and managed by Forex Firm X until their official launch. The managed forex account is linked to your PLX account with a unique anonymous identifier. When Forex Firm X officially launches, we will provide a special link for you to create a new forex trading account with Forex Firm X. When you do, Forex Firm X will transfer the money in the managed account to your new forex trading account.
Do I need to report the earnings in the managed forex account to my tax authorities (local or national government, etc.)?
We believe that in practically all cases the answer to this question will be “no”. However, to be sure, you may want to check the regulations of the tax authorities having jurisdiction where you live.
We expect you will not owe taxes on the managed forex account because it is not owned by you yet. It is simply linked to your PLX account until Forex Firm X officially launches, and until you actually create a forex trading account with them. At that time, and provided that both of those conditions happen, the balance will be transferred to your new forex trading account.
Once the balance is transferred to a forex trading account owned by you, you will almost certainly owe taxes on your earnings according to the tax regulations where you live.