How To Choose The Best Cities For Traders
Take time to understand the tax implications of your location
As much as trading is an online business than can be done everywhere, there are various factors that have an influence on your performance as a trader and they vary from place to place.
Top countries for traders such as Singapore, Tokyo, Dubai, Pueto Rico have specific benefits that make them hubs for traders. Here are some of the factors.
Time zones and local trading hours
As a trader, you understand the need to be in a country that allows you to catch global markets in the best hours possible. Depending on the markets in which you target, the country in which you are located can be an advantage or not.
Being able to research the market before the stock exchange opens without getting up at 5 AM is awesome.
Tax benefits
Various nations are in the process of ratifying online taxes as they seek to broaden their base by tapping into the internet economy.
You need to be in a location that has the least possible taxes for traders possible such as Pueto Rico and many others.
A lot of traders and investors underestimate the power of reducing your tax bill! Take time time to understand tax implications early on in your career. It results in you being able to keep a lot more of you returns in the pockets!
For instance, the Netherlands won’t tax capital gains, they tax you based on your total assets at of the previous year and assume you have a set return rate (and taxes are calculated based on that estimated return).
Fast Internet
These one is obvious, trading needs superfast internet. Some countries unfortunately do not have fast internet. You need to check all these boxes if do not want to be annoyed with snail pace internet.
Distance from the server
You have to consider also the distance from you to the server that is receiving your orders. There would be like 100ms or more of ping that separates Asia from USA. So the closer you are to the stock exchange the better, I suppose.
Good weather
As much as countries like UAE have fast internet, you also do not want to be in 40 degrees heat.
Low cost of living
Having made your money, you also want to keep it and not burn all of it. Countries along the equator tend to have both good weather and low cost of living especially in South East Asia.
