What is Foreign Exchange?

The Foreign Exchange market, also referred to as the "FOREX" market, is the largest financial market in the world, with a daily average turnover of approximately $1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example EUR/USD or USD/JPY.  

Why haven't I heard of Foreign Exchange?

The answer is simple: the currency market was simply financially inaccessible to the general population of investors and traders, and the minimum account requirements were beyond the resources of the average investor. Since then, the situation has changed dramatically. Now under new bank regulations, instead of a minimum investment of $200K, accounts can be opened for $10 - $50K.

Who are the participants in the FOREX Market?

The FOREX market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators

How do I open an account?

Please refer to the contact numbers for 24/7 customer service. We prefer to meet with our clients on a personal level. We believe in offering the best customer service possible.  If a personal meeting is not possible for you, our customer service team will gladly handle all of your requests via online or through a teleconference call. 

What is the difference between a traditional and SEP IRA?

A SEP IRA is simply a Traditional IRA that accepts employer contributions or employee salary deferral. Once the employer or employee makes a SEP plan contribution to an IRA, the funds become Traditional IRA assets, subject to all regular IRA rules and regulations.

Are rollovers still reportable if the money is rolled back in?

Yes. If you roll the entire distribution back in, it is still a reportable event, just not taxable; however, if you rolled a portion of the distribution back in, you will only be taxed on the difference. The distribution will be reported on a 1099R and the rollover contribution will be reported on a 5498.

 I will be taking a distribution for a first-time home purchase. How will this affect my 1099R?

This distribution will be reported as a Code 1 (early distribution, no exception) on the 1099R. It is your responsibility to claim the exception when you file your tax return. You will likely file a Form 5329 - Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts - to claim an exception to the penalty.

 What are the tax and penalty consequences for taking a distribution from my Roth IRA?

This depends on whether the distribution is qualified or nonqualified, and the source of contribution assets. A qualified Roth IRA distribution may be taken tax- and penalty-free. A nonqualified Roth IRA distribution of earnings is taxable, and may be subject to penalty. A nonqualified Roth IRA distribution of conversion assets, though tax free, may be subject to a penalty if taken within five years of the conversion date. A nonqualified Roth IRA distribution of contribution assets will be tax- and penalty-free.

Is there a limit on the number of times I can reconvert amounts to my Roth IRA?

If you complete a conversion from your Traditional IRA to your Roth IRA during any tax year, and later recharacterize the amount back to your Traditional IRA, you are eligible to reconvert the amount on Jan. 1 of the following year or 30 days after the recharacterization date (whichever is later).