Forex Trading in a Self-Directed Retirement Account
We are ready to meet the needs of forex traders.
Trade Forex With Tax Advantages
Open your forex IRA today and start trading with tax benefits.
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Forex trading is the trading of currencies. Equity Trust only allows trading with US-based currency exchange.
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Currencies trade against each other as exchange rate “pairs." Many different currency pairs are available to trade, and you are not limited to USD pairs.
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Investors should have the training and expertise in trading before starting these highly specialized and volatile investments.
Why Trade Forex In An IRA?
Global Diversification
Forex trading adds global diversification to your IRA by accessing international currency markets, helping hedge against U.S. market fluctuations and strengthen your retirement portfolio.
Tax Efficiency
Trading forex in an IRA offers tax advantages by shielding frequent, short-term gains from immediate taxes, allowing more profits to stay invested and grow over time.
Liquidity and Accessibility
The 24/5 availability of the forex market offers high liquidity and flexibility, allowing retirement investors to respond to global events and pursue growth while managing risk.
How To Trade Forex Within Your IRA
1. Open an Account
Open an IRA with Equity Trust. We have a secure online application for your convenience to get your account ready to go.
2. Set up your Trading Account
Once you have an account with us, a trading account is set up in the name of your IRA. The entity doing the trading will be your retirement account.
3. Begin Trading
We work with your current IRA holder to move funds into your Equity Trust account. Once your funds are with Equity Trust, you instruct us to release them to your trading account, often via a wire, and then you are up and running.
Other Considerations For Trading In An IRA
- Choose both a broker and a self-directed IRA custodian when trading forex within an IRA—this is a crucial first step.
- Not all brokers support IRA accounts so selection matters.
- A seamless connection between broker and custodian is key for smooth account management and IRS compliance.
- Equity Trust supports futures trading through any broker regulated by the CFTC and NFA.
GET STARTED
If you're looking to begin trading using funds from your IRA, get in touch with one of our specialists today!
Call us at
239-333-1032 or
Send us your own questions. We're happy to help!
Futures & Forex Trading FAQs
I already have a trading account with this futures/forex company. Do I need a new one?
Yes. IRA funds and personal funds must not be commingled in the same account. A new application will need to be completed specifically for the IRA.
I already sent paperwork to the trading company to open an account. Do I still need to send a copy to the Equity Trust account?
Yes. To ensure the trading account is titled to Equity Trust Company Custodian FBO Client Name Equity Trust Account Number, we must be involved with the account establishment. Equity Trust will also need to verify that the correct Trust Tax ID is tied to the account (not your SSN). If you indicated on the forex trading company paperwork that it is to be tied to an IRA account at Equity Trust, they will likely send Equity Trust a copy. Equity Trust will work with you and the forex company to make sure the account is established properly and tied to an IRA.
I want to remove funds from my futures/forex trading account. Can I do this with them directly?
No. All funds must flow through your Equity Trust account. If you take funds from your forex trading account directly, this may be deemed a prohibited transaction. Equity Trust has established rules with the forex companies to have them redirect you to Equity Trust whenever you want to remove funds to make sure the movement of funds is properly reported to the IRS.
What are the margin requirements?
Margin requirements will vary by futures and forex company. Generally, with IRAs, you can have margin, but margins will be stricter/less than you would see in a personal (non-IRA account). The reason is IRAs cannot personally guarantee funds. The stricter margin requirements are to make sure your IRA account does not fall into the negative.
What are the trading commissions?
Trading commissions fall to the futures/forex company.
Equity Trust only has a charge when you are sending funds to the futures/forex company OR removing funds from the futures/forex company.
Once funds are in the futures/forex account you will be paying whatever commission the futures/forex company charges.
What is Equity Trust’s Role Once the Trading Account is Open?
All trading will be done with the FCM. Equity Trust is responsible for all cash flow record-keeping related to the IRA-owned trading account. Whenever you are looking to add additional funds or remove funds from the forex account, it will need to flow through your Equity Trust account. Equity Trust handles the ongoing tax reporting for contributions & distributions of assets held in your Equity Trust retirement account.
Important to Note: Trading accounts must be held in title by the investor account: Equity Trust Company Custodian FBO Client Name Client Account Number.
How much money should I keep in my IRA trading account?
You should always have enough liquid assets in your IRA to cover potential margin calls. If a shortfall has to be funded, personal assets cannot be used.
Why would I work with Equity Trust?
To trade using retirement funds, you need an IRA custodian. Equity Trust is best in class in this arena when it comes to value, service and technology.
We have specialized in trading IRA Accounts for over two decades. We are tied in with this industry, we know what brokers and investors need from us so we make it fast and simple every step of the way.