Why Profitable Traders are Moving to These Cities

Summary

In this video, the Humble Trader explores the best cities for traders to live and work in, considering factors like taxes, time zones, internet speed, and cost of living. Locations like Dubai, Puerto Rico, Singapore, and Taipei stand out for their low tax rates and excellent internet, making them ideal for traders seeking to maximize profits. The video also discusses the importance of work-life balance in cities like Barcelona and Lisbon. Additionally, the Humble Trader shares cities to avoid, such as New York, LA, and Hawaii, due to high taxes or inconvenient time zones.

Takeaways

• 😀 Traders can work from anywhere in the world, making money from home, even in their pajamas, long before work-from-home became the norm.
• 😀 Cities with low taxes are a major attraction for traders. Dubai is highlighted for having zero income tax, allowing traders to keep 100% of their profits.
• 😀 Puerto Rico offers U.S. citizens tax benefits, including zero tax on interest, dividends, and capital gains through Act 60, making it a top destination for traders.
• 😀 Singapore is a tax haven for foreign investors with a low tax rate and incentives for traders, though the cost of living is high and the climate is hot year-round.
• 😀 Fast and reliable internet is essential for traders, and cities like Taipei are praised for offering excellent internet speeds, crucial for real-time trading.
• 😀 Tax systems in cities like Taiwan and Singapore vary, but many offer incentives for capital gains tax, providing potential savings for traders.
• 😀 Traders should consider the local time zone when choosing a city, as the market opening times can significantly affect trading schedules and productivity.
• 😀 Barcelona and other Spanish cities provide a great quality of life with a good work-life balance. The market opens at 3:30 PM local time, allowing for midday breaks.
• 😀 Lisbon, Portugal, offers a flat 20% income tax rate for non-residents, making it another attractive option for traders, along with a later market opening time at 2:30 PM.
• 😀 Cities like Tokyo and Bangkok offer vibrant trading scenes and fast internet, but the high cost of living and extreme heat can be drawbacks for traders.

Q & A

What are the main criteria for choosing a Trader-friendly city?

The main criteria for selecting a Trader-friendly city include time zones and local trading hours, tax benefits, fast internet, good weather, and a low cost of living that won't drain your trading account.

Why do traders often move to places with lower taxes?

Traders often move to places with lower taxes to maximize their profits, as taxes are a significant expense in trading. Lower taxes allow them to keep more of their earnings.

What is the tax benefit of living in Dubai for traders?

Dubai offers zero income tax, meaning traders living there pay no taxes on their trading profits, allowing them to keep 100% of their earnings.

What is Act 60 in Puerto Rico, and how does it benefit traders?

Act 60 in Puerto Rico provides U.S. citizens who establish permanent residency with a tax incentive, offering zero percent tax on interest, dividends, and capital gains, making it a haven for traders looking to reduce tax burdens.

How does the tax system in Singapore benefit traders?

Singapore has a progressive tax system with a top marginal tax rate of only 22% for individuals. However, if trading qualifies as capital gains, the tax rate can be effectively zero for traders.

What are the pros and cons of living in Singapore as a trader?

The pros of living in Singapore for traders include a favorable tax system and fast internet. The cons are the high cost of living and the consistently hot and humid weather, which might be uncomfortable for some.

What makes Taipei an attractive city for traders?

Taipei is attractive to traders due to its fast, reliable internet and reasonable cost of living. However, traders should consider the late trading hours, which may not suit those who prefer a morning trading schedule.

What are the tax rates in Taiwan, and how do they impact traders?

Taiwan has a progressive tax system with rates ranging from 5% to 40%. However, traders can benefit from various deductions and exemptions that can lower their tax burden.

Why might some traders avoid living in New York City?

Traders might avoid living in New York City due to the high cost of living, which can impact trading profits. Additionally, the city's fast-paced environment can affect mental health, and internet quality can vary depending on location.

What are the drawbacks of trading from Los Angeles?

The main drawbacks of trading from Los Angeles include heavy traffic, which can be time-consuming, and high state taxes in California, which can reduce trading profits.

Why is Hawaii not an ideal location for traders?

Hawaii is not ideal for traders due to its time zone. The market opens at a very early hour, 3:30 AM local time, which makes it difficult for traders to stay active and productive.