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If you start forex trading (UK), you need to make sure that you’re doing it at volumes that can support your livelihood. It’s the same with any other pursuit that you take on freelance. You have to ensure that you have enough business (and income) to do it full-time.
Let’s start from the beginning. Forex trading is basically foreign currency exchange. You bet on the movement on currencies to make a profit. And as so many currencies are very volatile when it comes to the movement in their value, the space is very popular for traders.
The two popular methods of trading are:
Read more about forex trading here.
Unlike your standard 9-5, the forex market is open 24/7. This means that you can easily dabble in it during your spare time before you take it on full-time. Another advantage is that it’s a very accessible pursuit. You can start forex trading from you phone, laptop – and all from your sofa.
Here’s a list of other features that make forex trading attractive to take on full-time:
There are disadvantages to going freelance, in any industry. The lack of stability is the major disadvantage and one that’s even more pronounced when you’re just starting out. When it comes to forex trading specifically, the risk can be significant.So it’s not something that you should give up the day job for without ample research and preparation.
Another risk in forex trading is that fraud is rife in the space. Not every broker will have your best interests at heart so it’s very wise to tread carefully.
Working as a full-time investor will mean that you’re responsible for paying your own taxes. You’ll have to do this via a tax return after the end of each tax year. There are potentially three types of tax that you might owe
This is he tax that we all have to pay on our earnings when we earn more than the Personal Allowance.
The income tax rates in the 2025/26 tax year 👇
| Income | Tax rate | Tax band |
| Up to £12,570 | 0% | Personal allowance |
| £12,571 to £50,270 | 20% | Basic rate |
| £50,271 to £125,140 | 40% | Higher rate |
| over £125,141 | 45% | Additional rate |
We pay national insurance to be entitled to certain state provided benefits such as the Marriage Allowance or the state pension.
National Insurance rates in the 2025/26 tax year 👇
| NI class | Who pays? | How much? |
| Class 1 | Employees earning over £12,570 | 8% on earnings between £242 and £967 per week
2% if you earn £967+ per week |
| Class 1A/1B | Employers | 15% |
| Class 3 | Voluntary contributions | £17.75 per week |
| Class 4 | Self-employed earning over £12,570 | 6% on profits between £12,570-£50,270
2% on profits over £50,270 |
Owing CGT is dependent on how much profit you make from your investments. Anything you make over the CGT allowance will be subject to tax!
Capital gains tax rates in the 2025/26 tax year. It’s paid on profits over the £3,000 CGT allowance 👇
| Type of asset | Basic rate | Higher rate |
| Shares | 10% | 20% |
| Residential property | 18% | 24% |
| Bitcoin/cryptocurrency | 10% | 20% |
| Other | 10% | 20% |
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