Hi, I am a newbie to this forum and relatively new to trading.
I have recently been trialing a demo account with Interactive Brokers to enable me to become familiar with both the trading platform and their accounting processes. At first glance the account reconciliation data appears to be quite complex to decipher and I am querying the degree of difficulty that will be required when presenting this data for my Australian Tax return? Understandably, the IB platform is primarily designed for US residents and I gather they provide a very comprehensive tax wrap for the US financial year but not for foreign FY's.
I have deposited AUD in the account and for demo purposes I have been mixing my trades up by using the 'FX Order' pair AUD.USD function on some trades and not on others. To try and get a handle on the IB platform I have been trading stocks both long and short (Aust & Foreign), ETF's and Indices. I am beginning to think it may be prudent to set up separate currency accounts to trade the respective products as the account reconciliation does appear quite complex and I would welcome opinions on this thought? Dividend payment reconciliation is another factor I need to be mindful of and I would welcome feedback regarding this consideration?
I have some experience using both Bell Direct & Commsec and the tax reconciliation is obviously fairly straight forward using these platforms but I have some concerns with IB in this respect at first glance? My main motivation for venturing with IB is to reduce trading costs, utilize more flexible 'conditional order and stop loss features' and to have access to a wider suite of product range within the one platform.
I am trading as an 'individual' so there is no company structure to consider here. Any opinions or advice on the need for specific trading accounting software etc. will be gratefully appreciated as there is clearly a wealth of trading experience within this forum.
Totally open to opinions on other suitable 'credible' trading platforms as I am still in the relatively early stages of structuring myself but for the meantime my immediate concern is the tax reconciliation issues with IB?