i am a newbie and i aspire to be a trader i am currently paper trading /es on the TOS platform after reviewing my days trades i notice i am charged 3.50 per side per contract and this brings me to my question,is that commission tax deductable?
Generally speaking, no. It is usually calculated into your net P&L. As a simplified example: You realize a $100.00 gain on a futures transaction and the brokers commision of $5.00 is deducted for a net gain of $95.00.
Your net P&L is reported to the IRS, including your transaction costs. You don't have to worry about deducting your commissions, in addition to your losses, they are all included in the pdf email you get every day. Keep paper trading and worry more about how you will have a positive P&L!