I was just wondering if anyone was familiar with how taxes are handled for traders in Canada. I do know that you can set up a corporation and trade through that, or you can trade as an individual.
What I am wondering is, if you do trade as an individual, does the government tax you as if you were a contractor (i.e. you can claim all kinds of deductions, etc.), or are you taxed at the normal full rate that an employee at a firm would have to pay? (In Canada, this can approach close to 50%, so it's a big difference.)
I assume in any case that as a prop trader you are not taxed at the capital gains rate, but at the regular income rate - is this correct?