Is trading better than investing?

Asked 5 years ago

Hey traders! I have a question for those who have been trading and/or investing for some time now. Which method do you think is best, trading or investing?

Trading vs. investing Beginner Profitability of trading methods

Andia Rispah Igobwa

Wednesday, January 05, 2022

﻿Investing is typically more cost-effective than trading. There's the tax side of trading to consider. You show it as business income if you trade or as short-term capital gains if you don't. Regardless, you are taxed at your peak rate, which is usually around 34.5% after the surcharge is taken into account.