Record Keeping for Traders

Every trader needs records for three reasons: to pay the right amount of tax, to resolve disputes with brokers or exchanges, and to learn from their own trading. Brokers provide statements, but they rarely tell the full story, especially if you trade at several brokers, move crypto between wallets or want to know why you made each decision. A simple, consistent record keeping system takes minutes a day and can save hours of stress and real money later.

What to keep#

A trade record template#

How long to keep records#

In the US, the IRS generally recommends keeping records supporting a tax return for at least three years after filing, longer in some cases, such as six years if income was substantially underreported and seven years for claims involving worthless securities or bad debt. Records for assets you still hold should be kept until three or more years after you sell them, since they establish cost basis. Other countries have their own periods, often five to seven years. When in doubt, keep digital copies indefinitely; storage is cheap.

Simple systems#

Back up records in at least two places, such as a local drive and cloud storage. See Failover, Backups and Disaster Recovery.

Records for self review#

Tax records show what happened; a journal shows why. Reviewing records regularly reveals which setups work, which mistakes repeat and how costs affect results. See Post-Trade Analysis and Trading Routine and Reviews.

Reconcile regularly#

Compare your records with broker statements at least monthly and check year end tax forms carefully. Brokers make mistakes, especially with corporate actions, transfers and wash sales across accounts. See Trade Accounting and Reconciliation.

Frequently asked questions#

What records should traders keep?#

Trade confirmations, broker statements, tax forms, deposit and withdrawal records, crypto transaction histories, cost basis details, expenses and a trading journal.

How long should I keep trading records?#

In the US, generally at least three years after filing, longer in some situations, and for as long as you hold an asset plus several years after selling it.

Do I need my own records if my broker reports trades?#

Yes. Brokers may lack cost basis information, miss transfers or wash sales across accounts, and do not record your reasons for trading.

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