3. Tax Considerations

Since Composer runs algorithmic trades and rebalances frequently (sometimes daily), most gains will be taxed as short-term capital gains, which are higher than long-term rates.

Composer doesn’t provide tax advice, so if you’re unsure about the best account type or have tax-related questions, it’s best to consult a CPA or tax professional.

Unlike traditional brokerage accounts, you won’t manually trade stocks or ETFs by entering ticker symbols. Instead, Composer’s algorithms (symphonies) handle trading based on preset logic. However, the IRS treats all gains the same, whether you make trades manually or an algorithm does it for you.