I've been trading FX and CFD's for 14 years and have spent a lot of time staying ahead of restrictive US policies that make trading more difficult and expensive. (Dodd/Frank, Obama, Gensler, etc).
My first move was to start using offshore brokers and funding with crypto. It worked and still does, but most brokers don't support crypto funding which limits broker choices going forward.
Next move was gaining residency outside of the US. This opened up a few more brokers, and I found one that supported funding and withdraw in my local currency using SPEI (MXN).
While using SPEI for MXN transfers is personally useful, all of our trading is in USD and most clients use or want USD, GBP, CHF and CAD.
US, Canadian, etc. clients have their money pooled since they are forbidden to open brokerage accounts with any broker we would consider using. The more fortunate clients open their own brokerage accounts. We robocopy trades to them. They pay a performance fee. Simple model.
We want to stay ahead of the curve:
1. More broker options. Since I'm a US taxpayer and always will be, many brokers politely decline the business when they see a US citizen involved, regardless of residency.
2. Crypto is clearly under attack by the US government. All of our broker withdrawals, except for one, use crypto. We need to diversify to have SWIFT, SEPA, etc. I received an email this morning that Binance.us is halting fiat service.
3. We have had no success with any of our current brokers wiring funds to accounts in Mexico, since the intermediary banks are in the US.
4. Panama seems to be a logical choice since the national currency is USD and offshore operations pay zero tax.
Reading through this forum has created more questions:
1. Is my business considered to be "low risk"?
2. Would a reputable bank want to do business with us? Proving source of funds would not be difficult. We are trade advisors and charge a performance fee for the service.
3. If a Panamanian bank took the business, would we have difficulty wiring funds to clients in G7 countries? Is Panama in the same group as BVI, SVG, etc?
4. Are there better alternatives for company formation and USD banking?
5. Would an EMI provide a better solution than a bank? Funds are parked with brokers. We only need be paid by clients and send redemptions. Not every client wants to deal with crypto.
My closest experience with an EMI is Paypal. I'm certain they aren't an option. I tried Neteller in the past as a crypto alternative but it didn't go well. Mostly because I'm an American.
So called advisors tell different stories. I'm hoping to find people here that have actual experience with a similar business structure and could explain what works and what to avoid. I've seen posts by other traders with a similar situation, but the threads went nowhere. Example below.
Best Jurisdiction for An Offshore Investment Fund
I'm in the US now to get an apostilled copy of my passport. My attorney advised me that this would be needed at some point for offshore company formation and banking.
With all my documents in hand, I'm ready to travel.
Some advisors have mentioned Cayman, Malaysia and Singapore as good options. I would never consider Hong Kong or any other jurisdiction that would cause banking difficulty.
I hope to continue this thread until we have implemented and tested a solid solution for the business. I know there are many other G7 based traders out there, and we're all frustrated with the horrible conditions our respective governments have forced upon us- All of it in the name of our safety. If I can figure out a solid structure, I'll be happy to share the details and recommend banks, attorneys, accountants or other advisors that provide excellent service.
My first move was to start using offshore brokers and funding with crypto. It worked and still does, but most brokers don't support crypto funding which limits broker choices going forward.
Next move was gaining residency outside of the US. This opened up a few more brokers, and I found one that supported funding and withdraw in my local currency using SPEI (MXN).
While using SPEI for MXN transfers is personally useful, all of our trading is in USD and most clients use or want USD, GBP, CHF and CAD.
US, Canadian, etc. clients have their money pooled since they are forbidden to open brokerage accounts with any broker we would consider using. The more fortunate clients open their own brokerage accounts. We robocopy trades to them. They pay a performance fee. Simple model.
We want to stay ahead of the curve:
1. More broker options. Since I'm a US taxpayer and always will be, many brokers politely decline the business when they see a US citizen involved, regardless of residency.
2. Crypto is clearly under attack by the US government. All of our broker withdrawals, except for one, use crypto. We need to diversify to have SWIFT, SEPA, etc. I received an email this morning that Binance.us is halting fiat service.
3. We have had no success with any of our current brokers wiring funds to accounts in Mexico, since the intermediary banks are in the US.
4. Panama seems to be a logical choice since the national currency is USD and offshore operations pay zero tax.
Reading through this forum has created more questions:
1. Is my business considered to be "low risk"?
2. Would a reputable bank want to do business with us? Proving source of funds would not be difficult. We are trade advisors and charge a performance fee for the service.
3. If a Panamanian bank took the business, would we have difficulty wiring funds to clients in G7 countries? Is Panama in the same group as BVI, SVG, etc?
4. Are there better alternatives for company formation and USD banking?
5. Would an EMI provide a better solution than a bank? Funds are parked with brokers. We only need be paid by clients and send redemptions. Not every client wants to deal with crypto.
My closest experience with an EMI is Paypal. I'm certain they aren't an option. I tried Neteller in the past as a crypto alternative but it didn't go well. Mostly because I'm an American.
So called advisors tell different stories. I'm hoping to find people here that have actual experience with a similar business structure and could explain what works and what to avoid. I've seen posts by other traders with a similar situation, but the threads went nowhere. Example below.
Best Jurisdiction for An Offshore Investment Fund
I'm in the US now to get an apostilled copy of my passport. My attorney advised me that this would be needed at some point for offshore company formation and banking.
With all my documents in hand, I'm ready to travel.
Some advisors have mentioned Cayman, Malaysia and Singapore as good options. I would never consider Hong Kong or any other jurisdiction that would cause banking difficulty.
I hope to continue this thread until we have implemented and tested a solid solution for the business. I know there are many other G7 based traders out there, and we're all frustrated with the horrible conditions our respective governments have forced upon us- All of it in the name of our safety. If I can figure out a solid structure, I'll be happy to share the details and recommend banks, attorneys, accountants or other advisors that provide excellent service.
