Best Country for Setting Up a Prop Trading Firm? Need Advice!

[gatrader]

Hello everyone,

I'm in the initial stages of setting up a prop trading firm (similar to models like FTMO or MyForexFund) and am seeking advice on the best jurisdiction to do so. Here's a bit about my situation:

• UBO Residence: I currently reside in a tax-free country without CFC (Controlled Foreign Corporation) rules, so ideally, I'd like to take advantage of this favorable tax environment.
• Payment Processing: A significant consideration for me is payment processing. I've been looking into platforms like Stripe, but I'm open to suggestions. I understand certain jurisdictions may be more favorable than others when it comes to payment gateways.
• Jurisdiction Concerns:
  • US: I've noticed some prop firms setting up in the US, but I'm wary about potential legal implications there.
  • EU: Setting up in the EU might not make the most sense given my tax-free residence.
  • Offshore: This option is quite appealing, but I'm concerned about potential challenges with payment processing.

Given the above, I have a few specific queries:

1. What countries or jurisdictions would you recommend for setting up such a trading firm considering the UBO's tax-free status?
2. If opting for an offshore setup, have you had any experience or know of others who successfully integrated with a payment processor? How seamless or challenging was the process?
3. Any recommendations or insights on legal challenges or considerations, especially for someone residing in a tax-free country?

I value the experience and insights of this community and would greatly appreciate any feedback or guidance. The goal is to find a balance between legal compliance, operational ease, and, of course, fiscal advantages.

Thank you in advance for sharing your knowledge!

 

[JohnnyDoe]

How is a payment processor used by a prop trading firm?

 

[gatrader]

How is a payment processor used by a prop trading firm?

To get paid to buy the “challenges to pass” (like FTMO does). I’m not here to start a debate about the business model but to find the best solution to my case.

 

[Buseton]

I am setting up my prop firm , and I also have some concerns if you want dm and lets talk , cheers

 

[Tyler at Otonomos]

My first thought would be BVI but a payment provider like stripe would not work there but Paypal could be an option. If you were open to the US I would also say potentially DE but I don't know if you trading strategy is something that is viable in the US.