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.

 

[Kalpana Mishra]

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!

Hey, from my experience i would suggest not to go with Offshore option for your prop trading firm because undoubtedly Offshore like Marshall Islands, St. Vincent and Grenadines, Nevis are less regulated and you don't need license to run your trading company but you wont be able to secure a corporate bank account for payment processing. So no point of registering a company where you can't have bank account to transact.
And if you will go with top-tier jurisdiction like USA or Japan then it may take over a year to acquire a business license for trading.
So best option is to go with a mid-range jurisdiction like UK, Cyprus, Malta etc out of which UK will be the better one.

 

[TheCryptoAnt]

Hey, from my experience i would suggest not to go with Offshore option for your prop trading firm because undoubtedly Offshore like Marshall Islands, St. Vincent and Grenadines, Nevis are less regulated and you don't need license to run your trading company but you wont be able to secure a corporate bank account for payment processing. So no point of registering a company where you can't have bank account to transact.

You can get it with it deffo wont be with Wise / Revolut and the likes but with some high risk EMI / bank that banks to take your risk (if you have some cash)

And if you will go with top-tier jurisdiction like USA or Japan then it may take over a year to acquire a business license for trading.
So best option is to go with a mid-range jurisdiction like UK, Cyprus, Malta etc out of which UK will be the better one.

You can use a combination of both, offshore for the license + onshore for payments (basically what the gambling industry is doing)

 

[aniglo22]

Hong kong,uae is good . Usa is also good if you are just using "simulated" accounts .