Equity trading

[ravi2021]

Hi,
I have tried to look for information for some time but can't seem to find the right fit. Non US, Non EU citizen/resident. I buy and sell shares in different markets globally. Since there are different brokers i need to transfer funds between say one broker in US to another broker for europe to another one in Africa or yet another in Asia.
The brokers accept only the transfers from a bank with my bank account name. When i do make the transfers it seems like money laundering (even though it isn't) and i get shut down. It has been driving me nuts. Usually i can round trip 0.5m 3/4 times. Can't figure out a hassle free way to do this.

Tried the same thing in a corporate set up. Didn't work either. Everyone expects an operating business not a trading one.

Recommendations welcome.

 

[Joe Blasco]

Hi,
I have tried to look for information for some time but can't seem to find the right fit. Non US, Non EU citizen/resident. I buy and sell shares in different markets globally. Since there are different brokers i need to transfer funds between say one broker in US to another broker for europe to another one in Africa or yet another in Asia.
The brokers accept only the transfers from a bank with my bank account name. When i do make the transfers it seems like money laundering (even though it isn't) and i get shut down. It has been driving me nuts. Usually i can round trip 0.5m 3/4 times. Can't figure out a hassle free way to do this.

Tried the same thing in a corporate set up. Didn't work either. Everyone expects an operating business not a trading one.

Recommendations welcome.

you need to keep accounts to banks that are specialized in equities buying selling, not to savings- loan clients and can understand what you are doing...

 

[clemens]

Where is your company registered (country) ?

 

[JohnLocke]

Where is your company registered (country) ?

Second that, if you want people to help you may want to come with more details

 

[ravi2021]

i have opened companies in BVI, Nevis, Panama...basically zero capital gains tax jurisdictions. Opened bank accounts in BVI (First Carribean - doing a wire transfer via form everytime, cyprus banks - headache asking for every transfer and keeping funds on hold).
Banks rarely run decent brokerage options with access to several markets. The markets i trade are esoteric (Vietnam, Saudi Arabia,Philippines e.g.) and need several brokers for a global network.

 

[ravi2021]

Oh and btw i have tried vista trust etc too and that drove the banks nd the brokers completely mental. I am thinking i should probably open up a universal brokerage or a private bank myself considering the problems i am facing. Happy to hear of any solutions.

 

[jscargo]

IB has a lot of markets in one sole platform... US, Russia, Singapore, Australia, most European countries, Japan, India, Mexico... if your system is working already it should work nicely inside IB

 

[ravi2021]

One needs a bank account to send money to IB. That's the crux of the problem.

 

[IntlOffshore]

I have pretty extensive experience both doing what you're describing and also much of the accompanying headaches.
A few general points, as without knowing more specifics it's hard to be more specific (in my experience, it's often a separate/specific solution for each jurisdiction).

-Opening bank accounts without first being very clear with the banks about your plans (countries, asset classes your trading, transaction activity frequency/amounts, etc.) will be a waste of time and probably money.
-You need to maintain relationships at these places. Also, be willing to park some funds or get some type of (most likely secured) credit facility with them. If they are making money from you (may even be though 'management' fees), they'll be willing to put up with more of the KYC/AML headaches your activity creates for them.

-I'm sure there banks that wouldn't mind, but you'll have a much more difficult time as an individual than entity. Regarding which is the right entity jurisdiction, your physical residence (as well as nationality) play a big factor.

-Cyprus is likely not the right place for this, especially with non-EU entity. I previously did a lot of banking there, this type of activity, but the climate changed about 18-24 mos. ago. Ideally, get banking in the jurisdiction of your entity.

-If you're trying utilize the jurisdictions for 0% capital gains taxes, make sure you know clearly whether or not you would still have tax liability in your country on residence. If you would, this is a completely different situation if you plan of not declaring in that country of residency. Also, if you have a lot (banking) transaction activity, I'd guess you're not in these positions for very long? Make sure that it's in fact going to be treated as 'capital gains'.

-Definitely try to use a small transaction size than .5m when you're warming up with banks

If what you're doing is only share trading, and you're not trying to evade a legitimate tax liability (or anything else nefarious), this should not be very hard at all. There are hundreds probably thousands of firms trading in financial markets transferring funds between jurisdictions daily.

 

[ravi2021]

nothing nefarious. Those firms are structured as funds and taking third party money.
On the other hand i do have tax considerations in mind as i could be an EU resident though not an EU national. Hence the idea of doing all trading via an offshore entity and keeping profits there.

 

[Joe Blasco]

nothing nefarious. Those firms are structured as funds and taking third party money.
On the other hand i do have tax considerations in mind as i could be an EU resident though not an EU national. Hence the idea of doing all trading via an offshore entity and keeping profits there.

emmm hmmm not my business ofcourse , but you should have mentioned it from the beginning , there is a great difference in due dilligence in "I am investing my own capital under 2-3 corporate structures" and totally an other thing "I take clients within my structures" that self explains all and your difficulty to find decent banking solutions for your exotic offshore corporations...