Forex trading company without license how?

[fxstarter]

Is it possible to trade forex for customers without a license?


I see many doing this and they are even accepting payments on offshore accounts and pay out to customers as well, this for some years already..


I had a chat with one that it is possible to make it a club any idea?

 

[JohnLocke]

Something like that is possible, actually we had a few requests like this and also sucessfully helped a few to accomplish something similar of what you describe. Please have in mind, this is actually not cheap it is cheaper than a Financial license but still you must have a budget in the range of EUR 15.000 to 20.000 to accomplish it.

 

[acsika]

Something like that is possible, actually we had a few requests like this and also sucessfully helped a few to accomplish something similar of what you describe. Please have in mind, this is actually not cheap it is cheaper than a Financial license but still you must have a budget in the range of EUR 15.000 to 20.000 to accomplish it.

Could you describe this solution? How can i get this?


I plan to do forex money management, whitout collecting money. and i'm very interested about this solution.

 

[JohnLocke]

If it’s a closed ended funds and investors cant redeem their shares at any time you could set it up as a Private Investment Company without needing to get a Fund License.


In my view for maximum privacy and asset protection reasons the preferred model would be to set up one Offshore Company/Fund for the investors (hereinafter referred to as “IC” or “the Fund”) which would then invest with/via a second company (“the Trading Company”) which will be responsible for investing the money. The advantage of this dual structure is that if regulators (or creditors of the investors) ever tried to attack IC, the funds (which would be held/invested by the Trading Company) would remain safe and beyond the regulator’s and/or creditors’ grasp.


The Fund would invest in the Trading Company. How this would work is that the Fund would agree to place funds with the Trading Company for general investment in certain agreed strategies. In return the Trading Company would agree to remit to the Fund the profits made less basic admin costs (and/or less a percentage payable to the Promoters/Investment Managers for actively managing the portfolio – refer below paragraph headed “Flexibility”).


The Investment agreement would be between the Trading Company and the Fund. The investors themselves (via their own Offshore Company signing off on a Memorandum/Prospectus) will subscribe for and receive shares in the Fund in proportion to the amount of funds invested. The investors would of course receive share certificates and, ordinarily, the usual shareholder entitlements (except perhaps for voting rights, refer below paragraph headed “Control”). The ownership of the fund could remain flexible in that it is easy to work out the value of an investor’s shares should investors wish to exit/enter at anytime.

 

[Teddicus]

I would very much like more information on this setup. Can someone pls contact me regarding the formation of such entities.


Right now, we have been doing our due dilligence on the formation of a Trading Advisory which would place trades in client accounts on their behalf, in exchange for % commission of the profits generated. I have spoken with several attornies and regulators in various jurisdictions. It seems that Belize and or The Seychelles may be the most appropriate for our initial cause, with the Cayman Islands being the ideal next step - as we begin to grow and take on more investors classified as "Sophisticated" and "High Net Worth Individuals".


I would very much like to speak with someone from CC logic, regarding the formation of the specific setup mentioned above, as well as the details regarding formation in The Seychelles as a jurisdiction. It seems a CSL would be required in that regard, it is just important to know what it will take for the forumulation and licensing of such an entitiy (time, costs, etc.)


Right now it seems that maybe a possible combination of a Licensed Belize Company, with a Seychelles IBC as the holding company, may be the most appropriate strategy.


However, there is also the aspect to look at regarding US Tax laws and how to received the most benefits by ownership within this structure. While it is not completely clear, it seems that it may be advantageous for my US S-Corp to retain a percent ownership of the IBC. Simply as a way of paying taxes only on repatriated funds.


If the trading entity is licensed, then there will be no need for the shell game, but rather a use of the IBC to manage ownership. The other ownership will be retained by the money manager who is of middle eastern nationality.


This is simply what we have derived as a plan thus far... it has taken much sifting through information and consultations, however, there are still vague areas, and we would like to get a most comprehensive picture and plan laid out before undertaking the task.


The reason we are hesitant and avoid cyprus all together is related to its current exposure to Greece and the Greek economy. There is no doubt a potential fallout which may occur and jepordize the safety of our monies and funds.


Which is why we currently seek input from CC logic and their experience in this regard.


Many thanks in advance for your help, and wishing you all the best!


-Teddy

 

[tiea-hunter]

Why not contact cclogic directly? cclogic.net/index.php?/default_import/Tickets/Submit - sorry can't post links yet.


Once you figure out how to go about it please post here. There seems to be much money in the Forex trading industry as I read