IBC for Forex Trading anyone knows how to go about it ?

[rotaro]

Need to know how if I can incorporate a regular IBC in Cyprus or Seychelles or any other place without the need of a license? I want to start a Forex biz!

 

[JohnLocke]

We do not know how it is in other offshore jurisdictions, but for the Seychelles the following applies:


Unless the company owner intends to trade 3rd party funds (in which case a Mutual Fund license will be needed) a Seychelles IBC does not need any license to trade forex it can do it as of right.


If the you want to act as a broker it’s a different story a separate license will be needed pursuant to the Securites Act )see copy of the Legislation attached.

 

[rotaro]

Which jurisdiction is better Cyprus or Seychelles or a 3rd one ?

 

[JohnLocke]

We only offer our services in the Seychelles and Cyprus!

Which jurisdiction is better Cyprus or Seychelles or a 3rd one ?

It depends very much on your goals you want to achieve, the major difference is that you don't need to pay in the Share Capital for Seychelles Mutual Funds / Financial license.

 

[rotaro]

So the Seychelles is the best as I understand from your replies. Does it makes any difference if I will handle 3rd party funds will that require the license I mean?


Sorry for all my questions do we also need a fund manager if it went out we have to go this route?

 

[JohnLocke]

Sorry for all my questions do we also need a fund manager if it went out we have to go this route?

EVERY fund jurisdiction requires the fund to appoint a licensed Fund Manager… ie someone licensed as a Fund Manager (a) in the jurisdiction where the Fund is to be registered or (b) in some other “recognized” jurisdiction.

Does it makes any difference if I will handle 3rd party funds will that require the license I mean?

In the Seychelles context a company which “collects and pools investor funds for collective investment purposes” must obtain a Fund license.


According to the Act a Mutual Fund:


(a) Means a company unit trust or partnership that collects and pools investor funds for collective investment purposes including hedge fund purposes or with the aim of spreading investment risks, and issues equity interests enabling investors in the mutual fund to receive or have the right to receive a portion of profits or gains derived from the investments, and


(b) Includes – (i) an umbrella fund whose equity interests are split or segregated into different funds or sub funds;


(ii) a hedge fund


The act later goes on to make it an offence for a Seychelles entity to carry out such activity without a Mutual Fund license.


I believe what you have described probably fits within the definition of Mutual Fund. What do you think?


Alternatively you may be able to proceed instead as a Collective IBC without having to apply for a Fund license provided the investors cannot compel the company to redeem their shares. If the investors are to be afforded the right to redeem shares then the collective IBC will be licensable as a Fund.

 

[clemens]

We considered for some time ago Panama and BVI neverless we decided to set this whole thing up in the Seychelles with the help from Peter from CCLOGIC, very helpful guy, very professional as well.

 

[ebaywins09]

Why not New Zealand, Panama and BVI ? I heard there it is way a lot easier to get a license for FX trading compared to Cyprus and Seychelles! I even read that some countries don't need a fx license at all and still able to open a bank account for the business what I don't know is which bank is willing to accet unlicensed fx business.

 

[rotaro]

I found that Seychelles Mutual Fund was what it requires. It took lot of time to get this thing going but finally it is done. OMG it was hard work.

 

[Teddicus]

Question... so you guys are saying that if I am looking to start a company that acts as a trading advisory... basically placing trades in client accounts through POA or LPOA, I am in the same category as a mutual fund, which "pools client funds for collective investments"?


Even though I am not pooling client funds?


Ideally we are looking to set up an entity that will manage client accounts, through PAMM, MAM and Multi-terminal software. At no time will we have access to client funds, but in some cases the broker will automatically deduct our commission for us and deposit it into our account.


In others we will rely on the investors to pay the appropriate commission via check or WT.


If it is the case that we require a license, what is the average cost of licensing in the seychelles? and is it hard to acquire as a self-made successful trader?... and since we will then fall under the qualifications of a CSL... will we then be allowed to operate and conduct our business from within the Seychelles?


Appreciate the insights gents... nice to find some people who have gone through this process before... Have been speaking to lawyer after lawyer and sifting through regulation after regulation.... It seems the BVI is not as easy as it sounded initially... and the caymans has a great tick the box licensing program if your clients are "sophisticated" (over 100k invested) or "HNWI" with NW over 1m.


Any and all insights greatly appreciated... we are basically looking for a bottom line number that it is going to cost to get this going comfortably... and what it looks like to obtain a license as a self-made trader....