Offshore Company for Forex Trading

[zemuss]

Hi Everyone,

I am new here and would like some information on setting up a Company to Trade Forex. Being a US resident I need the company so that I can register with a broker outside of the US.

If you have any information please let me know.

Thanks and have a great weekend

 

[James Turner]

Hi, Did you check with the broker you intend to use where they will need the company to be incorporated? This should be your first step, following which a company structure can be put together in an acceptable location and banking can also be considered at that point. From a banking point of view, if you intend to trade your own funds you should not have a problem opening banking, but if you intend to trade third party funds you probably will find it difficult to obtain an account.

 

[zemuss]

There requirement is that the person or company not live in the us since they are regulated. This was per their compliance office.

 

[TacitusKilgore]

I'm looking at setting up a company for Forex and my eyes are on Seychelles at the moment. Have you done any research on incorporating there?

 

[zemuss]

Yes from my understanding Seychelles was a Forex License as well and that cost 17k

Seems the best place to get the company is St. Vincent.

 

[TacitusKilgore]

Ahh interesting as my understanding from reading the Securities Act 2007 (Secyhelles) - specifically s 45(1) - is that you only need a license when you're carrying on a business dealing in securities in Seychelles. Meaning you can do what you want outside of the country. Is anybody else able to shed some light on this?

PART 5 – LICENSING OF MARKET PARTICIPANTS
45. (1) Subject to the provisions of this Part, no person shall carry on business in Seychelles dealing in securities, or hold himself out as carrying on that business, unless that person is –
(a) licensed to do so by the Securities Authority under this Part; or
(b) subject to sub-section (2), a recognized overseas securities dealer who holds current membership to deal on a Seychelles Securities Exchange (“an exempt overseas securities dealer”).

Link to the Securities Act 2007, consolidated to Dec. 2018: https://www.fsaseychelles.sc/wp-con...Securities-Act-2007-to-20th-December-2018.pdf


On another note have you had a look at Samoa? Seems like there is no tax.

 

[zemuss]

I am not an expert on the subject so I could be totally wrong. It Why I am here hoping to figure it out.
I have a good offshore broker but wanted other choices to compliment it.

 

[TacitusKilgore]

I'd have a look at Samoa because it seems a bit cheaper than forming a St. Vincent company and it seems to give you all the benefits of privacy and low taxation.

I guess at this stage it depends:
1. where you're going to be setting up banking and which jurisdiction is more reputable to banks, etc.;
2. how important the offshore company's tax rate is to you; and
3. how important anonymity is to you.

 

[zemuss]

Who are you using to incorporate? I hope others come and suggest some things. I’m lost with this and about to give up on it

 

[TacitusKilgore]

Haven't pulled the trigger on anything yet but I'm currently tossing up between:
CFS Formations - Offshore Formations from £289 | 24+ Jurisdictions | CFS Formations and
BBCIncorp - BBCIncorp | Online Company Formation and Corporate Service

 

[zemuss]

The company you listed I going to try and give a call too. I’ll share what they say

 

[TacitusKilgore]

Thank you friend - this forum thrives when people share their experiences. Good luck!

 

[zemuss]

So curious why you want to form company? Same reason as me?

 

[TacitusKilgore]

Yep - investing in shares/ETFs and trading forex. I want to remain completely anonymous and that mean I want to use US LLCs as corporate directors of the company so my name is nowhere on any signed agreements etc.

 

[zemuss]

So you are on the other side of the pond eh?

 

[TacitusKilgore]

Yes I am in Australia and unfortunately there is no privacy in incorporating here. Not quite as bad as the UK but would not recommend Australia for anything. Corporate tax is 27.5% but supposed to be coming down to 25% by June 2021 - but that's still not great compared to even the UK! No corporate directors or secretaries - they must all be natural people. At least we don't have a public register over here (you need to pay to see details about directors and shareholders of a private company) and there is no UBO register with the government (yet).

 

[zemuss]

Gediminas im wondering if you could help us and direct us to a solution?

 

[Spinat]

Gediminas im wondering if you could help us and direct us to a solution?

You should tag the guy not link to his profile if you want his attention! Beside that, if it is a legal setup you guys are looking for, then how do you think it would look towards your customers if you hide behind US companis as director and shareholder and make it impossible to see who is behind?

 

[TacitusKilgore]

I can't speak for @zemuss but for myself when investing in shares and trading Forex I won't have any customers so how it looks from the outside doesn't bother me.

 

[zemuss]

This is only for me not a business to get clients.