Searching for a nice jurisdiction. I'm ready to pay for serious advice.

[vought]

Dear users,

I will appreciate your wisdom on my special request. I want to offer forex signals but I want to do it on a non USA/EU jurisdiction. Legal requirements there are simply crazy and I want to do it with a jurisdiction backing me. Yes, I know I could do it on my own with no offshore company, but I do not want that for reasons irrelevant for this case.

This is what I have:

1. EU residency.
2. Several US based offshore companies.
3. Three profitable forex strategies I want to offer as a signal provider.
4. No money to pay the hundreds of thousands of EUR/USD/GBP required to deposit and being registered as a financial advisor. No proof of experience as forex trader (I'm doing it for years but everyone wants a damn contract/document proving it). No proof of College/Business School grade backing my trading experience.

What I need:

1. Any jurisdiction where requirements to offer forex signals DO NOT require all that crazy stuff detailed in point 4 above.
2. That jurisdiction should be offshore friendly, ie, a) having no need to visit the country and b) reasonable cost.
3. Same for a bank account linked to that company with same conditions.

As I said in the title. I'm ready to pay for serious advice.

Thanks,

 

[deepspeculator]

So your "Three profitable forex strategies I want to offer" are not that profitable if you have "No money to pay the hundreds of thousands of EUR/USD/GBP required to deposit".

Maybe use your profitable strategies to get money for the deposit?

 

[vought]

That is not the problem, man. The problem with that deposit is all the legal crap that is behind it. Too many info the my national tax authority. You know what I mean.

 

[yngmind]

Dear users,

I will appreciate your wisdom on my special request. I want to offer forex signals but I want to do it on a non USA/EU jurisdiction. Legal requirements there are simply crazy and I want to do it with a jurisdiction backing me. Yes, I know I could do it on my own with no offshore company, but I do not want that for reasons irrelevant for this case.

This is what I have:

1. EU residency.
2. Several US based offshore companies.
3. Three profitable forex strategies I want to offer as a signal provider.
4. No money to pay the hundreds of thousands of EUR/USD/GBP required to deposit and being registered as a financial advisor. No proof of experience as forex trader (I'm doing it for years but everyone wants a damn contract/document proving it). No proof of College/Business School grade backing my trading experience.

What I need:

1. Any jurisdiction where requirements to offer forex signals DO NOT require all that crazy stuff detailed in point 4 above.
2. That jurisdiction should be offshore friendly, ie, a) having no need to visit the country and b) reasonable cost.
3. Same for a bank account linked to that company with same conditions.

As I said in the title. I'm ready to pay for serious advice.

Thanks,

Why would you sell signals if your strategy is profitable?

Just make money yourself.

 

[jkl197]

you come across a bit naive, you are thinking where to move or where to establish your business without considering that half of the problem is where are your clients based. If you have clients in EU/US or other heavily regulated jurisdictions (e.g. Japan, Australia, Singapore) you cannot offer your services to those clients without a local license or at least without making sure you are not breaking some rule imposed by a local regulator.
In some cases it may be possible to sell signals legally as long as you follow some rules. In other cases you can do it through some broker service (copy trading? social trading?) that will cover the legal part.
You could "rent" the regulatory umbrella through a regulated company or advisor and/or become a tied agent, but this is usually an expensive option (as the providers tend to charge a high fixed fee + a percentage of your profits).
A different type of plan is to make at least enough money to cover the expenses to set up a hedge fund or similar solution (sicav, certificates) through an expert provider (like a fund administrator offering the turnkey solution), may sound a bit expensive but it could be a good way to build your CV and reputation if you really have this ambition.
If you wish to keep it simple just trade your own money, slower scalability sure, but you spare the huge stress of dealing with regulations, clients and the risk of losing their money.
All of the above assuming that your strategies have been profitable for more than 3 years and passed the stress test of some black swan (e.g. covid panic)
Best wishes

 

[vought]

you come across a bit naive, you are thinking where to move or where to establish your business without considering that half of the problem is where are your clients based. If you have clients in EU/US or other heavily regulated jurisdictions (e.g. Japan, Australia, Singapore) you cannot offer your services to those clients without a local license or at least without making sure you are not breaking some rule imposed by a local regulator.
In some cases it may be possible to sell signals legally as long as you follow some rules. In other cases you can do it through some broker service (copy trading? social trading?) that will cover the legal part.
You could "rent" the regulatory umbrella through a regulated company or advisor and/or become a tied agent, but this is usually an expensive option (as the providers tend to charge a high fixed fee + a percentage of your profits).
A different type of plan is to make at least enough money to cover the expenses to set up a hedge fund or similar solution (sicav, certificates) through an expert provider (like a fund administrator offering the turnkey solution), may sound a bit expensive but it could be a good way to build your CV and reputation if you really have this ambition.
If you wish to keep it simple just trade your own money, slower scalability sure, but you spare the huge stress of dealing with regulations, clients and the risk of losing their money.
All of the above assuming that your strategies have been profitable for more than 3 years and passed the stress test of some black swan (e.g. covid panic)
Best wishes

Thank you very much for your honest response. You're right, I'm very naive due to mi ignorance on this topic. I find especially interesting that part 'it may be possible to sell signals as long as you follow some rules'. Could you please elaborate a bit more? Any specific example would be very useful.

 

[jkl197]

First of all apologies for calling you naive, that was arrogant of me, you came here in all humility to ask for suggestions and possibly learn and share, that must be respected.
Secondly I am not 100% sure to understand what you are trying to achieve, if you wish to pay less taxes then you probably have to move to another country (as explained in hundreds of posts on this forum) but a lot depends on your unique personal circumstances.
Sure I understand you wish to sell your signal service without going through the pain of being regulated in countries where that burden is insane (totally agree) especially at the beginning of such venture. But I dont know many details. How you wish to be paid? If you are happy with a fixed subscription fee then there are good chances you dont need to be regulated. Different story if you wish to earn a performance fee.
What do you mean with "selling signals"? Sending an email or sms or similar with a indication to buy/sell something and then the clients have to manually input the trades themselves on their accounts? Or something more automated? This makes a difference at regulatory level. But, as I was trying to convey in my previous post, a lot also depends on where are located your clients, even within Europe the regulator of each country in some case gives different interpretation to the ESMA guidelines, therefore a legal opinion in each target country is highly recommended.

Long story short you could try some of the services offered by different brokers, such as copy trading, social trading, pamm accounts or similar. Maybe you have already considered this option and you dont like it for some reason? Perhaps it is not ideal but it is low cost (or even zero cost) for you and a way to get started without those complications you wish to avoid.

 

[vought]

Thank you again for your detailed insight. I'm not especially interested in paying less taxes. I love paying low taxes, but I'm ready to pay something reasonable. My systems are good enough to make more money than I want to 'hide' The problem is that I do NOT want to go to jail, that's my top priority.

My business model is that of social trading. I'm a middleman. I contacted three traders ready to share their strategies with any potential client worldwide. On the other side any investor interested on any of them will select it/them and I will limit myself to copy those trades from trader's MT4/5 to investor's MT4/5. And yes, I will charge a monthly percentage of profit to all investors that will be used to pay the traders and me. I paid a lawyer and she informed me on the EU regulations (ESMA) and they are simply crazy even for a middleman position as described. This is why I'm looking for a reasonable jurisdiction out of the EU.

Can I ask another question? What's the exact problem of my clients using a non EU/US/AU jurisdiction? If my company is for example on a Caribbean country that allows clients worldwide, none of them will be prosecuted on their countries because they are freely selecting an international business. I do not see the issue you said in your first post.

 

[jkl197]

"Can I ask another question? What's the exact problem of my clients using a non EU/US/AU jurisdiction? If my company is for example on a Caribbean country that allows clients worldwide, none of them will be prosecuted on their countries because they are freely selecting an international business. I do not see the issue you said in your first post."

In the US, the most nazi country in the world, citizens are not 100% free to open an account with a non-US broker. It could be possible but it is rather difficult for them. And, 99% of brokers/banks/financial institutions dont accept US clients both because of the legal/regulatory restrictions and the FATCA nightmares.

In EU (and most other countries of the world) citizens still enjoy a certain degree of freedom. The troubles come when your business grows, sooner or later you will get the attention of some regulator (e.g. you or someone of your network makes the mistake of advertising the service, or some unhappy clients file complaints...) and then the EU regulator in question will presume you are doing something illegal and you will have to prove that the client came to you "unsolicited" or on the basis of "reverse solicitation" and not directly solicited.
You would not go to jail, but you would risk legal troubles and fines , having to spend a lot of money on lawyers and your career in financial services will be burnt because of the bad record.

 

[clemens]

you think the US is worse than the EU - I don't think so. You will find EMI's and Neobanks opening accounts for US citizens, just difficult as you say.

 

[Khalsou]

Dear users,

I will appreciate your wisdom on my special request. I want to offer forex signals but I want to do it on a non USA/EU jurisdiction. Legal requirements there are simply crazy and I want to do it with a jurisdiction backing me. Yes, I know I could do it on my own with no offshore company, but I do not want that for reasons irrelevant for this case.

This is what I have:

1. EU residency.
2. Several US based offshore companies.
3. Three profitable forex strategies I want to offer as a signal provider.
4. No money to pay the hundreds of thousands of EUR/USD/GBP required to deposit and being registered as a financial advisor. No proof of experience as forex trader (I'm doing it for years but everyone wants a damn contract/document proving it). No proof of College/Business School grade backing my trading experience.

What I need:

1. Any jurisdiction where requirements to offer forex signals DO NOT require all that crazy stuff detailed in point 4 above.
2. That jurisdiction should be offshore friendly, ie, a) having no need to visit the country and b) reasonable cost.
3. Same for a bank account linked to that company with same conditions.

As I said in the title. I'm ready to pay for serious advice.

Thanks,

You should double check with the following jurisdiction:
• Saint Kitt and Nevis
They are crypto friendly and for all activities related to trading they are good.

 

[vought]

"Can I ask another question? What's the exact problem of my clients using a non EU/US/AU jurisdiction? If my company is for example on a Caribbean country that allows clients worldwide, none of them will be prosecuted on their countries because they are freely selecting an international business. I do not see the issue you said in your first post."

In the US, the most nazi country in the world, citizens are not 100% free to open an account with a non-US broker. It could be possible but it is rather difficult for them. And, 99% of brokers/banks/financial institutions dont accept US clients both because of the legal/regulatory restrictions and the FATCA nightmares.

In EU (and most other countries of the world) citizens still enjoy a certain degree of freedom. The troubles come when your business grows, sooner or later you will get the attention of some regulator (e.g. you or someone of your network makes the mistake of advertising the service, or some unhappy clients file complaints...) and then the EU regulator in question will presume you are doing something illegal and you will have to prove that the client came to you "unsolicited" or on the basis of "reverse solicitation" and not directly solicited.
You would not go to jail, but you would risk legal troubles and fines , having to spend a lot of money on lawyers and your career in financial services will be burnt because of the bad record.

Once more thank you very much for this detailed information. This forum is simply priceless.

You should double check with the following jurisdiction:
• Saint Kitt and Nevis
They are crypto friendly and for all activities related to trading they are good.

Man, are those legit countries? Please accept mi ignorance again, but I had to search for them on the wikipedia! Thank you for the suggestion. I will take a look at them.

 

[Khalsou]

Yes n

Once more thank you very much for this detailed information. This forum is simply priceless.



Man, are those legit countries? Please accept mi ignorance again, but I had to search for them on the wikipedia! Thank you for the suggestion. I will take a look at them.

No worries, yes they are. The best way is to contact directly a law firm based there. On Google you will find plenty, and explain them in details your project. They will guide you and explain you everything in details.

 

[polonieth]

Dear users,

I will appreciate your wisdom on my special request. I want to offer forex signals but I want to do it on a non USA/EU jurisdiction. Legal requirements there are simply crazy and I want to do it with a jurisdiction backing me. Yes, I know I could do it on my own with no offshore company, but I do not want that for reasons irrelevant for this case.

This is what I have:

1. EU residency.
2. Several US based offshore companies.
3. Three profitable forex strategies I want to offer as a signal provider.
4. No money to pay the hundreds of thousands of EUR/USD/GBP required to deposit and being registered as a financial advisor. No proof of experience as forex trader (I'm doing it for years but everyone wants a damn contract/document proving it). No proof of College/Business School grade backing my trading experience.

What I need:

1. Any jurisdiction where requirements to offer forex signals DO NOT require all that crazy stuff detailed in point 4 above.
2. That jurisdiction should be offshore friendly, ie, a) having no need to visit the country and b) reasonable cost.
3. Same for a bank account linked to that company with same conditions.

As I said in the title. I'm ready to pay for serious advice.

Thanks,

Why do you need to offer signals?

Just trade with your own money, then no need to be regulated.

 

[clemens]

Just trade with your own money, then no need to be regulated.

exactly, best advise so far!

 

[mickey]

Yeah, another thread which seems to fit my knowledge ...

I will appreciate your wisdom on my special request. I want to offer forex signals but I want to do it on a non USA/EU jurisdiction. Legal requirements there are simply crazy and I want to do it with a jurisdiction backing me. Yes, I know I could do it on my own with no offshore company, but I do not want that for reasons irrelevant for this case.

You are interested in an investment-advisor-business, this type of business requires a license in the USA as well as in the EU. That's why these jurisdictions are not suitable for your business. Unfortunately many offshore jurisdictions require a license as an investment advisor as well. Sure these are much easier to obtain and do not require a previous career in the banking sector but they are mostly there. And if not ... their entities are prohibit doing business in the financial sector in general (like in the Marshall Islands or Seychelles).

But should you do business selling signals anyhow? I mean there is a big platform out there called myfxbook.com offering signals by countless traders even for free. How valuable these signals are ... hard to say but a lot of customers and business is already occupied by this platform.