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no regulations stopping US residents from opening offshore accounts

  • #181
  • Jul 17, 2011 4:19pm Jul 17, 2011 4:19pm
Quoting pip_seeker
There's more to it than that as I posted a few posts back.

You have to maintain a foreign bank account in the name of the IBC, LLC or whatever.

Which means you need two forms of risk capital. One to stick in a foreign bank to maintain and pay banking fees the other to stick in the broker acct.

A foreign bank account costs more than you can imagine and you take for granted if you live in the USA. (they charge you for everything.)

While people will likely chime in and say "your" money is safer in foreign bank than in the states... it is...
You can start with 12 months free banking here
http://www.barclays.co.uk/Businessba...P1242558530035
As I recall a USD account with them was about £40 a year

£85,000 is guaranteed in banks in the UK, I'm unsure if that includes LTD companies though
  • #182
  • Jul 17, 2011 4:36pm Jul 17, 2011 4:36pm
well, that makes the whole process reasonably painless then..

the benefits seem to far outweigh the cost..

NO FIFO
Segregated Accounts
Taxes on withdrawn profit only
Protection if retail fx is eliminated in US
High Leverage and Hedging
  • #183
  • Jul 17, 2011 4:41pm Jul 17, 2011 4:41pm
Quoting RichFWebb
well, that makes the whole process reasonably painless then..

the benefits seem to far outweigh the cost..

NO FIFO
Segregated Accounts
Taxes on withdrawn profit only
Protection if retail fx is eliminated in US
High Leverage and Hedging
Do you need to be a resident of UK to be a director of a Limited Company?

UK also tends to follow US alot so maybe this option will be unavailable in the future. Although I think FOREX is a larger investor instrument in the UK than in US, so maybe not. I honestly can't believe I'm discussing this at this point. Disgusting.
  • #184
  • Jul 17, 2011 4:42pm Jul 17, 2011 4:42pm
Quoting RichFWebb
well, that makes the whole process reasonably painless then..

the benefits seem to far outweigh the cost..

NO FIFO
Segregated Accounts
Taxes on withdrawn profit only
Protection if retail fx is eliminated in US
High Leverage and Hedging
Exactly, anyone who is serious can do it quite easily, people think setting up a company is a big deal but it is actually not that hard. If I was a US resident I'd have done it last year when the NFA 1st started this BS.

I think 1% commision on your annual profits for me to handle stuff this end seems more than reasonable ;-)
  • #185
  • Jul 17, 2011 4:42pm Jul 17, 2011 4:42pm
Quoting 2+2=4ex
Do you need to be a resident of UK to be a director of a Limited Company?

UK also tends to follow US alot so maybe this option will be unavailable in the future. Although I think FOREX is a larger investor instrument in the UK than in US, so maybe not. I honestly can't believe I'm discussing this at this point. Disgusting.
No you can be anywhere in the world.
  • #186
  • Jul 17, 2011 5:03pm Jul 17, 2011 5:03pm
Quoting 2+2=4ex
I honestly can't believe I'm discussing this at this point. Disgusting.
agreed. it's disgusting.
  • #187
  • Jul 17, 2011 5:07pm Jul 17, 2011 5:07pm
Quoting RichFWebb
agreed. it's disgusting.
LMFAO yeah I'm disgusted at the pair of you
  • #188
  • Jul 17, 2011 6:04pm Jul 17, 2011 6:04pm
Quoting BenScoobert
assuming it is banned in the US and not UK, your company can trade with UK brokers
So it would basically be a fake company?

I read this on another thread

"To ease your minds a little, the SEC DOES NOT regulate all of retail Forex in the US, only certain retail Forex. So even if the SEC banns "retail forex" it would only be certain companies like e*Trade, TD Ameritrade, etc."
What is any ocean but a multitude of drops?
  • #189
  • Jul 17, 2011 6:04pm Jul 17, 2011 6:04pm
Quoting BenScoobert
You can start with 12 months free banking here
http://www.barclays.co.uk/Businessba...P1242558530035
As I recall a USD account with them was about £40 a year

£85,000 is guaranteed in banks in the UK, I'm unsure if that includes LTD companies though

Banking is only part of it. I based my answers on forming an IBC in Belize, because there is no corporate tax, among many other good rules to start an IBC if you are a sole investor.

The banking thing in Belize is more geared for the ultra rich and most likely tax cheats, but if I was ultra rich I could just claim the high net worth escape clause and just trade as I always have. I'm not doing this to get out of paying taxes or whatever.

If you are a foreigner doing anything in a foreign land there is always a certain amount more risk you are partaking in... and typically where the banking industry is charging you a more respectable fee, then you have governments taxing you or requiring you to report this or that so on and so forth.

So you have to take everything into account not just one thing.
  • #190
  • Jul 17, 2011 6:53pm Jul 17, 2011 6:53pm
Anyone considering forming an overseas company please do your due diligence carefully. DON'T cut corners here. Don't just pay anybody you meet over the internet to do your paper work for you. There are serious planning issues that go into something like this.

For example. There are people in the states that think they have a proper corporation, limited liability company, and or a host of other entities setup, but they don't.... For various reasons. They have not paid proper business privilege taxes, they are commingling money improperly from their business with various personal accounts, they have never held a proper meeting with minutes, they are operating the company like a sham. Well you know what type of legal protection that affords them when something goes down. Squat.... Research piercing the corporate veil.
Do your time and enjoy the ride...
  • #191
  • Jul 17, 2011 7:11pm Jul 17, 2011 7:11pm
Quoting Xhale12
So it would basically be a fake company?
No, a genuine company, registered with companies house and accounts submitted by a chartered accountant in the UK.

I understand from the last few posts their is a natural scepticism, we are all so used to watching our backs in the forex market, but I'm not talking about a spoof company in zimbabwe here, everything I'm saying here you can verify with a little research.

As a U.S. resident and 100% shareholder of a company you would only pay marginally more taxes on your profits than you do now, but benefit from all the non NFA brokers out there.
  • #192
  • Jul 21, 2011 2:40am Jul 21, 2011 2:40am
Quoting BenScoobert
No, a genuine company, registered with companies house and accounts submitted by a chartered accountant in the UK.

I understand from the last few posts their is a natural scepticism, we are all so used to watching our backs in the forex market, but I'm not talking about a spoof company in zimbabwe here, everything I'm saying here you can verify with a little research.

As a U.S. resident and 100% shareholder of a company you would only pay marginally more taxes on your profits than you do now, but benefit from all the non NFA brokers out there....
I think there is a point that you've forgotten and thats the FSA. As you said it's not difficult to set up a LLC but the LLC has to have a function. When your primary function is to trade financial instruments you will need a license. Getting a license is more difficult to obtain and the cost are far higher than setting up a LLC.

If I'm not mistaken there's always the option to trade FX and metals using futures and options.
  • #193
  • Edited 3:33am Jul 21, 2011 3:07am | Edited 3:33am
Quoting swingtraderf
I think there is a point that you've forgotten and thats the FSA. As you said it's not difficult to set up a LLC but the LLC has to have a function. When your primary function is to trade financial instruments you will need a license. Getting a license is more difficult to obtain and the cost are far higher than setting up a LLC.

If I'm not mistaken there's always the option to trade FX and metals using futures and options.
Only if the company is trading other's money. The company is free to invest its own money and manage it, and of course it will need a loan from the director.
  • #194
  • Jul 21, 2011 4:00am Jul 21, 2011 4:00am
Quoting BenScoobert
Only if the company is trading other's money. The company is free to invest its own money and manage it, and of course it will need a loan from the director.
I'm pretty sure that it's also a requirement because I also tried to open a trading firm in the Netherlands and the told me I needed a registration with the AFM .


http://www.fsa.gov.uk/register/firmB....do?sid=104114
http://www.makoglobal.com/home/

You can also check other trading firms that don't manage clients money like Optiver.
  • #195
  • Jul 21, 2011 4:32am Jul 21, 2011 4:32am
Quoting swingtraderf
I'm pretty sure that it's also a requirement because I also tried to open a trading firm in the Netherlands and the told me I needed a registration with the AFM .


http://www.fsa.gov.uk/register/firmB....do?sid=104114
http://www.makoglobal.com/home/

You can also check other trading firms that don't manage clients money like Optiver.
There is a world of difference between large setups like that and a company with no clients whatsoever which trades its own capital.

At the end of the day it is the individuals decision whether to register or not, if you talk to the FSA directly you'll find the they will answer questions with questions avoid questions altogether.
When I asked them directly if I had to be registered they said "that is for the courts to decide" seemed extreme as I wasn't under any investigation, just asking a a straight question and getting no answer.

I see no rules broken by trading/managing someone elses money on a small scale, keep it all transparent and use a good broker and accountant. Accept no one's money to trade with, do it all through a good PAMM/MAMM setup and let the broker do the leg work.
  • #196
  • Jul 21, 2011 5:50am Jul 21, 2011 5:50am
I dug this out from an email from the FSA to myself back in November 2009

As you can see, the UK regulations relating to the forex market are very complex. Any specified activity carried on in relation to forex , which in itself is not classified as a specified investment, would not amount to a regulated activity.
However, any specified activity, for example, advising on futures contracts, in which the underlying investment relates to the forex market, is likely to amount to a regulated activity and contracts for difference will need to be authorised by the FSA or exempt. Therefore, whether you will require FSA authorisation will depend on the exact structure and activities of your business in relation to the forex market.

I guess from there it shows you can trade the company money without FSA, and as for managing other's money that depends on your interpretation of the word "advising", if you consider trading via a PAMM as advising or not.
  • #197
  • Aug 19, 2011 11:45pm Aug 19, 2011 11:45pm
Quoting Good Fortune
Anyone considering forming an overseas company please do your due diligence carefully.
Panama. A man a plan ... no seriously. The cost to set up a SA (sociedad anonima - a native Panamanian corporation) is quite low and there is competition amongst legitimate law firms in Panama for the business of helping you get that done. You don't have to go to Panama - they have the teleophone and interweb there too.

If you are a US citizen your Panamanian SA can trade through swiss or brit or other offshore brokers or banks and take advantage of higher allowable leverage, nedging, etc - if you need that. Also trade CFD's or spread bet etc - trade other instruments not available thru onshore brokers.

There are annual corporate taxes and fees to pay in Panama, as well, but I am still researching that - I think that the annual tax on the SA is 1% of its net assets.

The SA's trading income is not taxed at all in Panama - if it is income earned in an account held outside the territory - which of course it would be. If you draw a salary from the SA you will have to pay tax on that in the US. That income would only be tax-exempt (up to $87,xxx) if you are actually living in Panama for most of the year (330/365).

But if the SA sends you to Provence to live and trade (to take advantage of the time zone y'know) then of course it will need to rent you a villa and a car and a maid/secretary and feed ya'll three squares a day and those are all legitimate business expenses so who needs income anyway. Right?

And Panama is not a black- or gray-listed tax haven, so most if not all of your brokers will accept the SA as a client.

Anyway, that's the plan, man. I'd like to hear from anybody been there done that.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #198
  • Aug 20, 2011 8:40am Aug 20, 2011 8:40am
Quoting The Fool
Panama. A man a plan ... no seriously.
All that he says is true, if I could vouch for ya I would.

If too many do it though, the US will try block it, oh to be American. No doubt here in the UK we will blindly follow you soon enough like the sheep that we are.
  • #199
  • Sep 20, 2011 12:03pm Sep 20, 2011 12:03pm
So I've just read through this whole thread and from what I understand.

1) The LLC that I already have setup is not sufficient to open an offshore FX account.
2) Our government is going communist.

The main issue I'm having with my broker is FIFO. That is just pure ridiculousness. I can at least figure out Barney's retarded though process regarding reducing leverage but why eliminate LIFO? I really want to open a FXCM UK account through my LLC but I guess thats not even possible.

I'm 21 years old and I'm already considering moving out of the States as soon as I graduate. What does that say about this country?
Twitter: @zusch_ -- Preselecting trending pairs, stocks on a weekly basis.
  • #200
  • Sep 20, 2011 3:46pm Sep 20, 2011 3:46pm
I saw Hotforex and another broker mentioned earlier ITT as accepting US citizens. Anyone have any update to this?

This is sad our politicians make regulations like this to restrict citizens. I'm in the military and it sickens me that I go and fight for this country while these idiots waste time making rules that does nothing to help our country.
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