Commentators were making the point recently that the Forex markets were "going sideways." By this these writers meant that the various major currency pairs were not changing much in relative value. In this sort of situation it becomes difficult for a Forex trader to make money. Commissions and fees eat up the small amounts that the trader can eek out of each trade. Some traders may be thinking that there has to be a better way to make money in Forex. Well, there is an offshore opportunity; start a Forex company.
There is an old expression from the days when men were first digging for gold in California. It varies with the retelling but basically the saying is that when everyone is digging for gold it is time to be selling their tools, namely picks and shovels. Those who own and operate Forex trading companies have learned this. In a world where trillions of US dollars worth of currencies are traded every year the most secure and dependable profits are in providing the platform for trades. It is in charging commissions and fees to the traders searching for profits in today’s "sideways" market.
When the PIIGS debt crisis drives the Euro down and when periodic economic worries cause a flight to the dollar, Swiss franc, and Yen traders may or may not be making money but the Forex company is. So, how does an individual or corporation set up a Forex company and where?
Offshore and Offshore Forex
Going offshore with assets is not especially new. The very rich have done this for generations taking advantage of the asset protection and privacy features of international business corporations, international banking, international foundations, and international trusts in various offshore jurisdictions. A "next step" after using offshore jurisdictions for asset protection is to use the opportunity to set up business offshore to grow assets. For example, setting up an offshore Forex company will take advantage of offshore features of asset protection and privacy as well as the opportunity afforded by being part of a multi trillion dollar foreign currency market.
The cost of obtaining an offshore Forex license will typically run around $27,000 and annual costs including license renew will usually run around $12,500. The major issues in setting up an offshore Forex company have to do with picking a competent agent and advisor, picking the most tax advantaged and cost efficient offshore jurisdiction with the least intrusive set of laws. Setting up the Forex business is obviously easier if the investor has worked in the business before.
However, outsourcing various aspects of the business can be inexpensive in an offshore setting. There is also not a problem with outsourcing out of country from an offshore jurisdiction. Here is also where picking a competent agent to help start the process comes in. There is not reason to reinvent the wheel to use another old expression. There are software tools for Forex operations, banking, and general accounting that will make life as a Forex company easier and more profitable.
There is an old expression from the days when men were first digging for gold in California. It varies with the retelling but basically the saying is that when everyone is digging for gold it is time to be selling their tools, namely picks and shovels. Those who own and operate Forex trading companies have learned this. In a world where trillions of US dollars worth of currencies are traded every year the most secure and dependable profits are in providing the platform for trades. It is in charging commissions and fees to the traders searching for profits in today’s "sideways" market.
When the PIIGS debt crisis drives the Euro down and when periodic economic worries cause a flight to the dollar, Swiss franc, and Yen traders may or may not be making money but the Forex company is. So, how does an individual or corporation set up a Forex company and where?
Offshore and Offshore Forex
Going offshore with assets is not especially new. The very rich have done this for generations taking advantage of the asset protection and privacy features of international business corporations, international banking, international foundations, and international trusts in various offshore jurisdictions. A "next step" after using offshore jurisdictions for asset protection is to use the opportunity to set up business offshore to grow assets. For example, setting up an offshore Forex company will take advantage of offshore features of asset protection and privacy as well as the opportunity afforded by being part of a multi trillion dollar foreign currency market.
The cost of obtaining an offshore Forex license will typically run around $27,000 and annual costs including license renew will usually run around $12,500. The major issues in setting up an offshore Forex company have to do with picking a competent agent and advisor, picking the most tax advantaged and cost efficient offshore jurisdiction with the least intrusive set of laws. Setting up the Forex business is obviously easier if the investor has worked in the business before.
However, outsourcing various aspects of the business can be inexpensive in an offshore setting. There is also not a problem with outsourcing out of country from an offshore jurisdiction. Here is also where picking a competent agent to help start the process comes in. There is not reason to reinvent the wheel to use another old expression. There are software tools for Forex operations, banking, and general accounting that will make life as a Forex company easier and more profitable.
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