Obtaining an Offshore Forex License

Obtaining an Offshore Forex License

Obtaining an Offshore Forex License

The best deal in Forex may well be to have an offshore Forex license. Although money can certainly be made in Forex it can be lost too. The long term winner is Forex is the broker. The old saying from the California Gold Rush days comes to mind. "When everyone is digging for gold it is the time to be selling picks and shovels." With an offshore Forex license you or your corporation could collect commissions and fees on trading in a market that trades up for $4 Trillion a day.

Central banks, institutional traders, and currency speculators trade around the clock. Some profit and some lose. The most reliable profits in Forex or other markets are the commissions paid to the broker. It is possible to obtain an offshore Forex broker's license in a number of tax advantaged, financially discrete jurisdictions.

Going Where the Money Is

The legendary bank robber, Willy Sutton, spend most of his life in prison and when he was out he robbed banks. When asked why he kept robbing banks (and going to prison) he responded, "That's where the money is!" Today without robbing banks an individual or corporation can set up shop in an offshore location, advertise, gain clients and prosper while others speculate on whether China will revalue the Yuan (Renmibi) or not.

Many currency speculators did well in anticipating the PIIGS matter and how it would drive the Euro down. Others, later, recognized a reversed head and shoulders charting pattern that indicated a stop, at least temporarily, to the Euro's slide. At all times and in all markets the licensed Forex broker makes money on the trades and does not worry a lot about fundamental and technical analysis of market trends and market reversals.

How to Get a Forex License

As in all business endeavors it is wise to obtain sound advice and counsel. You will want to find the most advantageous offshore location for being a Forex broker. It won't just be a matter of which license is easiest to obtain but which offers you the widest range possibilities, which jurisdiction is most tax advantaged for the profits you expect to make, and which jurisdiction is the most financially discrete.

The application process for an offshore Forex license will include filing an application as well as affidavits detailing personal and financial information on all directors, shareholders, and officers of your Forex company. To the extent that you wish to protect your privacy it is possible in many jurisdictions to use qualified nominees. The application fee is typically around $500 and the usual minimum setup cost will run around $27,000.

It is entirely possible to set up an offshore company and/or foundation which will in turn own your Forex brokerage. It is entirely possible and, probably, advisable to outsource a fair amount of the work of your brokerage firm. Look for an advisor going in that will have to competence to help streamline your business, set up a successful web site, and in all ways help you structure your business in the most efficient and cost effective manner.

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