An offshore trading license for financial and commodity derivatives can be obtained in various offshore jurisdictions. With such a license, an individual or a corporation can trade futures, options, interest rates, currencies, stocks, and more. The government application and the total cost of installing such a license will generally be around $ 27,000. The important issues start with choosing the most suitable and cost-effective jurisdiction for your needs or those of your business. It is important to choose a trusted advisor when setting up a commodity and financial derivatives business. Not all jurisdictions have the same tax advantages and not all protect your privacy equally.
The day when one could only do business in or from one’s home country is long gone. More and more individuals and companies are choosing to bank abroad, start overseas businesses, trade abroad, and establish foundations to protect their assets and privacy. As this trend continues, more and more international business opportunities present themselves. The ability to obtain a license to trade financial and commodity derivatives from an overseas location is a good example of the opportunities available today.
Better a broker than a trader
Although all traders and investors seek to capitalize on their financial experience by choosing winners in the various trading markets, the best and safest money is usually acting as a broker. Brokers charge their commission when the trade goes up and when it goes down. The ability to trade abroad is an advantage for many who are moving their assets to foundations, corporations and bank accounts abroad. Obtaining a license to provide trading opportunities in stocks, futures, commodities and options can be very lucrative in this increasingly international world.
Setting up, obtaining a license, and how much it will cost
The first and most important part of setting up a commodities and financial derivatives brokerage is choosing the jurisdiction. You will need to consider tax advantages, as well as personal and asset privacy issues. Depending on the jurisdiction, the license may allow you to do more or less with your business. Make sure what the license implies for each jurisdiction you consider.
The application will involve providing personal and financial matters for all officers, shareholders and directors of the company. If some or all of the people involved wish, it is possible to use nominees. This is a matter to discuss with your legal advisor when establishing the business.
While the typical installation cost will be about $ 27,000, annual expenses will be around $ 12,500.
In short, it is entirely possible to provide brokerage services in a number of overseas locations. Being clear about your business plans is where to start. So you will want to find a trusted advisor when you establish yourself in the correct jurisdiction and do it in such a way as to maximize your tax advantage and profit potential.
When setting up your overseas brokerage, don’t forget that even from overseas you can outsource your back office work overseas to the most profitable locations. Everything from getting the right software to run your business to helping you set up an effective website to attract customers will be within your range of concerns. Starting with the right advisor may be the most important step.