Offshore foreign currency exchange (forex) is gaining its reputation globally. Creating your own offshore forex account may sound a little bit complicated. But, who knows it could suit you better! Find out steps to create your own account below!
Creating your own offshore forex account: step by step explained
Quoted from Offshore Protection, the must need items to open up an offshore forex account are due diligence, KYC requirements, copy of passport, bank statement, and proof of address. Requirements follow the rules set by the location where the account is opened. Bear in mind that several jurisdictions may ask for more requirements.
Establishing an offshore company
Offshore Protection suggests forming an offshore company upon opening a trading account. Establishing the company in a country that does not require the public filing of the company’s owners are much more preferred. Forex brokers usually proceed with this step to compare the advantages they get to domestic accounts. However, pay attention to the regulations binding the legality of this matter before proceeding to open an account.
Learning about the regulations
Upon opening your trading account, choose a jurisdiction that has clear regulation such as the US, UK, and Singapore. Of course, you may take the challenge and opt for other locations less-preferred by other people. Who knows, it could be the next big thing! But most importantly, avoid suspicious-looking and bogus sounding brokers as much as possible.
Tax advisors or lawyers as back-ups for your offshore forex account
Next, try to hire a tax advisor. If possible, find one with experience in international tax laws. Brokers do not really give you advice on your tax matters, nor do they give you a detailed income report with specific tax jurisdictions. Protect yourself with a competent tax accountant or lawyer.
Institutional accounts offer you more?
The last thing that Offshore Protection noted is that institutional accounts may get more attention by brokers than individual traders. Corporate structures are preferred as they are better for holdings and transactional accounts. Furthermore, corporate structures tend to reduce the liability of an individual involved in investments, trading, and financial transactions with other entities.
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