Differences between a Regulated Forex Company and an Offshore Forex Company
Although it may sound strange to some, there are foreign exchange brokerage businesses today that are still not properly licensed and this pose many restrictions when it comes to state laws and when it comes to receiving of payments from customers, this becomes very uncomfortable when it comes to dealing with your sales people or affiliates. Retail traders of this era are very savvy and informative with the amount of information that could be mined from the internet, in such situation, having a proper jurisdiction approved activity or a license is what you may want to do to make your operations legal, where at the same time, to offer your sales channels a peace of mind when representing your company.
With a legitimate foreign exchange company, this positively positions your company, and with growing demands and need for transparency and legal requirements set out with today’s banks, to be able to attain a proper business account and the ability to accept card payments whether in any parts of the world becomes easier, as you activity is not tightly bounded by state laws or impose compliance risks to other financial institutions working with you.
For Start-up Brokers at Development Stage: Saint Vincent
The St. Vincent foreign company incorporation is one of the preferred choices for start-up Forex broker. With this offshore company incorporated, together with some added paperwork, this allows you to start operating your Forex/CFD/Crypto brokerage business in a short time, and at a very low cost. With this offshore solution, we will be able to provide you with the solution to help you open bank accounts. With this solution, you can choose to operate as a broker that offer STP, or you could operate as an A Book or B Book broker as well. The governing laws of St. Vincent & Grenadines guarantees strict secrecy of the company and the people associated with it, so it is considered to possess one of the best privacy laws in the world.
How to Register a St Vincent & Grenadine Forex Company?
Since St Vincent has no foreign exchange control, companies are allowed to operate as Forex brokers globally, with this company, you can register for bank accounts in Europe or in other parts of Asia in other places through Saint Vincent Forex company, where they have registered offices and secretaries, and the secretaries can help solve related issues such as annual review.
The main advantages of a Saint Vincent Forex Company:
- This firm is exempt from taxation for 25 years from the date of its establishment.
- Forex firm does not need to submit annual reports to any local authority.
- Forex firm can be managed anywhere in the world.
- There is no requirement for annual external audit, nor has any financial records been released.
- There are no investment restrictions except buying property in St. Vincent.
- In addition to those mentioned in the articles of association, there is no restriction on loans or dividends.
- There is no limit on the percentage of shares or property.
- In Saint Vincent, non-resident shareholders do not have to pay income tax, capital profits tax and corporate tax.
Applicable to Management and Fund Enterprises – NFA
A registration with the financial regulator of the United States, with high popularity and short application time and it is one of the most recognized regulatory regimes for most financial companies, and an important tool for improving reputation of your company. NFA is a self-discipline organization of the American derivatives industry that provides innovative and effective regulatory schemes.
NFA is designated as the National Futures Association by CFTC. Every day, it endeavors to maintain the integrity of the derivatives market, protect investors and ensure that members perform their regulatory duties. The main function of NFA is to enforce strict management in order to make NFA members strictly abide by federal laws and CFTC rules. NFA also has its own rules to monitor brokers’ code of conduct for traders and investors, so that traders and investors can avoid cheating from service providers. In addition, NFA registered the code for the financial companies of the United States, enjoying the law of the United States, through having your company’s dedicated NFA registration number; your company will show great value to this competitive investors’ market.