Broad Street International (BSI)

Discussion in 'Prop Firms' started by Barbaris, Aug 22, 2011.

  1. Barbaris


    I just wonder anybody know how Broad Street Securities is affiliated with BSI? Legal address of BSI is on Cayman Islands. It looks like a bit strange.
  2. dietsoda


    Offshore trading:
    Keep it low profile
    Offshore trading company:
    Guilty by association?

    Offshore trading company:
    Guilty by association?
    Low profile & low tax:
    Strategy example
    Print all 2 parts of '''Offshore trading: Keep it low profile''' with one easy click!Print this document in full
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    (Part 1 of 2)

    Trading through an offshore company can cut your tax bill. But will you have anybody to trade with?

    with Peter Widder

    Confidentiality is a primary concern of many offshore practices, particularly asset protection.

    When it comes to utilising an offshore company for trading however, a whole new category of priorities must be considered. These are the priorities of your trading partners and the attitude, outlook and sophistication of onshore authorities.

    Today legality and appearance -- and not reliance on the grey-area laissez faire and ignorance of yesteryear -- are the essential requisites for the offshore entrepreneur.

    Gone are the days of the businessman who carelessly slapped his Panamanian letter-box company down in the middle of a business transaction and raked off a share. These days, such sloppy schemes can lead to a spell raking the leaves in a prison yard.
    Genuine transactions or
    false invoicing?

    In many circumstances, it is not desirable to raise invoices in the name of an exotic offshore company, nor is it possible to ask your offshore company's clients or trading partners to make payments to a bank in an obvious offshore tax haven.

    Remember that the books of your customers or trading partners are open to scrutiny by their local tax authorities and dealings with offshore havens -- even though legal -- are viewed with scepticism, if not suspicion.

    Tax authorities of high-tax nations are aware that offshore companies can be used for illegal tax evasion by businesses that need to "reduce" their taxable profits before year-end. After all, the ownership of an offshore company is difficult and often impossible to establish. This allows dishonest business owners to incorporate a company in an offshore haven and use it to siphon money offshore, usually by having the offshore company raise invoices payable by the onshore business.

    Consequently, trading directly in the name of a tax haven company can cause loss of business as many prospective customers feel uneasy about being wrongly suspected of participating in such false invoicing schemes.

    In many developed countries, tax authorities do not even allow or recognise payments remitted to companies based in offshore tax havens. This reflects the opinion that anyone entering into a transaction with an offshore company is not doing so out of genuine commercial need, but solely for reasons of tax mitigation -- if not tax evasion.

    Of course, there are times when an offshore company can be used to close a one-off deal if both your trading partners and the relevant tax office feel happy about the arrangement. But entering new markets or marketing products or services to unknown customers under the name of Tropical Island Trading Corp., incorporated in the Turks & Caicos, is a tall order nowadays -- unless, of course, you really are exporting conch shells or lobster
  3. gr8tr8r


    How funny you just posted this. There was just a thread here that was deleted about Broad Street. I posted to it an hour ago and now its deleted.

    Anytime I see a thread deleted it makes me wonder.

    Basically I warned everyone that Broad Street International was accepting US traders that can't get registered anywhere. This is an illegal structure because BSI needs to be registered in the US if it accepts US traders, accepts a deposit, and makes commission dollars. The SEC has been shutting these firms down aggressively. People that were in Tuco had to wait over a year and only got back a fraction of their money. I would be worried if you trade in either their "international" or CBSX structure as they will have increased scrutiny due to their improper (lack of) registration.
  4. CBSX firms (including Broad Street, although their yearly audit isn't posted online in a find-able place like everyone else's) are not permitted to have offshore traders.

    So this smells terrible (like they can't make a penny in the US and are desperate for the few 10 year recent felons who can' get registered in the US. I'd want a legal opinion on how this isn't going to get shut down, with collateral from the owners on your deposit when the company gets frozen. (Obviously I just wouldn't go near this.)

    Just CALL THE CBOE and ASK if BROAD STREET HAS AN OFFSHORE ARM, AND if it is compliant. You will find your answer there. and look for compliance.
  5. Barbaris


    Gentlemen! Thank you very much for your replies. It made me look at the situation from other side.