What are your reasons for wanting to be an IB. Commissions? Fees? Are you going to continue trading while you run the IB business?
spreadem, I am the partner now of LLC incorporated in Europe. This is gonna be the primary business starting from FX. I do not stop trading. Why are you asking ? You don`t like IB business ?
hey chris, its funny but im trying to do something similar in europe, particulary eastern europe but not with FX but actuall access to US markets. If you start the business in your country of residence you will be responsible for your profits to be taxed by that country, your clients will also have to pay taxes (should they make money) in the country they reside in for more than 180 days/year. i am looking to go with IB and try to set up bus. that way. As far as protection, if you go with IB i woud feel pretty confident that they will not disapear with my clients money, and the accounts are protected, so this is a big plus that you can sell your customers on, because i know in europe, particulary eastern europe its a problem. trust that is. either way good luck with it. its an experience for me as well, and hopefully it wont be a bad one.
janko, I remember you. I was in Prague and had to drink alone which was not really fair I deal only with US companies. I have spent the most important part of my life there, so I know the system, and I don`t have to be afraid whether broker can steal the client`s money or not. For simple reason that the broker does not touch them. Otherwise, the rest remains the same
Sure, I like IB's. I have a good friend of mine who is an IB in Florida. His main complaint is there is so much paperwork to file and that he has to keep a lot of money in an account with his clearing company in order to satisfy the NFA. It seems to take more time and money than just trading for yourself.
Agree, but there are some alternatives which is: guaranteed IB, foreign IB and Forex. All of them have lower capital requirements, two last ones do not have to fill with NFA.