Off shore trading

Discussion in 'Professional Trading' started by praetorian2, Apr 12, 2002.

  1. Metooxx et al,

    I have my Series 7 and trade with one of the larger firms that have a presence here at Elite. My question concerns a European friend (he does not have a 7) who has both French and Swiss citizenship.

    He wants to open a retail trading account (U.S. equities) that would be tax free for him. Initial funding of approximately $250,000 (he'd really like it to be insured).

    Any recommendations on which country to set up the IBC ? Once that is in place, which broker would best serve his interests ? I told him that he would not be able to get bullets as a retail trader, but he needs to be able to place (NYSE) opening only orders, market on close, stops, and GTC orders.

    He could get a Series 7 if a professional firm wanted to take him in, but it doesn’t seem like they want non-individuals (and the ¼ mil wouldn’t be insured).

    The main thing he needs is advice on where to set up the IBC. Any books, web sites to pass along are greatly appreciated.

    Good luck all,

    #41     Apr 22, 2002
  2. Babak


    #42     Apr 23, 2002
  3. Bahamas with Terra Nova or IB is probabably the easiest, have him get in touch with me if he has any questions.
    #43     Apr 23, 2002
  4. bro59


    Metoox or someone else knowledgeable:

    Another trader and myself were continuing to discuss this issue as it relates to US ownership of an IBC. I'd like a recommendation regarding any particularly insightful and timely books on the subject. Without educating myself further on the subject of attempting to trade through a foreign corporation I can't imagine approaching some of the firms offering to assist in the formation and utilization of said entities due to the questionable and exotic nature of the beast.

    I recently came across a website selling such services
    and after recommeding that a friend look at the site, i found
    The second site has all kinds of apparently incriminating info on the guy running the incorporation and investment business. Its tough to know what to believe when you understand the concepts so vaguely.

    Anyway, interesting thread and thanks in advance.
    #44     May 5, 2002
  5. You probably shouldn't put those guys on the top of your list. Most books are outdated or not focused enough; the big accounting firms will advise you for serious money.

    Send me a PM if you want to talk about it.
    #45     May 5, 2002
  6. mrktwiz


    RE> Bahamas with Terra Nova or IB is probabably the easiest, have him get in touch with me if he has any questions

    ....going to open a trading office in the Bahamas, that would be sooo cool, Mai Tai's after a hard day of successfull opening orders folowed by early moring scalping to move into pairs trading and more scalping ending up with a HUGE MOC order, then walk out pick up a drink and kick it w/ the homies on the beach with some cool ones.....yah mon it be cool runnin......

    DO it Don and I'll trade ;-)

    #46     May 5, 2002
  7. spieler


    Gary Stevens

    Tell your french friend to send me an email in french .

    I konw that kind of problem and solutions of course :) as i was in the same case several years ago and find a solution.
    #47     May 6, 2002
  8. Best money ever spent is C.P.A. money. Tax deductible for a business anyway.:cool:

    Even more interesting was a complex,long,thorough study article that consisted of the exact,same tax return. They sent that same complex tax form to about 100 tax lawyers,C.P.A. s.

    They got 100 different answers,many varied MUCH. MONEY magazine did or does it and figured most[not all] were correct.

    Lots of grey areas and TN doesn't have income tax also.
    #48     May 17, 2002
  9. trdrmac



    The two best moves you could make are to MOVE to a tax free state. Nevada corps(for the sole purpose of tax evasion) are illegal and have no case law supporting them so don't go that route. The post about the IRA was on the money. To the extent that you have the resources in the IRA it would make more sense to trade that and leave the passive investments in a taxable account. The downside is you will not be able to short in your IRA.

    Here is what I found on Offshore corps. And again, any time you are setting up a business for the sole purpose of avoiding taxes you are at risk for tax evasion. So I would get a tax attorney and CPA to sign off on the legality of any position that you take.

    Reference the scams and reporting requirements to the US.

    The other thing, I posted a review of taxcut on the how often does a daytrader pay taxes thread. You may want to see if the software that you used is calculating your taxes correctly. For instance if it is throwing in SE tax you don't need to pay that. A 50% marginal rate seems to me like something is not calculating correctly.

    #49     May 17, 2002
  10. #50     May 17, 2002