Working in Prop Firms without licence?

Discussion in 'Prop Firms' started by qll, Feb 16, 2007.

  1. qll


    I only see one prop firm actively recruiting trading on ET, which is Bright Trading, however they require me to be licenced. I don't want to be licenced, because I would pay higher fees when I trade retail.

    Any other GOOD firms who allow me trading from remote without a licence?
  2. Yes you can trade remote from an Offshore jurisdiction. If you are a serious trader able to contribute capital and wanting to be able to compound your capital rapidly by defering or eliminating tax then give Market Traders a bell. their site is
  3. dhpar


    if you are really serious trader then send firms like to hell, do your own research and set up offshore company for yourself.
  4. .. Unfortunately you do not grasp the necessities of the law. It is unlawful for individual traders to set up an offshore company yourself and then attempt to save tax or to fail to disclose it to IRS, ATO and tax authorities in other countries.
    That is why you need to join a prop trading firm like market traders who can provide a real service to serious traders.
  5. lescor


    There are lots of firms that will let you trade without licensing. Most of them are sub-llc's under the umbrella of a larger firm.

    I'm interested though, why would licensing result in higher fees? I think the only thing you'd pay is the annual exchange membership of a few hundred bucks.

  6. dhpar


    i like that - so owner of market traders can set up offshore while another individual can't? And needs to pay you 20% cut of P&L (in many instance hundreds 000s of $)? With no possibility to have o/n positions? Needs to pay you for seminars?
    Get back to reality - your business model is from the last century... Or maybe for very small account traders who will get ultimately screwed by this set up (because they can write off previous years losses with IRS but not your "fee" to llc/ltd)

    p.s. and it is pretty typical that already in your 3rd post on ET you try to offend people....
  7. so i guess you put up 5k and they give you about 50k in buying power to daytrade with? o wonder what the comssions are per trade? i assume this pace is legit and will not try and keep your initial 5k investment if you decide to leave? there are many firms in the u.s. that will gove you 10-1 or 20-1 buying power with 5k or even less to daytrade....
  8. Sorry if I offended by outlining what the law allows. Most people are ignorant of the legal impediments concerning offshore structuring placed on them by their Government.
    Yes you are right. Market Traders can do it correctly while you can't - the company is set up correctly adhereing to the letter of the law.
    Don't blame me for what Uncle Sam won't permit. Until 2001 it was possible to shelter tax offshore in an IBC. However at the begiinning of 2001 OECD heralded a change of stance and 911 reinforced the decision of the US and other countries to come down on international money transfers and foreign incorporations by US citizens.

    A 20% take by Market Traders is less than what Uncle Sam takes - so you still come out in front on your net P&L; and you can defer your taxes indefinitely while funds remain in the trading account. Only when you access the profits do you have a liability to pay tax. However that too can be structured so you pay less than 5%. Even if you paid full rate tax though there is a tremendous benefit through being able to compound profits untaxed. There is no tax in Hong Kong on trading profits.

    Over an 8 year period it can mean a five times greater sum accumulates compounding tax free compared to paying tax annually. For Example: If you made $1million over eight years paying tax on profits annually you could instead have $6million. Then if you cared to pay tax at say 30% you would still be left with $4million after tax instead of just $1million.

    Scepticism will just lose you between $3-5million over the next 8 years. It is just a matter of economics. Try doing the numbers yourself and then weigh up the Cost/Benefits and the risks you perceive.:D
  9. dhpar


    whatever - of course you will defend your own living.
    I just advised other traders to do their own due diligence - because it is worth it. There are better and cheaper ways to optimize your taxes...and I would never trusted <u>you</u> with my compounded returns....
  10. US citizens could do the same thing in an IRA, without having to worry about the IRS.
    #10     Feb 18, 2007