Three Profitable Offshore Opportunities - Banking, Forex, And a Foundation
The world is changing and it is changing fast. Who would have thought that small Asian economies would be leading the way out of the worst recession in seventy-five years? Who would have thought that a country like Peru would be buying dollars to alter the exchange rate and help prop up the dollar? It is a brand new world where perhaps the best place to set up a banking operation is in New Zealand although an NZOFC cannot be called a bank! Still, a tried and true solution to offshore asset management such as a Panama Private Interest Foundation remains as a profitable and secure offshore solution along with offshore banking, and opening a Forex company.
More and more people are moving their assets, their talents, and themselves out of their nations of origin and into a busy, industrious, and profitable offshore world. The very wealthy have banked in tax advantaged jurisdictions for years. They have taken still take advantage of offshore asset protection and privacy vehicles such as trusts, international corporations, and foundations to shield their wealth from prying eyes and reduce the tax consequence of inheritance. However, it is the surge of expatriates from all over the globe moving and doing business all over the globe that opens the doors to profitable offshore investment opportunities.
Three profitable offshore opportunities are starting a bank, forming an offshore Forex company, and using a Panama Private Interest Foundation as a holder of tangible assets, businesses, and bank accounts. There are many opportunities in today's fast moving world. We choose these three for their combination of opportunity and security.
Offshore Banking in the 21st Century: an NZOFC
There are many offshore banking jurisdictions. There are also a number of jurisdictions where an individual or corporation can obtain licensing and set up business offering banking services. In choosing a jurisdiction for offering offshore banking services the individual or corporation will want to search out a democratic, politically and economically stable, business friendly country. A nation where English, still the universal language, is spoken is a plus. The nation will need to have at least adequate infrastructure to support the business and ideally will have first rate telecommunications, transportation, and support services.
A nation that offers a first rate offshore banking opportunity and also fits the necessary criteria for a successful offshore operation is New Zealand. This former British Crown Colony is located in the Southwest Pacific to the East of Australia. Its population is mostly descended from British immigrants and is mostly English speaking. The country is well governed with little or no corruption and its educational standards are as good as or better than the USA, Canada, and Great Britain. This is a business friendly country known for its innovative spirit.
Of our three profitable offshore opportunities we put the New Zealand Offshore Financial Company (NZOFC) at the top of the list. This type of company is not governed by New Zealand banking law nor regulated by the Federal Reserve Bank of New Zealand. There are no capital reserve requirements in setting up an NZOFC. The law in New Zealand is quite specific in that an NZOFC cannot be called a bank or intimated to be a bank. However, such a company can take deposits from anywhere in the world outside of New Zealand. It can pay interests, make loans, market investments, manage trusts, and provide virtually all services that a bank might offer. Anyone from any country is free to apply for a license to operate an NZOFC.
A Profitable Foreign Exchange Opportunity
So, the Chinese are trading the Yuan versus the Malaysian Ringgit. The Euro is periodically in free fall as Greece and the other PIIGS reveal more sovereign debt. A flight to quality sends folks out buying Yen, US dollars, and Swiss francs. So, how do you trade foreign exchange in this hectic and uncertain world of international finance? There is certainly money to be made in Forex trading. There is, however, steady money to be made in running a Forex brokerage offshore.
There are a number of jurisdictions still where it is possible to obtain a Forex license. Because of the variable degrees of infrastructure development, business friendliness, and political stability in some offshore jurisdictions it is wise to consult someone with experience to help choose a jurisdiction, obtain licensure, and initiate operations. There are a number good places from which to do business, depending up individual preference. There are also a few disadvantageous jurisdictions to be avoided. Starting out with good advice in this arena is wise.
The point of setting of a Forex company is that the fees and commissions are steady income. While trading can be profitable it can also be a drain on capital. This is the old argument about selling picks and shovels when everyone else is prospecting for gold.
Handling Offshore Opportunity in the Most Advantageous Manner
The third offshore opportunity we mention is the Panama Private Interest Foundation. This is not directly a business opportunity but it can be a "holder" of businesses, bank accounts, and assets such as art work, yachts, airplanes, jewelry, and more. A Panama Private Interest Foundation has no owner. It does have beneficiaries. Such an entity is often used in place of a trust to pass on inheritance with minimal tax consequences. The foundation is set up in such a way and with instructions so that beneficiaries change when the first beneficiary dies. Especially for those with concerns about asset privacy and security this type of foundation will allow for individuals to benefit from assets, businesses, and bank accounts without having their personal names or other details in any public registry.
A common use of a Panama Private Interest Foundation is in an integrated offshore asset protection solution containing offshore businesses, bank accounts, and other assets. Typically the foundation is the lynch pin in this solution as the holder of assets for the use and benefit of designated persons, the beneficiaries.
These three profitable offshore opportunities are available to anyone interested in pursuing them. It only takes an email or phone call to an experienced individual or company to get the ball roll
Hati-Hati, Bersin Terlalu Keras Boleh Bikin Tulang Rusuk Retak!
Forex Trading - Protect Your Money
Let's face it, when you trade Forex you are planning to make money.
Forex is interesting and exciting. You can get a real buzz out of trading. But what is underlying that buzz. It's the fact that you are making money doing something that you enjoy. Another part of the buzz comes from the risk that you could lose. And many people do lose, particularly in the early days of trading.
This is why you must manage your money. There are a number of factors to consider:
• deciding who much will be in your trading funds
• deciding how much you will risk on a trade
• deciding how to protect yourself during a trade
Your Trading Fund
Your fund is your money. I'll bet you worked hard for it. When you start trading you have the greatest risk of losing. The tips below will help you limit your losses. But until you know what you are doing and train yourself to be disciplined the chances are you will make initial losses. I'll take it that you have tried trading with a Demo account. If you haven't do it now. Even if you are good on a Demo account trading for real money is very different. At the start you watch the charts and your mood will change with every up. You will make poor decisions. You may stay in a trade too long or not long enough.
Please decide carefully how much to put in your trading stash. Do not use money that you can't afford to lose. No one likes to lose any money. But you need to be able to ride through the worst loss. Don't put your rent/mortgage/food money on Forex. It's not worth the risk. Your trading fund is the tool that you trade with. If you were a carpenter and someone stole your drill or power saw you would be really annoyed but it wouldn't be the end of the world.
How Much to Use in a Trade?
The next thing is to decide how much of your stash you should put on any one trade. Many experienced traders say that you should not put more than 5% of your fund on any one trade. Obviously you can have a number of trades running at once. To be honest it depends on your strategy. If you are snipping or scalping (moving in any out of positions very quickly to grab a few pips here and there) you probably can't look at more than one or two trades at a time. If were then using only 5-10% of your fund there would not be much point in having the other 90% as it isn't working for you. You may want to use more of your fund per trade. At the most never use more than 20% on any one trade. Only get near that level if you are closely monitoring things.
Protecting Yourself in Case the Trade goes wrong
Every broker will offer a service which includes "stop losses". A stop loss is a level at which the trade is automatically closed if you start to use more than you are prepared to do. For example, if you Bought Euro on the EUR/USD pair you would be betting that it goes up. If you buy at 1.35175 you may set a stop loss at 1.34175. If the market suddenly crashes when you are making coffee, playing with the kids or fast asleep the trade will close at the stop loss. It isn't great but, it's not the end of the world. If you have no stop loss you will keep losing money until your fund has disappeared.
Another word of caution; most brokers will close all your positions if you fund falls to zero. No all do. In theory if the market keeps going against you you are liable to pay all the losses and not just the amount in your account. Make sure your broker will do this.
Protecting Yourself if the trade goes right
This seems a little odd. But you can use "take Profit" points. This is the flip side of stop losses. If the market goes with you it will automatically close the trade and lock in your profit at the level you have chosen. This is important. First it is a good discipline to think in advance how much you want to make. Second there is nothing worse than coming back to your desk and seeing that the market has hardly moved with you at all or gone against you. It is much worse when you see that at one point the market had actually reached a point where you would have taken a profit.
Again if you are at your desk (or have a mobile platform) you will be able to adjust your take profit point upwards if the market is really moving strongly in your direction in the hope of getting an even greater profit. Please only do this if the market is moving unusually strongly, perhaps after a major announcement. Otherwise just bank you profit and move on to the next trade.
"Trailing Stop Losses" are another way of protecting yourself and something that you need to know. You can set it to remain at say 100 points below your start. Take the example above again. You have bought at 1.35175. You set a trailing stop loss at 1.34157. But this time the market moves up and you are in profit If it moves u to 37.175 the trailing stop loss will trail 100 points behind the highest price. This means that your (trailing) stop loss will have moved up to 1.36175. This means that 100 points profit are locked in should the market reverse. Trailing stop losses are a great way to protect yourself while hoping to lock in some profit.
Don't forget that even if you have set a stop loss or take profit point you can still close the trail manually. Sometimes you just want to forget about the markets. Sometimes you don't want to be trying to relax when part of your brain is wondering what is happening with your positions. This is a great plan. You need to stop thinking about the markets. They will still be there later or on the next trading day.
Binary Options are another way some people prefer to go. The attraction is binaries is that you know what you will gain and what you will lose at the start of the trade. Generally speaking you can set the position and leave your desk. But the "all or nothing" style if not for all. Try out different ways of trading and different strategies. Pick whatever feels right for you. Don't do it because someone, or some website, says it's the way to go.
