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
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How to Use the Ichimoku Kinko Hyo Indicator in Forex Trading
In this article I will go over an indicator that is very dear to my heart, the mighty Ichimoku Kinko Hyo.
The Ichimoku Kinko Hyo has been around since before World War II when Goichi Hosoda created it for use on the Asian stock markets. He tested it until 1968 before releasing it to the public. It was only in the 1990s when it became noticed in the West.
The name Ichimoku Kinko Hyo translates to "Equilibrium Chart At A Glance" which is a perfectly apt description of how the indicator works. It shows the trader, at a glance an extremely detailed picture of price sentiment, strength of trend and support and resistance. A holistic picture if you will, that allows the experienced practitioner to tell very quickly whether a potential trade is a high probability or low probability in terms of banking profits.
An Ichimoku chart is actually made up of five distinct indicator lines that form the overall picture. These are described below:
Tenkan Sen which is the highest high plus the lowest low all divided by two, over the previous nine periods.
Kijun Sen which is the highest high plus the lowest low all divided by two, over the previous twenty six periods.
Chinkou Span which is the current closing price shifted twenty six periods into the past.
Senkou Span A which is the Tenkan Sen plus the Kijun Sen all divided by two and shifted twenty six periods into the future.
Senkou Span B which is the highest high plus the lowest low for the last fifty two periods, all divided by two, shifted forward twenty six periods into the future.
Another important Ichimoku structure is The Kumo, or "Cloud". This is the area between the Senkou Span A and Senkou Span B and is a key part of the Ichimoku Kinko Hyo. It represents key support and resistance levels but compared with traditional support and resistance lines, the Kumo shows a multi-dimensional picture. The thickness of the Kumo is an indication of how strong the support or resistance is. The thicker the cloud, the stronger the support or resistance will be. Also, given how the Kumo is plotted into the future, it gives a prediction of support and resistance levels to come. This is incredibly powerful, since most indicators are all lagging and reacting to price.
For example, if price was to quickly break through a thick Kumo you would have an indication that the move was extremely strong. The area in the middle of the cloud is called the equilibrium area and price in this zone is unpredictable and the experienced Ichimoku trader will not place trades in these areas.
The Kumo also has it's own built-in sentiment which you can use in conjunction with the price sentiment. Notice in the chart above that the Kumo changes colour after it pinches together. When the Senkou Span A is above the Senkou Span B, the Kumo is said to be bullish. Conversely when the Senkou Span B is above the Senkou Span A, the Kumo is said to be bearish. Again, because the Kumo is plotted into the future it can give you advanced warning of a change in price sentiment. Try getting that from a couple of Moving Averages!
The Kumo can also have flat tops and bottoms and these are important structures. They exert an almost gravitational pull on price. You will notice that when price breaks out of the Kumo and there is a flat top or bottom that price will often snap back to the flat Kumo. With experience you will be aware of these and ensure you do not get into a fake breakout trade by ensuring that price has broken free of the gravitational pull of the Kumo.
With all that said, how does one go about trading based on the Ichimoku Kinko Hyo? Well a full discussion of this is beyond the scope of this article but there a few basic situations that constitute trading signals of varying strengths and these are discussed below.
Tenkan Sen Kijun Sen Cross
If the Tenkan Sen crosses the Kijun Sen then that is a potential signal. If the the Tenkan Crosses above the Kijun then it is a bullish signal and if it crosses below the Kijun Sen it is a bearish signal. Fortunately the Ichimoku gives us more information to help us refine these signals. If a bullish cross takes place above the Kumo, then this is a strong bullish signal. If the bullish cross takes place below the Kumo then it is a weak bullish signal. Finally if the bullish cross occurs inside the Kumo then it is seen a a neutral bullish signal. The opposite is true for bearish crosses. A strong bearish cross would be the Tenkan crossing below the Kijun underneath the Kumo and so on.
However we are still not fully refined in terms of the strength of the signal. We can also consider the Chinkou Span. This is often referred to as the "final arbiter" that can either confirm or deny a trade. The general rule is that if the Chinkou Span is above the price action when a bullish cross has takes place, it adds more weight to the signal strength. The reverse is true for bearish signals, the Chinkou Span being below the price action adds more weight to a successful outcome of a short trade.
So one very powerful trading strategy is to wait for a strong bullish or bearish Tenkan/Kijun cross with Chinkou Span confirmation. These require patience but are very reliable signals.
Kumo Breakout
This signal is where price breaks clear of the Kumo, either above or below. A long trade would be indicated when the price action breaks above the Kumo and a short trade would be indicated when price breaks below the Kumo. You can also use the Chinkou Span as in the Tenkan / Kijun cross described above. You should also use the Kumo's built-in sentiment to confirm a long or short trade. Finally by paying attention to the dangers of the flat top or flat bottom Kumos, one can further add to the strength of the signal or discard it as too risky.
Hopefully this has given you a good introduction into the Ichimoku Kinko Hyo. If you have any questions, please just drop me an email and I will be happy to help you. I have been trading this for over a year on the longer time frames and it works extremely well.
