5 Reasons Forex and Security Traders Need to Set Up an offshore Company

5 Reasons why Traders Need to Set Up an offshore Company

Are you a security or forex trader? If so, did you know that setting up an offshore company for your trading activities can offer you plenty of benefits, including those that can improve your privacy, management and profitability? Feeling intrigued? Read on.

If you are a budding trader, you might be interested in knowing that many traders form an offshore company and open an offshore business account for their trading purposes. They trade with their company name.

With that said, whether you are a new or established trader, you need to consider setting up a company; not any kinds of company, though – I'm talking about offshore company. But why?

Setting up an offshore company is your next logical step

1. Privacy

Firstly, you may put your privacy at risk, as now people may know you that you are trading for such a large amount. While this is not a problem with some, the issue of privacy is impacting many people.

An offshore company – at the right jurisdiction – can offer you the privacy you want. An additional perk: You are free from reporting requirements.

2. Business taxes are friendlier than personal taxes – offshore taxes are even better

As your trading volume (and profits) grow, you may pay too much for your taxes as an individual entity. Typically, individuals are taxed more than businesses – so, it's only logical to move your trading activities into a more advantageous entity.

With an offshore company, your tax benefits are doubled: Offshore jurisdictions are typically having lower taxes (no taxes for most) than the non-offshore counterparts.

3. Build and enhance your brand image

Trading as a company is perceived to be more trusted and respectable compared to trading as an individual. Chances are, you are perceived as a seasoned or expert trader because you have evolved from individual-level trading to corporate-level trading.

4. Separate your personal account and business account

Trading individually means that you are putting your personal assets at risk. Separating your personal account and business account means that the risks of your trading activities are assumed by your business, instead of you personally.

5. Flexibility and Convenience

You are trading using a trading platform, and you need the service of a broker. Your broker will require first-time traders to fill out forms and prepare the requirements, such as copies of ID, bank statements, address confirmation and so on. All of those mean more hassle and more costs to you. In addition, you may actually do something illegal when you trade forex in your local jurisdiction.

With an offshore company and bank account, you can trade forex any time in any way you want. Not stopping there, some offshore banks even offer you many trading services, including brokerage service.

An offshore bank located in St. Vincent and the Grenadines (SVG), for example, enables clients to trade directly with the bank, instead of going through a broker. Using MT4 (Metatrader 4) FX brokerage platform, you may trade online from any parts of the world, as well as managing your SVG-based bank account right from your laptop or smartphone.


Choosing the right jurisdiction for your trading purposes requires you to do your due diligence. You want to enjoy the perks of an offshore company can offer you legally, and in pursuing it, you often need help from those who have deep knowledge of rules and regulations concerning offshore business operations.

Having experiences with traders, at ICO Services we can advise you on the best suitable jurisdiction. Contact us here and drop all your questions! We can help - consult with us.

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