Make money online…the ultimate portable trade.
Essential Steps to Making Your Money Grow Offshore and Online
More and more PTs are making a quiet but very comfortable living these days through online trading.
Quite a number of Q readers and my consulting clients are doing so right now. As their skills and knowledge develop, they are requiring more and more sophisticated services – to create more and more wealth!
The good news is that technology and services keeping up with demand. Whether you want to be an active day trader or simply maintain full control of your passive investments in a private, offshore and tax-free environment, there are good solutions out there which will meet your needs. You won’t read about them in many places, but as always the Q brings you the cutting edge!
Unquestionably, the best way to benefit from offshore trading is to be offshore yourself. To move your ass, as our American friends would say. To disappear effectively from the records of your home country’s government, buy or rent a desirable home in a country with lower living costs, hook up to the internet and an online trading account, and Bob’s Your Uncle!
But if your circumstances don’t allow you to ‘disappear’ just yet, there are still ways you can send your wealth offshore and let it accumulate tax-free. Here’s a simple 3-step plan…
The first and most basic step is to form an offshore company through which to operate. That way, you don’t have to do any offshore business in your own name. You don’t need anything particularly sophisticated here – just an offshore company from a respectable jurisdiction which can be incorporated for well under $2000. Depending on your personal circumstances and goals, there are various ‘optional extras’ which may or may not be useful, such as nominee directors. Bearer shares are one way to keep ownership a secret, whilst keeping ownership in trust is a more viable and secure option these days where higher profile business (read: larger amounts of money) are involved.
A secure encrypted internet connection via an offshore proxy server is also highly recommended for anybody who values their privacy. This allows you to connect to your online bank or broker from anywhere in the world – with two big differences.
First, it prevents the authorities, or anyone else for that matter, in the country where you are physically located from monitoring your internet connection and snooping on your online activity.
Secondly, it prevents your bank/broker from tracking your physical location via IP address – after all, I can see no legitimate reason why your bank needs to track where you are at any given time. You’ve nothing to hide, but then you’ve nothing to shout about either.
There’s a third advantage to using a proxy server too – your online account can be secured by limiting access to just one fixed IP address, which can be that of your proxy. This is the kind of security banks use between themselves, but is impractical for most home users because you are allocated a different IP address each time you log on. So the proxy adds to your online security.
A regular bank account is pretty much a necessity for any company. You can use the bank account as a passthrough for moving funds in and out of the brokerage account, and you can order a debit or credit card for easy access to your funds. This should be a secure and efficient bank in a respectable jurisdiction, but outside your home country. If you’re not the travelling type, then you need to find a bank which will open the account by mail. Whilst there’s technically no minimum deposit or balance, depending on the bank you choose you should reckon on keeping around $10,000 or equivalent in the current account. Besides keeping the bankers happy, these funds will be available to you via the plastic in case you need access to your funds in a hurry.
With the above three steps in place, you need the actual mother lode trading account. In selecting that, we need to look carefully at the facilities you need versus what is available on the offshore market. Buying and selling stocks and shares on major markets is relatively simple. But if your investment and research skills dictate that you need to trade a specific commodity on a specific market in real time then the search for the right brokerage becomes
As an example of what’s available, I’ve recently been working with and referring clients to a European-owned brokerage house in Panama which welcomes accounts from offshore companies and focuses on cutting edge technology. They offer for example from a stocks and options point of view:
- US American Stock Exchange
- US NASDAQ
- US New York Stock Exchange
- UK London Stock Exchange
- France Euronext Paris
- Germany Xetra
- Switzerland Swiss Exchange
- Switzerland Virt-X
And many other International Exchanges available by online chat or telephone.
If you would like to receive further information on this package, please send your request to [email protected]
Written by Peter Macfarlane
Leave A Comment or Question