Interactive brokers? CME group? Advice please.

[bpr]

Depends on the country. I prefer to get an investor's visa so that there won't be any hassle because you get a direct permission for indefinite stay. To get an investor's visa you must invest in the government related companies for a few years, depending on the country. The amount you have to invest varies from 50,000$ to 1million$.

Best countries to move (that I know of):
1) Dubai (needed investment 30 lakhs) -direct entry. No tax for anything.
2)Philippines (variable investment.) - direct entry. Very low tax. Really awesome country because they speak english better than you.
3) Switzerland (best country for rich traders to move in)- fixed 500,000$ tax and the rest of the tax you pay depend on how much you spend.
4)Thailand and singapore (variable investment) -direct entry. Zero tax but low standard of living compared to philippines.
5) Any tax havens - not recommended.


I find only Dubai interesting. It's very straightforward and without tax. More than 20% of the population are also indians. Countries like philippines and thailand has it's own problems. The most safest bet you can get is US or CANADA. Even though you pay around 34% effective tax every year, its worth it. 500,000$ investment in US will get you a direct green card. :clap:.


These are only recommended for traders more than million dollars capital. Or else it's not worth moving to any other country. Keep trading those Nifty options until you get rich.

EDIT: I have just checked Philippines and Thailand's government websites. You have to invest 75,000$ for Philippines and approx 6 lakh rupees for Thailand. (awesome right? )
Check this out. http://www.investorvisa.ae/investor-visa/thailand/

I don't think u have done proper research.

Singapore is not zero tax. If you are a full time trader then most countries where capital gains is 0% tax still considers your income as personal income and tax is applied as such. So it will be upto 21% if individual or upto 18% if Corporation/LLC.

The rest also I think you are missing fine prints.

Anyways if you are serious then u need to hire a professional to evaluate.

 

[tradedatrend]

I don't think u have done proper research.

Singapore is not zero tax. If you are a full time trader then most countries where capital gains is 0% tax still considers your income as personal income and tax is applied as such. So it will be upto 21% if individual or upto 18% if Corporation/LLC.

The rest also I think you are missing fine prints.

Anyways if you are serious then u need to hire a professional to evaluate.

Beside all this there is one more and really important concern.

By the route of investment visa, we wont be a Citizen of those countries.

Would they allow F&O trading to non-citizens? its a big question!

As far india is concerned trading for non-citizens is i dont think possible or at least very difficult norms. Please note for this purpose FIIs are not individual.

 

[C_R_Kumar]

Hi

I talked with their Indian customer support guys of both IB and CME brokers about opening an international margin trading account and its legality.

They say that it's possible to trade with margin. The steps they have given me are:
First, they convert my deposit(INR) in their Indian offices to USD. Then my account can be margin traded as usual in USD. So when I want to withdraw, they convert the USD to INR and and deposit (INR) in my bank account as they have their Indian offices.

When I inquired about paying TAXES, they told me to pay it as general trader tax.

ADVANTAGES: 24 hour trading, access to all markets,insane liquidity,the best margins and regulated account. (they are the biggest international brokers so don't worry about your money being lost :lol

DISADVANTAGES: Kinda illegal. But as I open an account with them in their INDIAN offices, I think it's possible to trade without much hassle.

My conclusions are that it might be worth it. I generally prefer to withdraw once in a month so I'm assuming that it wont be huge trouble. My account will be registered as a cash account (but margin will be provided) and I don't think the taxman checks each and every account of the trader.

Do you guys think it would be a good idea? Is anyone doing that?

If nothing works, I will just move to another country.

Any idea about margin requirements/leverages offered, expenses like brokerage, statutory levies etc.

 

[goldenedge]

Yea, I forgot to update.

1)Thailand and Singapore are taxed based on personal income for individual traders.
2)All of the countries I mentioned allows trading in foreign markets
3) Switzerland taxation is a little bit complex. Check it out if you are interested.
4) Every country gives you visa for stay (if accepted) based on investments. Every country has its own rules.

Regarding USA, what they actually do is pair up twenty to thirty 500,000$ investments. There are companies to do that. You obviously will hire a lawyer to check their track records.

5) They provide a LOT of margin. Leverage is never an issue. Margin requirements will vary by broker. Generally account openings will be around 5000 - 10000 dollars.
6) You can trade using investor visa. I'm pretty sure about this.

Instead of moving, I think it's better to open an offshore company.

 

[tradedatrend]

Yea, I forgot to update.

1)Thailand and Singapore are taxed based on personal income for individual traders.
2)All of the countries I mentioned allows trading in foreign markets
3) Switzerland taxation is a little bit complex. Check it out if you are interested.
4) Every country gives you visa for stay (if accepted) based on investments. Every country has its own rules.

Regarding USA, what they actually do is pair up twenty to thirty 500,000$ investments. There are companies to do that. You obviously will hire a lawyer to check their track records.

5) They provide a LOT of margin. Leverage is never an issue. Margin requirements will vary by broker. Generally account openings will be around 5000 - 10000 dollars.
6) You can trade using investor visa. I'm pretty sure about this.

Instead of moving, I think it's better to open an offshore company.

If you find something fruitful that can be implemented, please share that, i am up with you.

 

[Newbie Day-Trader]

Hi guys, I'm also interested in trading foreign markets, & I'm also considering opening an account with Interactive Brokers but haven't had the heart to go ahead & do it due to legal concerns. As far as RBI rules are concerned, it seems that you can invest in foreign shares but not in margin-products like F&O. I'd be ok with trading only shares but the concern for me is that since RBI says that only "investing" in foreign shares is allowed, I wonder if that excludes intraday trading as a lot of my trades would likely be intraday trades. I also asked my CA recently when I went to him to file taxes but even he didn't know much about the legalities on this issue, so I'm wondering who should people like us approach to find sureshot answers to our questions.

https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10192&Mode=0

5. All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges/ overseas counterparty are not allowed under the Scheme.

6. The permissible capital account transactions by an individual under LRS are:

opening of foreign currency account abroad with a bank;

purchase of property abroad;

making investments abroad- acquisition and holding shares of both listed and unlisted overseas company or debt instruments; acquisition of ESOPs (the Scheme is in addition to acquisition of ESOPs linked to ADR / GDR and acquisition of qualification shares); investment in units of Mutual Funds, Venture Capital Funds, unrated debt securities, promissory notes;

setting up Wholly Owned Subsidiaries and Joint Ventures (with effect from August 05, 2013) outside India for bonafide business subject to the terms & conditions stipulated in Notification No FEMA.263/ RB-2013 dated March 5, 2013;

extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives as defined in Companies Act, 1956.