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Starting a Forex Signal Service

by dimadima
12 replies
Hello!
I want to provide forex signals/and technical analysis to the victors of my website. I wonder how to set this up so that there will be no legal problems in the future? Do you think I can set this up with an offshore company and a Latvian bank account to receive the recurring monthly fees by PayPal or CCBILL bank wires (via the site script called “Amember”)? I also initially thought about incorporating in UK – the UK presence would give needed credibility to this service – but I guess the compliance requirement by the local FSA is just unbearable for a startup. Please recommend the way this can be done in the most effective manner,
Thank you!
Dave
#forex #service #signal #starting
  • Profile picture of the author Benjamin T
    Consult a lawyer. The financial sector is such a regulated field that you'd do well to get professional advice towards the legality of what you're offering.

    On another note, as someone who regularly invests (although I'm not into Forex), I can tell you that you'll need quite the set of credientials to convince anyone to subsribe to your service. Perhaps even a track record of your successes.

    Part of that might even come into play when you consider the legality of your services. For example, in order to be a financial broker (most commonly a "stock broker"), you have to be licensed... you can't just decide you're going to start offering financial advice.

    Now you may be able to pitch your business as "purely educational" and you could avoid a lot of those legal barriers to provide your services, but you'd really have to prove that what you offer is for learning and not for actual trading.

    Hope this helps,
    Ben
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  • Profile picture of the author dimadima
    thank you very much for your reply. Yes I have been thinking of turning it all into a purely educational material but I would still provide trade setup analysis with detailed breakdown of the reward/risk parameters of various trade opportunities - in the sell or buy form...this can still be understood as investment advice of some sort. Therefore I am thinking of incorporating in a country least regulated in this regard. Do you know of anyone in Europe? Cyprus maybe?
    Thanks!!!!!
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  • Profile picture of the author OnlineAddict
    CCbill won't accept you as a forex service seller. Other than that, there is no legal requirements other than having a risk disclaimer on your website. You don't need to hide under various offshore companies and set ups. Unless you are in the US, then consult a lawyer, because the government is tough on forex lately.
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    • Profile picture of the author dimadima
      Originally Posted by OnlineAddict View Post

      CCbill won't accept you as a forex service seller. Other than that, there is no legal requirements other than having a risk disclaimer on your website. You don't need to hide under various offshore companies and set ups. Unless you are in the US, then consult a lawyer, because the government is tough on forex lately.

      Yes. I woudl provide the disclaimer that the material is provided as a general market commentary and does not constitute an investment advice..You think that in this case it can be safe to incorporate somewhere in EU - like UK or Cyprus?

      Thanks for your note regarding CCBIll - you have tried to register a forex product with them before?
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      • Profile picture of the author OnlineAddict
        Originally Posted by dimadima View Post

        Yes. I woudl provide the disclaimer that the material is provided as a general market commentary and does not constitute an investment advice..You think that in this case it can be safe to incorporate somewhere in EU - like UK or Cyprus?

        Thanks for your note regarding CCBIll - you have tried to register a forex product with them before?
        Yes, I asked CCbill already. Why would you want to incorporate in EU? Didn't the Cyprus bank massacre tell you enough? Stay away from communistic places, incorporate offshore, Carribean or Asia.
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        From1toMillion Forex EA
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        • Profile picture of the author dimadima
          Yes...you are right - Cyprus bank crisis was a very education example...Still I want to project a professional and European image - not of a south American offshore shop....or I can combine the offshore company with just EUROPEAN POSTBOX (eg London postbox) and a local phone number which can divert incoming calls to me?
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          • Profile picture of the author OnlineAddict
            Originally Posted by dimadima View Post

            Yes...you are right - Cyprus bank crisis was a very education example...Still I want to project a professional and European image - not of a south American offshore shop....or I can combine the offshore company with just EUROPEAN POSTBOX (eg London postbox) and a local phone number which can divert incoming calls to me?
            Trust me, traders don't care if your company is from Germany or Venezuela(just an example). They only care about the results you can show them, consistent, long term results...thats what you should worry about, nothing else.
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            From1toMillion Forex EA
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            • Profile picture of the author dimadima
              Originally Posted by OnlineAddict View Post

              Trust me, traders don't care if your company is from Germany or Venezuela(just an example). They only care about the results you can show them, consistent, long term results...thats what you should worry about, nothing else.

              Yes. you are correct for sure. We are going to offer not only signals but comprehensive market analysis based on proprietary methods of analysis that do NOT exist elsewhere.,....therefore I wish to make sure the legal structure reflects this fact - namely it should be at the very least be a European company....cannot think of a Belise company with much investment know-how...) you would trust such a company????
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              • Profile picture of the author OnlineAddict
                Originally Posted by dimadima View Post

                Yes. you are correct for sure. We are going to offer not only signals but comprehensive market analysis based on proprietary methods of analysis that do NOT exist elsewhere.,....therefore I wish to make sure the legal structure reflects this fact - namely it should be at the very least be a European company....cannot think of a Belise company with much investment know-how...) you would trust such a company????
                I would follow their analysis and then decide if they are trustful or not, I wouldn't even check where they company is registered. 99% of all visitors on the website will never know and never even think about it. What if you realized that forexfactory.com is registered in Belize? Will you stop going there?
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                From1toMillion Forex EA
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                • Profile picture of the author dimadima
                  Yes they are a great site but they do not provide paid service. BTW - they are registered in Belise?)
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                  • Profile picture of the author OnlineAddict
                    Originally Posted by dimadima View Post

                    Yes they are a great site but they do not provide paid service. BTW - they are registered in Belise?)
                    No, it was just an example. If you offer a paid service, nobody will care about your company details, but your payment gateway. If you use paypal, clickbank or any other well known payment gateway, people will know they can always ask for a refund, if its a scam, so thats going to be their main worry. Even if you had your home address listed on the website, everybody knows its not worth to sue someone over a few dollars, so having your information won't make them feel safer. A trusted payment gateway will make them feel safer.
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                    From1toMillion Forex EA
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  • Profile picture of the author Duane Harris
    Or partnering up with someone … like newjetlife.com oh you could do is white label … create a specialized list via offering a Forex product and do it via email marketing to your Forex List.

    For example if information cost you $25 per month you can turn around and sell it for $100 or whatever you feel the value of the information is worth. have 1k peep and you have a recurring passive income flow of 100,000 per month just off 1k clients.

    Keep in mind it would take some time if you don't have a Forex list.

    100k off 1000 people? shoot and that doesn't even include the upsell but when you get to this level you can over deliver by opting in the high price program and turn around and repackage it to your network.

    Building an investment advisory site that is membership basis shouldn't be hard. Just check the laws in regards to an educational site. IF you don't take $ for investment then you should be ok. Because you are handling that part off to the broker that actually does the trades on your behalf.

    I can recommend a good brokerage firm that you can sign up - hit me up via inbox if you would like more information.

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