Among the services OFC offer, these are included:
- Deposit taking & lending
- Debit and credit card services
- Issuing of financial guarantees and instruments
- Cash management services
- Current accounts
- Checking accounts
- Savings accounts
- Term deposits
- Issuing of CDs
- Wire transfer services
- Payment processing services
- Fund management
- Marketing of investments
There no capital reserve requirements, nor nationality requirements for directors and shareholders. However, offshore finance companies cannot bear the word “ bank” in their name.
Types of Forex Companies
- Online Brokers: online platforms that facilitate forex transactions. By opening an account, the user can buy or sell via the platform. Usually these brokers offer good leverage.
- Offline Brokers: they work without online support. They are a few, due to the popularity the Internet has gained.
- Newsletter providers: they are of great value. Giving useful information on the various nuances of the forex market and include updates. They also include experts opinions.
- Automated trading companies: considered the safest way to invest money, they offer programmed platforms which execute trade commands and stop losses, limit orders and trade updates automatically.
- Forex fund operators: working through the pool of funds from investors and investing from their behalf in the forex market.
- Bureau de change: they are the exchange platforms for currencies. They facilitate the exchange and earn through margins of buying and selling prices.
- Money transfer companies: they charge a commission for helping transfer the money from one place to another.
Offshore Banking License
Offshore banks can be set in a number of leading offshore jurisdictions that offer several advantages. Tax planning and asset protection are some of the many advantages an offshore bank license offers oppose to an onshore. Besides the offshore license allows providing onshore services to clients. There is also a wide variety of licenses, depending on the offshore financial center, and the type of clients and activities the bank is interested in performing.
Offshore Banks are formed to:
- They can optimize payments
- To improve tax planning opportunities
- To avoid excessive regulations of banking activities from National or Central Banks of different countries.
- To keep their funds safe and follow up on the performance of the investment through the bank.
- To provide asset protection through the use of offshore bank accounts.
Offshore Brokerage Companies
Its main objective is to be intermediate between the buyers and the sellers, making the transaction process easier, for each party. They basically offer their clients advice, offering a wide variety of investment vehicles from which the client choose the best option. Usually brokerage companies handle two types of accounts:
Advisory account: the broker has limited decision making on his own.
Discretionary account: the broker is free to make decisions as long as they agree with the clients stated investment goals.
Brokerage companies come in different sizes, forms and offering different services. From a big firm located in major business centers, around the world; to a small office in the city. From bonds to finding suppliers for a hotel administrator.