Moving to Liechtenstein Forums

Work From Home Business Opportunity

AJC — Tue Jun 16, 2009 10:59 am

Author: AJC

Posted: Tue Jun 16, 2009 10:59 am

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You set your own schedule, you work from anywhere you choose. No travel, no week-ends.

Our product line features 3 products ranging from an upscale Personal Development course to high level life coaching seminars.
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lambas — Sat Mar 17, 2007 6:59 pm

Author: lambas

Posted: Sat Mar 17, 2007 6:59 pm

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annateklinska — Wed Feb 21, 2007 10:45 am

Author: annateklinska

Posted: Wed Feb 21, 2007 10:45 am

Visitopia is a commercial community travel website where we give everyone the opportunity to share information with each other. Here’s where you come in!

For the represented cities on our website we need franchisers to manage the writers for that city page. When you live in a city and you know a lot about it, you could make money by managing the writers and information for that city. We are a growing company, so therefore we could always use new city franchisers from all over the world. The franchiser will be responsible for the quality of the continuous information stream, written by the city writers. This could be a good opportunity to develop your managing skills and you will get direct feedback from the site visitors related to the bookings made on your city bookings page.

If you are interested in this job or know someone who might be interested, please feel free to mail Visitopia at info@visitopia.com or join our Visitopia MySpace page.

Thanks for your interest in Visitopia.com!

EMPLOYMENT IN LIECHTENSTEIN (Getting a Job)

Liechtenstein Information — Fri Oct 13, 2006 7:47 am

Author: Liechtenstein Information

Posted: Fri Oct 13, 2006 7:47 am

EMPLOYMENT IN LIECHTENSTEIN (Getting a Job)

Job chances for foreigners in Liechtenstein

For most foreigners, Liechtenstein appears to be a paradise for working conditions. Liechtenstein employees enjoy some of the highest salaries in the world. Despite widespread job losses in Liechtenstein during the early 1990s recession, unemployment is still among the lowest in Europe.

Regarding the employment of foreigners, Liechtenstein is known for restrictive immigration policies and work permit quotas. Even though the system may seem complicated at first glance, finding a job in Liechtenstein isn’t as difficult as official Liechtenstein policy may lead you to believe. And the good news is that, according to Liechtenstein law, foreign workers have to be employed under the same salaries and work conditions as Liechtenstein citizens.

After 2007, a European citizen will have complete freedom of employment in Liechtenstein. At the same time, requirements for non-EU-citizens wishing to work in Liechtenstein have become stricter.

Languages

As in any foreign country, speaking the local language is a definitive advantage. For your job search, consider the main local language in the area where you wish to work.

If you’re aiming to work in an international institution or large multinational company, much of the work may be conducted in English with other non-Liechtenstein nationals. However, for national or smaller Liechtenstein companies, you will almost certainly be required to have a basic command of the local language. The level of language required will depend on the nature of the position and what sort of work you will be doing.

Recognition of diplomas

Many professions and jobs in Liechtenstein are regulated and/or require some formal qualifications. For many trades and professions, foreign qualifications are recognized as equivalent if the training is similar to the Liechtenstein qualification.

The best way of searching for jobs in Liechtenstein

There are many ways and places to look for a job in Liechtenstein. Many can be contacted before you arrive.

Newspapers & Magazines:
Job offers (Stellenmarkt - offres d’emploi) can be found in the classified sections of daily newspapers, in weekly newspapers, monthly magazines (city magazines) and specialized trade magazines and journals. For a fee, you can also place a situation wanted advertisement in many job sections, although you may find this quite ineffective.

Internet:
Online recruitment websites (Jobsbörsen - sites web d’emploi) allow you to make customised job-searches where you can specify the sector and even the region where you wish to work. Among the countless active job-hunting websites, there is an increasing number of sites with an interactive research option (online posting of CV, standard letters of application, job mailer, etc.).

Employment agencies:
Employment agencies play an important role in the Liechtenstein recruitment market. However, many agencies only work with candidates that are Liechtenstein citizens or foreigners with a B or C residence permit. An employment agency cannot apply for a residence and work permit on your behalf; this can only be done by a prospective employer.

Career fairs:
A good way to get on overview of the Liechtenstein job market is to visit a career fair. Fairs usually host a range of employers, often concentrating on a specific sector or industry. For many fairs, you have to apply in advance by sending in your CV. Employers will then get the CVs in advance and decide on whom they want to meet. Besides getting general information on employment perspectives in different companies, it is often also possible to arrange interview in advance.

Speculative applications:
If you are interested in working in a specific company, you can also send a speculative application. This should be addressed to the person responsible for recruitment of the head of the human resources department (Personalabteilungsleite - Directeur de Ressources Humaines). Some personnel departments file these applications, and if job positions become available they check these applications before advertising the position or contacting state employment offices.

Chambers of Commerce:
You can also contact the office of the chamber of commerce of your home country in Liechtenstein (if there is one). Chambers of commerce sometimes receive requests from companies trying to fill out a position with someone from a specific country, and some even have a database of open job positions.

EU citizens searching for jobs

For job searches up to 3 months, EU citizens don’t need a residence or work permit. If your search lasts longer, you have to apply for a residence permit for another 3 months. These permits are not subject to quotas and provide no access to the Liechtenstein social security system. As an EU citizen, you can also use some search options that are not available to other nationalities.

State employment agencies:
While you are still a job-seeker, you have the same right to assistance by the employment agencies as Liechtenstein citizens. In order to get that assistance, you have to register at the regional employment office (ORP - Office Régional de Placement).

EURES:
The EURES network is a partnership between the state employment services in the EU (European Union) / EEA (European Economic Area) to support free movement of workers. Liechtenstein has joined the EURES network. The network facilitates the circulation of vacancies and enables access of up-to-date information on living and working conditions in each EU/EEA member state via a computer network.

The EURES network has 500 specially trained staff throughout the EU/EEA who administer the EURES system. These ‘Euroadvisers’ specialize in the practical issues surrounding employment in the member states, and can assist workers and employees who wish to start a career abroad and help companies and employers to find suitable employees from all over the EU/EEA.

Salaries, working hours and annual leave

Liechtenstein has a very high costs of living when compared with countries in the European Union, but also relatively high levels of pay. However, be prepared to work a lot for your money!

Most surveys estimate that salaries (Gehalt - salaires) for both skilled and unskilled workers in Liechtenstein are generally two or three times higher than in most other European countries.

Based on an average of all fields, real wages have increased very little since the beginning of the 1990s.Pay levels vary greatly according to the different economic areas. In certain sectors, such as finance and insurance, wages are significantly higher than in others.

Determining your salary

In most cases, salaries are negotiable and it’s up to you to make sure that you receive an appropriate salary for your qualifications and experience. However, you need to bear in mind that in Liechtenstein wages are established according to the principle of seniority. Many Liechtenstein companies are reluctant to pay a young person (e.g. around 30) a top salary, irrespective of their qualifications or experience.

Minimum salaries exist in all trades and professions. During the last decade, employers in both the public and private sectors have increasingly adopted performance-related pay systems.

Salaries are usually reviewed once a year in November or December, with pay rises taking effect from 1st January of the following year. Most employers pay out a 13th monthly salary payment in December.

Working hours

Your working hours (Arbeitsstunden - horaire de travail) depend on your employer, your job and the industry you work in. They are usually stated in your employment contract (Arbeitsvertrag - contrat de travail).

Liechtenstein law fixes the maximumwork time to 45 hours per week for industrial workers, office personnel, technical personnel and other employees, including sales personnel in large-scale retail. For all other workers, the limit is fixed at 50 hours.

Flexible time management

Many Liechtenstein employers allow people to work flexible hours (Gleitzeit - horaire flexible), especially in manufacturing industries. The day is then divided into different blocks, which are shifted between employees. A block can start at 7.00 am (which isn’t early by Liechtenstein standards).

In principle, your employer can use any type of flexible time management. However, they must respect legal requirements (time off, breaks, official holidays, days off per week, ban on night shifts and work on Sundays, etc.). The employer must also consult workers before planning schedules and take into account the workers’ needs wherever possible.

Overtime

Overtime (Überstunden - heures supplémentaires) is defined as the hours exceeding the agreed amount of working hours (while remaining below the maximum weekly amount of work determined by the Labour Act). It is normally paid at 125% of the normal rate or compensated in the form of time off in lieu. If you have a managerial position, you probably won’t get paid extra or receive extra holidays.

Annual leave

Liechtenstein law guarantees workers the right to holiday leave; the minimum amount required by law is:

* four weeks for workers and apprentices over 20 years old
* five weeks for workers and apprentices up to 20 years old

This minimum length of holiday may be extended through contractual agreements. Most companies only offer a fifth week of vacation to employees who have attained a certain number of years of service and/or having reached a certain age.

The length of holiday in excess of the legal minimum can be reduced in the event that the worker is unable to work for an extended period of time because of illness, takes non-paid vacation, etc.

As a general rule, annual leave must be granted during the corresponding year of service and must include at least two consecutive weeks. You will be paid your full salary for during holidays. For as long as the employment relationship continues, holiday cannot be replaced by payment or other benefits.

DOING BUSINESS IN LIECHTENSTEIN

Liechtenstein Information — Fri Oct 13, 2006 7:19 am

Author: Liechtenstein Information

Posted: Fri Oct 13, 2006 7:19 am

DOING BUSINESS IN LIECHTENSTEIN

Business entities in Liechtenstein

The following forms are possible:

1. Company limited by shares

(a) General
EU-Law is applicable. Therefore, the legislation regarding companies limited by shares is not substantially different from other EEA-countries or EU-countries. Depending on the size of the company, different obligations exist regarding annual accounts, publications etc.

(b) Authorisation required
Offshore companies need no authorisation. Onshore companies depending on their intended activity either have to obtain a permit or solely are obliged to inform the competent government authority which business they commence.

(c) Name
Basically, any name may be used unless the same or a very similar name has already been registered in the Public Register. A company name must contain at least three letters.

(d) Availability of companies
The formation and registration of a company limited by shares is basically possible within one week.

(e) Share capital
The capital of a company limited by shares must be paid up to at least 20 per cent and at least CHF 50,000 in cash or contributed assets.

(f) Shares
The shares may be bearer or registered shares. Bearer shares, however, may only be issued if and when the full nominal value of the shares has been paid up.

(g) Increase in capital
The capital needed for the increase may be paid in as cash or as assets by the old and possibly new shareholders or be furnished from the company’s own resources.

(h) Reduction in capital
A repayment or reduction of the share capital on account of losses may only be carried out when the liquidation balance-sheet shows that the liabilities are covered by the assets.

(i) Shareholders
A company limited by shares may be formed by two or more persons who may be either individuals or corporations. The shareholders do not have any other obligation than the paying in of the share capital. The person(s) acting as founder-shareholder(s) may also be wholly or partly trustee(s). Shareholders do not need to be recorded in the Public Register.

(j) Meetings
The General Meeting of the shareholders is the highest executive body of the company and its decisions are binding for both the shareholders and the executive bodies.

In accordance with the law, its powers include:

* appointment and release of the Directors and of the Auditors
* approval of the Balance Sheet and Profit and Loss Account and the distribution of the dividends
* dissolution of the company

The Ordinary General Meeting must take place annually within six months of the closing of the financial year.

(k) Directors
The Board of Directors may consist of one or more persons who need not be shareholders of the company. The Board of Directors transacts all business and decides in all matters which are not expressly assigned to any other body either by the articles or by law.

Companies limited by shares which benefit from the offshore status (tax privilege) have to have at least one director who is resident in Liechtenstein.

The General Meeting may at any time remove members of the Board of Directors and appoint new members.

(l) Representative / Registered Office
The representative entered in the Public Register is the person authorised to accept services on behalf of the company limited by shares. He has the authority to make declarations to and receive communications of any kind from all national authorities and courts. A representative is compulsory where more than half of the directors are not resident in Liechtenstein.

(m) Object of company
In most cases, the purpose of a company limited by shares is the performance of a trade, manufacturing or other commercial activity; it may also act as a holding company.

(n) Audit
The General Meeting must appoint auditors.

(o) Information on public record
Anyone can demand an extract from the entry in the Public Register containing the following information:

* name of company
* registered office
* date of articles of association
* object
* share capital
* nominal value or quoted price of shares and the paid up capital
* type of shares
* name and address of the Board members
* authorised signatories
* signatory rights
* act of notification

2. Foundations

A foundation may be defined as trust with an own separate legal personality. With this, it is separated from the founder’s personal assets and henceforth forms the assets of an independent legal entity.

The foundation may be formed by natural or juridical persons, citizens of Liechtenstein or foreigners by the donation of assets for a specific purpose. The donation may be made:

* in the form of a deed (unilateral, legal transaction, inter vivos)
* by last will and testament
* by inheritance agreement

The minimum capital of a foundation shall amount to CHF 30,000 and shall be donated by the founder upon formation. The participants in a foundation are the founder, the foundation board or council and the assignees or beneficiaries.

Once the foundation has been set up, the founder no longer has the status of a body of the foundation unless he is a member of the Council. The foundation bodies shall not have a determinatory function. The beneficiaries shall be appointed by the founder or by the competent body determined in the foundation deed, the Statutes or in an implementation clause. In practice, beneficiaries are usually appointed in an implementation clause which may be revocable or irrevocable.

If provision is made accordingly in the foundation statutes, a foundation may be converted into an establishment or a trust enterprise.

3. The establishment (Anstalt)

The Anstalt is a legal form with a separate legal personality which allows the founder to organise it in a very flexible way. Therefore it is possible in specific cases to organise it similar to a foundation and in others similar to a company limited by shares.

In practice, the normal form which the Anstalt takes is that of a non-share company, i.e. the capital is not divided into shares or parts. The rights of the supreme body are vested in the founder. He possesses the same rights as the general meeting of companies limited by shares. An Anstalt may be founded either by an individual or a corporation. Only one founder is required and there are no legal stipulations regarding nationality or place of residence. An Anstalt may also be established for a third party by power of attorney or by trusteeship. The minimum capital requirement is CHF30,000. — if the capital is not sub-divided into parts or shares and CHF.50,000. — if the capital is divided into parts or shares. The minimum capital requirement must be fully paid up at the time of formation.

The Anstalt must be registered in the Liechtenstein Public Register. The bodies of the Anstalt are the owner of the founder rights as supreme body, the Board of Directors, and the Auditors.

The Board of the Anstalt may comprise one or more individuals, but at least one member must fulfill the legal requisites and qualifications in order to act as director. The Board of Directors transacts all business and has the power of decision in all matters which are not expressly assigned to any other body either by the articles or by law.

Auditors must be appointed if the Anstalt’s objects include trade or business activities.
The law allows that the owner of the founder’s rights appoints beneficiaries which may be different from him. If no beneficiaries are specifically nominated, the owner of the founder rights is the beneficiary.

4. Limited company (Gesellchaft mit beschränkter Haftung [GmbH])

The main difference towards the company limited by shares is that a GbmH may be formed by one single person.

5. Branch of a foreign company

The registration of a branch of a foreign company in the Liechtenstein Public Register is subject to the same regulations as Liechtenstein companies.

However, it is a condition of registration that a business branch with an independent business management is actually established in the country. For the registration of the branch, a reference to the registration of the parent company is also necessary.

Recognition of trusts

Liechtenstein is the only country in continental Europe to have dealt with the institution of the trust (common law trust) by statute law. Unlike the Anglo-Saxon trust, Liechtenstein law does not contain any prohibition of accumulation of income or any rule against perpetuities, therefore allowing the creation of a trust with an unlimited duration. A trust is established when a natural or legal person (author, settlor, trustor) transfers an asset, object or a right (trust property, trust res) to the trustee, who will thereafter in accordance with the provisions of the trust instrument hold or make use of the trust property in relation to all others in his own name as an independent legal owner on behalf of one or more third parties (beneficiaries, cestui que trust). No new legal person is created when a trust is formed.

Establishing an office in Liechtenstein

It is necessary to distinguish between onshore and offshore companies. The only difference from the permitted field of activity is that offshore companies are not allowed to sell their goods or to supply their services to Liechtenstein persons or entities.

(a) Onshore companies
Any citizens and/or residents of Liechtenstein, Switzerland, Norway, Iceland or any of the EU countries may establish an office in Liechtenstein. Other citizens only may do so when they are resident in Liechtenstein. In practice, the process of establishment is not complicated.

(b) Offshore companies
Offshore companies only may be formed by licensed Liechtenstein fiduciaries. The process of formation takes about 2-3 days. At least on licensed Liechtenstein fiduciary or attorney at law (Liechtenstein Professional) has to be a member of the board of an offshore company.

Immigration

One might think that it must be very easy for citizens of an EU country to take up residency in Liechtenstein (freedom of residency within the European Economic Area). However, this is not the case, because Liechtenstein managed to negotiate special treatment with the EU. This special treatment is valid until the end of 2007 and then will be reconsidered. Therefore, it still is very difficult to become resident in Liechtenstein.

Confidentiality

Liechtenstein law offers corporate structures permitting confidentiality to the clients. Also, banking and professional secrecy provisions exist. Although, in cases of money laundering and / or other criminal offences Liechtenstein Professionals may be forced by court order to supply information. If a Liechtenstein Professional has suspicion that an entity or trust he administers might be involved in illegal activities he is even obliged to notify the competent governmental authority. The same applies to Liechtenstein banks concerning bank accounts undertaken with them.

Taxation in Liechtenstein

Liechtenstein tax law includes the following principal taxes:

* wealth tax
* income tax
* corporation taxes
* capital and profit tax
* special corporation tax
* dividend tax (coupon tax)
* property transfer tax
* inheritance tax
* car tax
* value added tax (VAT)
* stamp duty

Direct taxation

(a) Individuals
Natural persons residing in the country are subject to a progressive wealth and income tax. Capital yields such as interest, rent, dividends, etc. are tax-free but capital gains fall under the wealth and income tax. The maximum rate payable under this tax is 17%.

(b) Corporations
In principle, all companies or enterprises which carry on any trade or business conducted on commercial lines in Liechtenstein itself (onshore companies) are subject to capital and profits tax.

Capital tax
The basis of capital tax is the paid up ordinary or contributed capital, plus the accumulated reserves. The rate of tax is two per thousand of the taxable capital at the end of the financial year. An increase in capital (either by legal increase of capital or by an increase in reserves) during the year is not subject to tax in the year in which the increase took place.

Profits tax
Profits tax is calculated on the net income of the business year, including capital and liquidation profits. Taxes paid, with the exception of dividend tax (which is to be abolished anyway, see thereto below), are deductible from the net yield. The rate of profits tax is equal to half of the percentage that the net yield accounts for as a percentage of the taxable capital, but is a minimum of 7.5% and a maximum of 15% of the net profit. The profits tax rate is subject to an increase of between 1—5% if the dividend payments of the company exceed 8% of the taxable capital. The highest increase of 5% applies if payment exceeds 24% of the taxable capital.

Dividend tax (coupon tax) [presumably to be abolished in 2001]

This tax is levied at source on distributed income such as dividends, profit sharing and other monetary payments. It affects only those companies whose capital is divided into shares and normally applies only to limited companies.

The rate of dividend tax is 4%. The tax is not levied on establishments (Anstalten) and trust enterprises if their capital is not divided into shares

(c) Deductions and other adjustments
The legally permissible depreciation rates are governed by a decree on tax legislation and amount to 3 — 35% depending on the assets in question. Interest payments generally are considered as operating costs. Regarding interest payments to related parties the allowable tax rate is fixed by the tax authorities annually. There are no regulations concerning a ‘debt equity ratio’. Wages and salaries of workers and employees are considered as operating costs. If a shareholder or a person who has close connections with the company is employed by the company, his remuneration is to be fixed according to his position and responsibilities. The regulations concerning reserves are likewise governed by a decree on taxation. This rules the provisions to be made for stocks, debtors, anticipated losses, etc.

(d) Tax privileged status

Tax privileges
In Liechtenstein, as in many other countries, holding companies and domiciliary enterprises (offshore entities and trusts) enjoy special tax privileges. These comprise:

* exemption from all taxes on assets and income
* reduction in capital tax
* complete exemption from all taxes on profits
* absolute secrecy concerning tax matters

Capital tax
Capital tax is levied, without regard to the form of the entity or trust, at the rate of one per thousand on the capital plus reserves but at a minimum of CHF 1,000 per year (reduced rates for foundations, captive insurance companies and investment funds). Capital tax is payable yearly in advance. In practice, offshore entities and trusts pay CHF 1'000 tax per year.

Profits tax
Liechtenstein offshore entities and trusts in principle are not subject to profits tax. If, however, such companies hold an interest in a commercially active Liechtenstein company or unit, the capital thus invested and the profits thereon will be subject to taxation in the same way as for operating companies.

(e) Taxation of trusts
If the assets of a trust are foreign assets, an annual capital tax of 1% but at least CHF 1,000 — is due (in practice, all trusts pay CHF 1,000 – tax p.a.). Beneficiaries resident or domiciled outside Liechtenstein are not subject to tax on the distributions they receive from their beneficial interest. No taxes are due in Liechtenstein either from the transfer of assets when the beneficial interest is conceded or terminated for other reasons.

(f) Withholding taxes
Liechtenstein tax legislation makes no provision for withholding taxes. Although, the 4% coupon tax may be considered as withholding tax.

(g) Double taxation treaties
Apart from a double taxation convention concluded with Austria, the Principality of Liechtenstein has concluded no such agreement with any other country.

(h) Credit for overseas taxes
In the absence of double taxation treaties, Liechtenstein offshore companies cannot claim in Liechtenstein for taxes paid abroad. Ordinarily taxed Liechtenstein companies may claim exemption for profits which were already taxed abroad.

Estate duty, inheritance and gift taxes

Inheritance tax and estate duty
If a person resident abroad inherits assets in Liechtenstein, it must first be established whether these are movables or immovables.

The inheritance of movable assets located in Liechtenstein (e.g., shares, bank accounts, etc.) is only subject to taxation in Liechtenstein when the last place of residence of the deceased was in Liechtenstein.

In contrast to this, the inheritance of immovable property located in Liechtenstein is subject to Liechtenstein taxation irrespective of the last place of residence of the deceased.

The rate of inheritance tax applicable is calculated from the total estate and is between 1.5% and 27%, depending on the degree of relationship and the value of the total estate.

Gift taxes
Since gift taxes have to be paid by the person receiving the gifts, persons residing abroad do not have to pay gift taxes in Liechtenstein.

Indirect taxes

(a) Stamp duty and turnover duty
Stamp duty is levied at the time of the formation on the capital of companies and on capital increases of companies. There exists a free amount of CHF 250,000. The tax rate is 1%.

For companies limited by shares, turnover duty (0.3%) may become due if such a company is holding participations in the value of more than CHF 10 Mio. The taxation system is the same as in Switzerland. This tax does not apply for other company forms.

(b) Value Added Tax (VAT)
The rate of Liechtenstein VAT is 7.6%. The VAT system is the same as in Switzerland.

Social security contributions

The contribution for social security is 11.336%. The employer contributes 6.936% and the employee has to contribute 4.4%.

Exchange control

By virtue of the Customs Treaty with Switzerland, there are no exchange controls or they are the same as in Switzerland.

FX Currency Trading / FX Forex Trading Online - Know More

admin — Tue Aug 29, 2006 5:59 am

Author: admin

Posted: Tue Aug 29, 2006 5:59 am

Forex Trading / FX Trading

Foreign Exchange
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as bull market to better acquaint you with some of the risks and opportunities in the largest and most liquid market in the world.

As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.

Overview
Foreign exchange , forex or just Forex are all terms used to describe the trading of the world's many currencies. The forex market is the largest market in the world, with trades amounting to more than $1.5 trillion every day. This is more than one hundred times the daily trading on the NYSE (New York Stock Exchange) . Most forex trading is speculative , with only a few percent of market activity representing governments' and companies' fundamental currency conversion needs.

Unlike trading on the stock market, the forex market is not carried out by a central exchange, but on the "interbank" market , which is thought of as an OTC (over the counter ) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the forex market is a 24-hour market.

Trading Forex
A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the Euro/US Dollar, or the GB Pound/Japanese Yen.). The most commonly traded currencies are the so-called "majors" - EURUSD, USDJPY, USDCHF and GBPUSD.

The most important forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled "immediately" or on the spot. In practice this means within two banking days.

Trading on Margin
Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually done with relatively little margin since currency exchange rate fluctuations tend to be less than one or two percent on any given day. To take an example, a margin of 2.0% means you can trade up to $500,000 even though you only have $10,000 in your account. In terms of leverage this corresponds to 50:1, because 50 times $10,000 is $500,000, or put another way, $10,000 is 2.0% of $500.000. Using this much leverage gives you the possibility to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.

Why trade Forex?

24 hour trading
One of the major advantages of trading forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
Superior liquidity
The forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and low spreads . The liquidity comes mainly from large and smaller banks that provide liquidity to investors, companies, institutions and other currency market players.
No commissions
The fact that forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis. Trading the "majors" is also cheaper than trading other crosss because of the high level of liquidity. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.
50:1 Leverage
With a minimum account of USD 10,000, for example, you can trade up to USD 500,000. The USD 10,000 is posted on margin as a guarantee for the future performance of your position.
Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the U.S. dollar gets stronger against the Euro and vice versa. So, if you think the EURUSD will decline (that is, that the Euro will weaken versus the dollar), you would sell EUR now and then later you buy Euro back at a lower price and take your profits. The opposite trading scenario would occur if the EURUSD appreciates .

Important Forex Trading Terms

Spread
The spread is the difference between the price that you can sell currency at ( Bid ) and the price you can buy currency at ( Ask ). The spread on majors is usually 5 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.
Pips
A pip is the smallest unit by which a cross price quote changes. When trading forex you will often hear that there is a 5-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9880. The difference is USD 0.0005, which is equal to 5 "pips". On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is the cancel-out the four zeros on the amount you trade and you will have one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.

Trading Scenario - Trading Rising Prices
If you believe that the Euro will strengthen against the dollar you'll want to buy Euro now and sell it back later at a higher price.

You buy Euro	We quote EURUSD at Bid 0.9875 and Ask 0.9880, which means that you can sell 1 Euro for 0.9875 USD or buy 1 Euro for 0.9880 USD. In this example you buy Euro 100,000, at the quote price of 0.9880 (ask price) per Euro.
The market turns	Later the market turns in favour of the Euro and the EURUSD is now quoted at Bid 0.9894 and Ask 0.9899.
Now you want to sell your Euro and get the profit	You sell Euro at a Bid price of 0.9894.
The profit is calculated as follows:	Sell price-buy price x size of trade (0.9894 minus 0.9880) multiplied by 100.000 = $140 Profit (Note that the profit or loss is always expressed in the secondary currency )

Trading Scenario - Trading Falling Prices
If, on the other hand, you believe that the Euro will weaken against the dollar, you'll want to sell EURUSD.

You sell Euro	We quote EURUSD at a Bid price of 0.9875 and Ask price of 0.9880 and you decide to sellEuro 100,000 at a Bid price of 0.9875.
The market moves in your favour	The Euro weakens against the dollar and the EURUSD is now quoted at bid 0.9744 and ask 0.9749.
Now you buy back your Euro	You buy EUR at an ask price of 0.9749.
Your Profit/loss is then	Sell price-buy price x size of trade (0.9875 minus 0.9749) multiplied by 100.000 = $ 1260 Profit

Remember that trading EUR 100,000 as we have done in our examples, does not mean that you have to put up Euro 100,000 yourself. It means that you have to deposit 2.0% of Euro 100,000, which is Euro 2,000 on margin as a guarantee for the future performance of your position.

Further Reading
To see how you can trade the forex market and benefit from our toolbox of information and live quotes, please proceed to our Forex Quick Start found under the Trading menu on the toolbar, under Forex.

Glossary

Appreciation	Anincrease in the value of a currency.
Ask	Theprice at which you can buy. Traders also speak of an ask price,the price requested. This usually indicates the lowest price aseller will accept.
Basecurrency	Thecurrency that the investor buys or sells (i.e. EUR in EURUSD).
Bear	Someonewho believes prices are heading down. A bear market is one inwhich there is a sustained fall in prices and which does not looklike it will recover quickly.
Bid	Theprice at which you can sell. Traders also speak of a bid price,the price offered. This usually indicates the top price apurchaser will pay.
Bid/Ask	TheBid rate is the rate at which you sell. The Ask (or offer) rate isthe rate at which you can buy.
Bull	Someonewho is optimistic about the market. A bull market is characterisedby enthusiastic and sustained buying.
cross	Whentrading currencies, the investor buys one currency againstanother. These two currencies form the cross: for example, EURUSD.
Crossrate	Anexchange rate that is calculated from two other exchange rates.
Depreciation/decline	Afall in the value of a currency.
Exchangerate	Whatone currency is worth in terms of another, for example the $Amight be worth 58 US cents or 70 yen. Currencies traded freely onforeign-exchange markets have a spot rate (applying to tradessettled 'spot', ie, two working days hence) and a forward rate.Countries can determine their exchange rates in a variety of ways:a floating exchange rate system where the currency finds its ownlevel in the market; a crawling or flexible peg system which is acombination of an officially fixed rate and frequent smalladjustments which in theory work against a build-up of speculationabout a revaluation or devaluation; a fixed exchange-rate systemwhere the value of the currency is set by the government and/orthe central bank.
EURUSD	Meansthat you trade EUR against dollars. If you buy Euro you pay indollars and if you sell Euro you receive dollars.
FX,Forex, Foreign Exchange	Allnames for the transaction of one currency for another, e.g. youbuy �100.00 with $150.25 or sell $150.25 for �100.00.
Interbank	Short-term(often overnight) borrowing and lending between banks, as distinctfrom banks' business with their corporate clients or otherfinancial institutions.
Interestrate differential	Theyield spread between two otherwise comparable debt instrumentsdenominated in different currencies.
Leverage(gearing)	Inthis case leverage means that the investor only funds part of theamount traded.
Long	Tobuy.
Longposition	Aposition that increases its value if market prices increase.
Liquid(-ity)	Thecapacity to be converted easily and with minimum loss into cash.Ultra-short-dated treasury notes are an example of a liquidinvestment. A liquid market is one in which there is enoughactivity to satisfy both buyers and sellers.
Margin	Theinitial amount or deposit required when entering into a position.Margin is a guarantee for future performance.
NYSE	Acomputerised system providing brokers with the prices of sharesand securities traded on the New York stock exchange and over thecounter. The quotes are published in real-time.
Openposition	Aposition in a currency that has not yet been offset. For example,if you have bought 100,000 USDJPY, you have an open position inUSDJPY until you offset it by selling 100,000 USDJPY.
"Overthe counter"	Whentrading takes place directly between two parties, rather than onan exchange.
Pips	Apip is the smallest unit by which a cross price quote changes. Soif EURUSD bid is now quoted at 0.9767 and it moves up 2 pips, itwill now be quoted at 0.9769.
Position	Money-market,futures, foreign-exchange and sharemarket traders talk of 'takinga position' which simply means buying or selling one currencycross. 'Position' can also refer to a trader'scash/securities/currencies balance, whether he or she is short ofcash, has money to lend, is overbought or oversold in a currency,etc.
Risk	Tryingto control outcomes to a known or predictable range of gains orlosses. Risk management involves a set of steps which begin with asound understanding of one's business and the exposures or risksthat have to be covered to protect the value of that business.Then an assessment should be made of the types of variables thatcan affect the business and how best to protect against unwelcomeoutcomes. Consideration must also be given to the preferred riskprofile - whether one is risk- averse or fairly aggressive inapproach. This also involves deciding which instruments to use tomanage risk, and whether a natural hedge exists that can be used.Once undertaken, a risk-management strategy should be continuallyassessed for effectiveness and cost.
Secondarycurrency (variable currency or counter currency)	Thecurrency that the investor trades the base currency against (i.e.USD in EURUSD).
Shortposition	Aposition that benefits from a decline in market prices.
Short	Tosell.
Speculative	Buyingand selling in the hope of making a profit, rather than doing sofor some fundamental business-related need.
Spot	ASpot rate is the current market price of an asset.
Spotmarket	Thepart of the market calling for spot settlement of transactions.The precise meaning of 'spot' will depend on local custom for acommodity, security or currency. In the UK, US and Australianforeign-exchange markets, 'spot' means delivery two working dayshence.
Spread	Thedifference between the bid and the ask rate.

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Financial Advisors services, Offshore Fund - Know More

admin — Wed Aug 16, 2006 2:59 am

Author: admin

Posted: Wed Aug 16, 2006 2:59 am

Financial Advisors services, Offshore Fund - Know More

Dear members & guests

Due to the continuous marketing approach of our expatriate community by multiple financial planners services company, Allo' Expat has decided to provided you with some usefull imformation on the Expat Offshore Banking issue. Hope you'll invest wisely..... in the future

Financial Advisors - who are they?

Q1 - How do I get the best offshore financial advice?

The best offshore financial advice is probably given by Independent Financial Advisors. Independent financial advisors (or IFA's, as they are sometimes called) advise their clients on savings, investments and pensions. They may also provide Savings Plans for offshore investing to their clients.

When counselling a client, the best offshore financial advisors should complete the following steps:

* Step 1 - collect detailed information about a client's financial circumstances and requirements ? be they for retirement planning, retirement income, expat investment, or another purpose.

* Step 2 - check all the offshore tax havens for the best offshore plans.

* Step 3 - provide impartial advice as to which plan(s) best meet their client's needs (in the form of a written report).

* Step 4 - arrange for a client to buy the chosen offshore plan(s) on the best terms available.

You may want to complete your own research to ensure you know the right questions to ask your advisor.

When all these stages are completed, you can be confident you have received the best offshore financial advice.

Q2 - What is a Certified Financial Advisor?

Financial advisors may need a license to practice, issued by the Financial Services Regulator in their Country. Only these advisors may be called 'Certified Financial Advisors'.

It may be a condition that prospective certified financial advisors show their Regulator that they are:

* competent to advise

* impartial in their advice

* independent of Providers

* covered by professional indemnity insurance.

So it is important to check that your financial advisor is listed under:

* Certified Financial Advisors, licensed to advise in the Country where you live and

* Independent Financial Advisors - advising on a wide range of offshore plans from a full list of providers.

Now you should feel confident you are receiving the best offshore financial advice.

Q3 - How are offshore financial advisors paid?

Independent financial advisors (IFA's) earn their living from commissions they receive from plan providers. This is their income for the offshore financial advice they give.

The commission that advisors (IFAs) receive from offshore financial advice cases may range from hundreds to thousands of dollars.

Good offshore financial advisors should not be influenced by the amount of commission they receive.

Some clients prefer to pay fees to their financial advisors for advice to ensure impartiality. When this occurs offshore financial advisors refund commission received from a plan provider either in cash or as an increased allocation of contributions invested.

Q4 -How do I find a list of Independent Financial Advisors (IFAs)?

Search the web! Try searching using the search words independent financial advisors or certified financial advisors PLUS the name of the Country in which you live.

Personal recommendations are always helpful - ask your friends if they would recommend their offshore financial advisors. Always check that a recommended advisor is both certified and independent.

Offshore Investing - What do that mean

Q1 - What is Offshore Investing or Offshore Investment?

When we talk about Offshore investing plan opportunities it is like the savings plans available in many countries, except these plans:

* Are registered in tax havens and are regulated by their Financial Services Authorities.

* Can be used for investing by non-residents of the tax havens.

* Are sometimes more tax efficient than or have other advantages over domestic savings plans.

Q2 - Why would expatriates choose offshore investing?

Expatriate investment in the savings plans catalogued here and offering offshore investing opprotunities might be appropriate when:

* No local or Home Country tax free regular savings plans are available.

* No local or Home Country tax free lump sum investment plans are available.

* An expatriate is planning to retire to a third country.

If you fit any of these categories of expatriates you should investigate the offshore plans researched by Offshore Boffin and consult your Financial Advisor.

Q3 - Are there other people who might benefit from Offshore Invesment?

Yes. People who are not living abroad might find offshore investment attractive in the following circumstances:

* They have more cash available for savings than can be invested tax free in their resident countries' investment plans (perhaps because the amount they can invest each year is capped).

* They may live in countries which do not have domestic tax free savings plans.

* They live in countries which are not suitable long-term investment environments for political or economic reasons.

* They wish to limit the effects of inheritance tac on their estates.

Q4 - Is there safe offshore investing?

The answer is that All investors should remember that the value of ALL their investments can go down as well as up!

Safe offshore investing is more likely by choosing plans:

* From politically stable tax havens - the quality of tax havens varies.

* From well-regulated tax havens - the tax havens whose savings plans are catalogued here all regulate their financial services companies to avoid 'fly-by-night' companies.

* From reputable investment management and life assurance companies - whilst past performance is not always a guide to the future, the companies whose savings plans are listed here are all well-known names.

* Investing in 'mutual' or 'collective' funds. these funds are based on a simple idea. If a large number of investors pool their savings in - for example - an equity fund, the larger fund can be invested in shares in many companies, spreading each individual's risk.

For expat investment - and others - to be successful the best offshore investment opportunities must be found. For that you'll need a good Financial Advisors.