Legal structure prop firm in Europe

Z

Zeddy

Any views on selecting / comparing various structures for setting a small prop shop based in Europe, 3-5 experienced traders, own capital, no external client money initially until track record established. Trading global stocks, ETFs, futs & options? I have heard that a Malta PIF might be best low cost choice with respect to efficient tax and good legal protection?
 
Are you looking to trade in a "customer" account or as a regulated entity? You can choose the country of your choice for tax purposes, but if you choose a country with loose AML laws, you might find it difficult to open an account at the broker of your choice.
 
Prop firm would be EU based, likely Spain where other prop shops exist, staffed by EU traders so AML don't see as an issue. Opening an IB account easy, I would consider applying to become a regulated entity if it made doing business easier, what structure did you have in mind and would it be tax efficient with respect to CGT vs income tax?
 
I can't advise you on the tax issue. I would avoid being regulated as much as possible, if this will be a trading group backed by investors. If your focus is on profits, I don't see the advantage of being regulated. If you are building a prop firm to focus on commissions, you need to be. From your description, IB sounds like a good place to start. I can only offer other choices if you have the capital required for two separate accounts. One at an FCM and one at a securities clearing broker.
 
Zeddy said:
Prop firm would be EU based, likely Spain where other prop shops exist, staffed by EU traders so AML don't see as an issue. Opening an IB account easy, I would consider applying to become a regulated entity if it made doing business easier, what structure did you have in mind and would it be tax efficient with respect to CGT vs income tax?
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Are you sure that exist prop shops in Spain? Could you tell me the name of any?
 
Zeddy, cant pm you, if you are reading this, send me pm please.

have the same problem. Did you find best solution ?
 
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