Quote from volente_00:
But there is still a trail to follow
Just to clarify about how SB accounst work and the offshore aspects of them...
Its not you personally who travels of the offshore island and opens up the account there. lol
And the SB firms arent tiny little foregign companies that vanish every few weeks.
They are like igindex or the best of all EtxCapital.
Companies worth 100s of millions of quid, do exactly what brokers do but provide you with extremely fast to use platforms with guaranteed fills,
and they just hedge everyones trades in the underlying market so its irrelevant to them people make profit or loss,
since they make the same amount of money themself each trade regardless.
(They make their money by charging you a high spread, 2points for ftse, 5points for dow, roughly 8pips for aud/usd, and 12ticks for crude oil,
but when you make your trade on the platform they automatically hedge you in the underlying market where is 3ticks spread instead of 12, so they make the 9ticks profit every trade regardless without actually taking any risk themself,
and providing your skillful enough to make money scalping with those sorta spreads you get a lovely tax free income, so everyones a winner).
And so back when i was trading at £14 per tick i paid them £168 comission per trade,
while they hedged me in the underlying for just 4ticks spread,
And so they were fine when i kept earning and withdrawing £1,000+ each day as they were also making money.
And while they also make money even if you lose money,
they dont want you to lose all your money,
since if you stop trading then they lose their risk-free income.
So they will often actually even help you out by filling you a few ticks in your favour just to keep you happy,
which is always nice.
They are all huge international corporations, and so have offices in London UK,
however they all have their HQ registered to the tax-havens like caymen islands,
and so all the money they hold of yours is hidden from the UK government from ever having any way of knowing that it exists.
But when you want to spend some money you simply withdraw it back into your normal basic bank account (takes 1-2orking days till it arrives).
And kids can get from age 5 have bank accounts, so theres no credit check done as everyone can get one as long as you have a fixed address and a passport.
And so while a court could look and see that previously i used to have incoming tranfers of £1,000 passing through my bank account every few days, and then being withdrawn out of the ATM into cash for me,
they have no way of getting access to where that money came from exactly, and no way of knowing where it all went after i withdrew it all from my bank account!
