Business Plan

[DMFXTrader]

I am starting up my own Limited company so that I can go full time trading forex in a couple of months and I am trying to open a business bank account to go with the company but the bank wants a business plan as they do not fully understand what I will be doing. Has anyone written a business plan for this kind of business or are there any links to example business plans for trading forex, commodities and indices that anyone knows of?

Any advice would be appreciated.

 

[Mathemagician]

Use a different bank.

jj

 

[luckyd1976]

I agree with Math on this one. Banks dont need Bplans unless your trying to borrow from them. Opening a Small Bus account is just like a personal account.

123
1 Name of Corp, Articles of Corp (2 the Proof it exsists), 3 Send in money.

 

[0007]

I agree with Math on this one. Banks dont need Bplans unless your trying to borrow from them. Opening a Small Bus account is just like a personal account.

123
1 Name of Corp, Articles of Corp (2 the Proof it exsists), 3 Send in money.

Agree. A few years ago Alliance and Leicester offered a free business account for small businesses along the lines above.

If your current bank can't understand trading forex I'd run a mile.

 

[forker]

make sure you open the account without credit and your paperwork will be cleared

 

[shadowninja]

Yep, tell them you want to open a business account not borrow money. Never had a problem with Barclays. Just walked in, proved I was MD of my limited company and job done.

 

[DMFXTrader]

Thanks for the advise. I have tried Lloyds and HSBC and they both wanted a business plan - I will try Barclays tomorrow and say that I don't need to borrow money. Maybe that will help.

Thanks again.

 

[shadowninja]

Good luck!

 

[Mr. Charts]

I am starting up my own Limited company so that I can go full time trading forex in a couple of months and I am trying to open a business bank account to go with the company but the bank wants a business plan as they do not fully understand what I will be doing. Has anyone written a business plan for this kind of business or are there any links to example business plans for trading forex, commodities and indices that anyone knows of?

Any advice would be appreciated.

I assume you have already done the obvious and asked your accountant.........?
Richard

 

[Magos]

Thanks for the advise. I have tried Lloyds and HSBC and they both wanted a business plan - I will try Barclays tomorrow and say that I don't need to borrow money. Maybe that will help.

Thanks again.

Again a friend of mine is doing it with HSBC. They didn’t need any business plan.
I don’t know why they are being difficult with you.
Also use a lawyer, they charge but they get things goin

 

[Lee Shepherd]

As has been expressed by all others here, all you need is your limited company number and certificate for which they will take a copy of. Take that in and they will open you an account. They only ever need a business plan to lend. Check the account you are asking for is the minimal account that is credit only, no debt allowance or american express type limited card that allows you to spend a certain amount to be paid in full at the end of the month.

All you need ask for is a business account only.

Or, a business plan would be a huge part of your trading history. Slap that in front of the guy that is controlled by the computer and tell him you want an account.

This info is from personal experience 5 years ago and may contain out of date errors or from memory.

 

[CIRCUIT]

I am starting up my own Limited company so that I can go full time trading forex in a couple of months and I am trying to open a business bank account to go with the company but the bank wants a business plan as they do not fully understand what I will be doing. Has anyone written a business plan for this kind of business or are there any links to example business plans for trading forex, commodities and indices that anyone knows of?

Any advice would be appreciated.

Why do you need to start a company? I am about to start trading with igindex in my own name and its tax free, wich only needs a small amount to start trading and if you are careful with your house keeping, you should be fine.
Good luck

 

[UKtradergirl]

Why do you need to start a company? I am about to start trading with igindex in my own name and its tax free, wich only needs a small amount to start trading and if you are careful with your house keeping, you should be fine.
Good luck

There are many reasons why someone would want to trade as a company.

If you are trading forex, especially on a larger scale you will most likely not be doing it through a spreadbetting company. Hence, obvious tax issues here.

Another issue is that.. if he was using a SB company, there is some debate about whether or not tax is actually payable if it is your only/main source of income. It seems no one can give a definitive answer to this, although most people seem to get away with it. Sometimes the IR have told people they have to pay tax, othertimes not. Starting a company would stop this being a risk.

Or, perhaps he wants to move into trading other people's forex accounts?

 

[fifty2aces]

There are many reasons why someone would want to trade as a company.

If you are trading forex, especially on a larger scale you will most likely not be doing it through a spreadbetting company. Hence, obvious tax issues here.

Another issue is that.. if he was using a SB company, there is some debate about whether or not tax is actually payable if it is your only/main source of income. It seems no one can give a definitive answer to this, although most people seem to get away with it. Sometimes the IR have told people they have to pay tax, othertimes not. Starting a company would stop this being a risk.

Or, perhaps he wants to move into trading other people's forex accounts?

Companies have to pay tax just like individuals - in fact if you want to pay yourself, you'll have to either take a salary, which you'll pay normal income tax on; or pay yourself dividends, which will come out of post-corporation tax income, and still be liable for dividend tax.

Generally speaking, starting a company will create an additional layer of complexity (extra money for your accountant) and an additional layer of taxation (extra money for Mr Darling).

 

[TomTom]

Bad Idea M8.
Any bank will gladfully accept anyones business its to there benifit to do so.
You are causing trouble for yourself by doing this.
Take the advise here or accept what lies ahead M8.

Company accounts, declared earnings, liabilities, ect ect its like telling the wife that you want life to be like Nightmare On Elm Street .

 

[Magos]

The idea should be simple:

Having a company: should be structured to be as tax efficient as possible

Being an individual having 2 options:
1. Spread betting (spread betting is free of stamp duty and exempt from UK Capital Gains Tax)
2. CFD trading (NOT exempt from UK Capital Gains Tax)

 

[msrxlbp2]

Maybe I'm missing somethin here but the leverage (ie borrowing facility) will be provided by the broker and the ability to not be a ltd company (ie spread bet for example) will mean that you won't have to pay income tax on your earnings and hence is a big advantage...?

 

[JTrader]

I am starting up my own Limited company so that I can go full time trading forex in a couple of months and I am trying to open a business bank account to go with the company but the bank wants a business plan as they do not fully understand what I will be doing. Has anyone written a business plan for this kind of business or are there any links to example business plans for trading forex, commodities and indices that anyone knows of?

Any advice would be appreciated.

It all sounds very formal, controlled and impressive.
But where will your business plan be when you hit a series of losses, you lose all faith in your system, only dare paper trade, and sit back watching yourself make mistake after mistake.

Not trying to sound negative. My point is, focus on actually making some profits, rather than where you're going to put the money once you've made it!

Still, i like your organisation, and your plan to treat your winnings wisely ............And its not like you've gone out and spent £600 on a new 42" plasma TV, a new car, a new ward-drobe, and a week in a 5 star hotel in Malibu - on the profits you "plan to" but haven't yet made

 

[deco101]

Company Trading

I intend to move all my trading to my limited company next year - not from a tax point of view more because I intend building a Company which derives most of its income from various markets....starting with fx then softs, indices etc...so more of a creative exercise rather than trying to squeeze every drop of tax efficiency

Am still a bit confused what type of Instrument is best to trade fx with through a limited company:

I see there are 3 choices:
spot forex, spreadbetting or CFDs

I assume the tax advantages of spreadbetting are not relevent here and that all three would allow losses and fees to be offset.

On one level all three are the same (the charts , indicators, methodolgy approach etc) and that its just the calculations, leverage etc which are different....

ANyone had experince in this ?

ta

 

[everyonerich]

I intend to move all my trading to my limited company next year - not from a tax point of view more because I intend building a Company which derives most of its income from various markets....starting with fx then softs, indices etc...so more of a creative exercise rather than trying to squeeze every drop of tax efficiency

Am still a bit confused what type of Instrument is best to trade fx with through a limited company:

I see there are 3 choices:
spot forex, spreadbetting or CFDs

I assume the tax advantages of spreadbetting are not relevent here and that all three would allow losses and fees to be offset.

On one level all three are the same (the charts , indicators, methodolgy approach etc) and that its just the calculations, leverage etc which are different....

ANyone had experince in this ?

ta

hi.. im looking for job as trader. i trade fx spot only.

my trading journal : http://www.trade2win.com/boards/trading-journals/45518-everyonerich-s-trading-journal.html

email or pm me for complete trading result.