Pros And Cons Of Offshore Investing

For many years offshore investing has been demonized by the media. In fact, it is seen as a way of investors investing their money with illegal companies located in certain areas where tax is quite minimal. Although, it is true that there are some shady offshore deals, the majority of offshore trading and investing is perfectly legal. This explains why you need offshore stock brokerage services. Depending on your situation, you are likely to find this type of trading having several advantages.

What is offshore trading?

This refers to a broad range of investment strategies, which capitalize on the benefits provided outside the invescounting moneytor’s home country. Before you stash your hard-earned cash, you need to know its advantages and disadvantages. You will note that there is a large money market, equity assets, bonds, and stocks provided by reputable offshore companies. All these are time-tested, fiscally sound, and legal.


Tax reduction

There are countries known as tax havens. These provide tax incentives to the foreign investors. Favorable tax rates in the offshore country are meant to promote a healthy environment for investing, which attracts outside wealth. It is true a tiny country with only a few resources and small population, which attracts investors dramatically increases economic activity. This means that offshore investment takes place when investors from outside the country form a company in another country. This company protects investor’s accounts and shields investors from higher tax burdens.

Asset Protection

There are offshore centers, which are popular destinations for restructuring ownership of the assets. Individual wealth can easily be transferred from persons to other legitimate companies. When you male on-paper ownership transfers, individuals are not susceptible to domestic troubles or seizure.


The majority of offshore jurisdictions provide strict banking and corporate confidpointing the world mapentiality. If confidentiality is breached, then there are consequences for the offending party. Divulging customer identities is an example of breaching confidentiality in most
jurisdictions. Secrecy does not imply that these investors are criminals. It is true that high-profile investors do not want the public to know the stocks they are investing in.


Tax laws are becoming tight

There are tax agencies, which are not ignorant of the offshore strategies. They have been aware of traditional ways of avoiding tax. However, there are still some loopholes.


It is a fact that offshore accounts are not that cheap to create. To create a company that operates in this location may require registration fees, legal fees, and even owning some property in the country.…

6 Advantages Of Investing In Commodities

Over the years, commodity futures have become an important part of every diversified and successful investment portfolio. This is probably because returns from most commodities over the last 50 years or so have been significantly higher than the average global inflation rate. It can, therefore, act as a hedge against inflation while providing a constant cash flow. There are many advantages of investing in commodities including the following.

1. Liquiditybar graph

Unlike real estate and some other investment vehicles, commodity futures often offer high liquidity. This simply means that it is easy to buy & sell futures, and you can also easily liquidate your position whenever required. Moreover, you have the ability to use the returns from a trade in other avenues without having to close your position.

2. Leverage

Since trading is done on margins, investors enjoy greater leverage. You will only need to deposit a portion of the value of the commodities contract with a broker to cover specified margin requirements for exchange. The greater leverage allows you the chance to generate even higher returns.

3. Diversification

Diversification is a proven way to keep your returns steady and minimize losses. Thankfully, commodity investments enable you to put your money in different avenues and steady your portfolio even when other investments are tanking. You can invest in precious metals like Gold, foodstuffs, energy and industrial metals.

4. Hedge against inflation

As the currency depreciates, stocks and bonds tend to earn less as well as fall in value. Most investors fear this kind of situation because it means a higher possibility of making huge losses. But commodity prices typically rise during periods of inflation, so anyone who has invested in the market can take advantage of the upswing. It acts as an inflation hedge.

Businessman Holding Nest Full Of Golden Eggs5. Higher returns

Individual commodity prices may fluctuate due to a myriad of factors such as exchange rates, inflation, supply and demand, and the overall performance of the economy. Although this poses a risk of your investment losing value, there’s also a chance of raking in more returns. For instance, prices rise when the demand is high meaning that you can get higher profits during this period if you play your cards right.

6. Transparency

Another advantage of investing in commodities is that the trading is transparency and not vulnerable to manipulation. Prices are determined by a price discovery method without intervention by sellers or buyers. Moreover, all stakeholders/ investors are required to undergo strident security checks & due diligence to trade on the platform.…