Results 1 to 7 of 7
  1. #1
    fenixs's Avatar
    fenixs is offline New Member
    Join Date
    July 2014
    Posts
    4
    Thanks
    0
    Thanked 1 Time in 1 Post

    Default Introducing Broker payments

    Hello.
    I am currently trying to develop a new website, entirely centered around the forex topic. I have personally stumbled upon a problem recently, when some of the broker agencies I joined in order to represent on my new site about forex, have refused to provide any form of a taxation document for my company. Most of the trading services tend to merge the investing profile with the introducing broker account, which does not provide any sufficient information regarding the authorized payment handed out on regular terms. There are no typical affiliate programs that allow for an easy management of the incomes, so I am not sure how exactly the brands are able to sufficiently document the promotional services that are being offered on the part of my own company. If anyone could shed some light on this matter and explain if there is some possible way for receiving any form of invoice, please be as kind to share.
    Thank you.

  2. #2
    JohnA is offline Public Member
    Join Date
    September 2014
    Posts
    112
    Thanks
    2
    Thanked 35 Times in 23 Posts

    Default

    I assume you are in the USA and are referring to the regulations necessary for forex affiliates.

    The truth is, there aren't many legit USA forex affiliate programs (i.e. with USA licenses) precisely because of those regulations and all the "taxation document" and "documenting promotional services" etc. stuff. It's just too complicated. Most legal USA forex sites just dropped their affiliate programs completely because it's too complicated.

    Your choice is either to promote unlicensed and illegal forex sites (you shouldn't) or just don't promote in the USSA and instead focus in EUSSR countries only.

    Edit: Also, most forex affiliate programs operate from offsore jurisdictions for taxation purposes (most casino aff programs do the same) like British Virgin Islands etc. They really don't bother with proper invoicing etc. as they don't even have to keep proper accounting. Just ask them in what country their company is located in and what it's name is (you can actually find this in Google) and then you just make an invoice for yourself and for your own accounting.

  3. The Following User Says Thank You to JohnA For This Useful Post:

    -Shay- (3 March 2015)

  4. #3
    fenixs's Avatar
    fenixs is offline New Member
    Join Date
    July 2014
    Posts
    4
    Thanks
    0
    Thanked 1 Time in 1 Post

    Default

    Thank you kindly for your response, John. Unfortunately, I was more interested in what is defined now as the two distinctive cooperation forms that can be signed with the forex platforms. One of them would be the standard affiliate account, where it is mainly utilized as means for promoting the brokers. During this action, the settlement of finances comes with no issues whatsoever. The second type is known as the Introducing Broker, where the affiliate profile is merged with the trader account for good. During this type of account, your earnings from promoting a brand go straight into the trader account and you are able to freely withdraw them. The question remains, how one does exactly settle such legal profit with the taxation authorities. I would also like to add that I am actually European.

  5. #4
    superme is offline Private Member
    Join Date
    November 2014
    Posts
    117
    Thanks
    8
    Thanked 33 Times in 22 Posts

    Default

    You can always ask the brokers to convert your accounts into business accounts where each month you will get automatic invoices, as for the money going into the personal trading account, the tax laws apply for persons and vary in every country in EU, though if you run most of the money via Skrill or Paypal no tax agency can detect it, if the money goes into your bank account you have to declare it and pay the tax as per the country law. It does sux though as the IB programs are more with personal approach so I think it is case to case matter and for each one you have to talk to your affiliate managers.

  6. #5
    wonderpunter's Avatar
    wonderpunter is offline Private Member
    Join Date
    August 2013
    Posts
    2,514
    Blog Entries
    5
    Thanks
    402
    Thanked 1,680 Times in 1,008 Posts

    Default

    Quote Originally Posted by superme View Post
    You can always ask the brokers to convert your accounts into business accounts where each month you will get automatic invoices, as for the money going into the personal trading account, the tax laws apply for persons and vary in every country in EU, though if you run most of the money via Skrill or Paypal no tax agency can detect it, if the money goes into your bank account you have to declare it and pay the tax as per the country law. It does sux though as the IB programs are more with personal approach so I think it is case to case matter and for each one you have to talk to your affiliate managers.
    Incorrect.. you really think you can avoid taxes by using Skrill or Paypal? Do not listen to this bad advice... there are certain ways you can lower taxes all will need expertise of an accountant if you are not familiar with the laws, And you can also self invoice yourself as long as you declare what you make you shouldn't have any trouble..

  7. #6
    alexcruncha's Avatar
    alexcruncha is offline Private Member
    Join Date
    March 2010
    Location
    Cyprus
    Posts
    119
    Thanks
    30
    Thanked 33 Times in 22 Posts

    Default

    Quote Originally Posted by fenixs View Post
    Thank you kindly for your response, John. Unfortunately, I was more interested in what is defined now as the two distinctive cooperation forms that can be signed with the forex platforms. One of them would be the standard affiliate account, where it is mainly utilized as means for promoting the brokers. During this action, the settlement of finances comes with no issues whatsoever. The second type is known as the Introducing Broker, where the affiliate profile is merged with the trader account for good. During this type of account, your earnings from promoting a brand go straight into the trader account and you are able to freely withdraw them. The question remains, how one does exactly settle such legal profit with the taxation authorities. I would also like to add that I am actually European.
    It depends on your jurisdiction. In the UK you would just declare whatever you withdrew that is more than you deposited as profits. I assume it is similar for most jurisdictions.
    --
    Alexcruncha
    FantasyBingo.co.uk
    CasinoReviewSquad.com

  8. #7
    alexcruncha's Avatar
    alexcruncha is offline Private Member
    Join Date
    March 2010
    Location
    Cyprus
    Posts
    119
    Thanks
    30
    Thanked 33 Times in 22 Posts

    Default

    Quote Originally Posted by fenixs View Post
    Thank you kindly for your response, John. Unfortunately, I was more interested in what is defined now as the two distinctive cooperation forms that can be signed with the forex platforms. One of them would be the standard affiliate account, where it is mainly utilized as means for promoting the brokers. During this action, the settlement of finances comes with no issues whatsoever. The second type is known as the Introducing Broker, where the affiliate profile is merged with the trader account for good. During this type of account, your earnings from promoting a brand go straight into the trader account and you are able to freely withdraw them. The question remains, how one does exactly settle such legal profit with the taxation authorities. I would also like to add that I am actually European.
    I just re-read this thread and do not think my last response provided sufficient information. In the case the account you have as an introducing broker is like a client's account you need to ask to set up your account in the name of your company as a corporate account. I believe you would declare the income using the account statements you receive from the broker (which should show funds deposited to your account). I believe you would use the same procedure to declare these profits as if your company had deposited money and made it from trading. However, your accountant should be able to clarify that.
    --
    Alexcruncha
    FantasyBingo.co.uk
    CasinoReviewSquad.com

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •