Trading in Foreign Exchange
Any person or corporation may lawfully qualify to carry on or transact “trading in foreign exchange” in or from within Belize by obtaining a license in accordance with the regulations under the International Financial Services Commission Act Chapter 279 of the Laws of Belize Revised Edition 2000. The person or corporate entity must have management with the requisite knowledge and expertise of the business to be carried on and have at least one director resident in Belize.
A company that carries on Trading in Foreign Exchange in or from within Belize pays no taxes on profits so long as all its services are provided outside of Belize
What is Trading in Foreign Exchange?
The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.
The primary purpose of the foreign exchange is to assist international trade and investment, by allowing businesses to convert one currency to another currency. For example, it permits a US business to import British goods and pay Pound Sterling, even though the business’s income is in US dollars. It also supports speculation, and facilitates the carry trade, in which investors borrow low yielding currencies and lend (invest in) high yielding currencies and which (it has been claimed) may lead to loss of competitiveness in some countries.