A money broker is someone who is called mediator between buyer and seller who earns commission for performing this task. These days this business has been introduced in various global business financial hubs like Hong Kong, Malaysia, UAE, and Jersey among others. Labuan money broking is one such example where transacting buyer and seller has become one of the leading businesses in consideration of some part of the transaction also called brokerage.
All this money broking business is governed as per respective country’s guidelines. Having said this if you wish to enter this business, you will need to apply for respective countries or offshore broking license only then you can start this business.
Benefits Of Being A Money Broker
Numerous benefits are attached with a money broker and most significant of them being tax incentives. A money broker acts as an intermediate but is not liable to pay the borrower in case the recipient goes bankrupt. Hence a risk-free business without a doubt. In countries with double tax agreement like Australia, USA, Malaysia, and Germany among others offers tax benefit incentive to money Broking Company just like it is done in Labuan money broking firms.
Offers Financial Services
A money broker in addition to acting as a mediator between a buyer and a seller also provides their clients various other financial services depending on the broker. Some money brokers give you a service of acquiring a financial good like a home loan or car loan among others. Thus a job of a money broker is not limited to working as a mediator between two parties. A money broker’s network too can be used for enhancing your company at a global stage. Thus the scope of money broking is way beyond than just being an intermediate.
Money broking agencies are very crucial in smooth functioning of an economy. It is because of them that individuals with money can invest their money and at the same time grow their wealth as well as an interest rate which no banking or financial institutions for that matter offers. This sector though is monitored and supervised with the government institutions who issue their licenses.
They are the one who put available money into something productive. Affluent who stashed their money in their lockers are given an opportunity to give it to intermediates to earn interest on that stashed money. On the other hand, the recipient who borrows money mostly borrows for investment, and hence the money keeps rolling rather than stashing under mattress or lockers.