Forex Accounts

[bergers_n_fries]

Hey yal'l. I already have a stock portfolio however with the high USD I figured it would be a good time to diversify my investments and enter the world of foreign currency, in particular the USD (how cliche).

Anyways. How do I get my hands on some of this? Do I set up a bank account with an american bank, do I purchase some through i.e the CBA? What do I do?

Essentially do I grin and bear the currency conversion rates of the big four or do I maintain patience and shop around a little bit for a much better deal?

Any advice would be really helpful as currently I do not know too much.

Thanks in advance.

 

[Alpha_Bet]

Plenty of information here and various sites. Google away.
No need to hold the physical currency. Don't use a bank for this transaction if it's for speculation. The banks will rip you for 200-300 pips (2-3 Australian cents) entry/exit.
Use A FX dealer or currency futures.
You will have the opportunity to use leverage. Remember there is a cost of carry with currency speculation. If you were to purchase US$ with A$ you will have to pay the interest rate differential between these 2 countries. If inverse the case you would receive interest- the carry trade. This is calculated daily or by some brokers via the second.
Make sure your funds are secure as possible. Not a fly by night bucketshop.
Like I said, plenty to research here and on the net.
Good luck

 

[bergers_n_fries]

Plenty of information here and various sites. Google away.
No need to hold the physical currency. Don't use a bank for this transaction if it's for speculation. The banks will rip you for 200-300 pips (2-3 Australian cents) entry/exit.
Use A FX dealer or currency futures.
You will have the opportunity to use leverage. Remember there is a cost of carry with currency speculation. If you were to purchase US$ with A$ you will have to pay the interest rate differential between these 2 countries. If inverse the case you would receive interest- the carry trade. This is calculated daily or by some brokers via the second.
Make sure your funds are secure as possible. Not a fly by night bucketshop.
Like I said, plenty to research here and on the net.
Good luck

My main reason is that I am heading to the USA next year (around August-September) and am wanting to secure my money and a strong rate as soon as possible.

This is not speculation as (as above) I want to secure my cash at the best rate possible however if the dollar somehow crashed i would make a good return on something that I did not deem as a probable investment to begin
with.


I do not want to purchase a futures contract, i do not wish to lever my funds and become exposed with money that I simply do not have.

I hope this makes sense. Chortle.

 

[Tanaka]

I live on and off in other countries and when I send money I always use:

http://www.ozforex.com.au/

IMO their rates are always much much better than the banks. But in my situation I have always had a bank account in the country where I was heading, futhermore I think they have a 10K minimum.

 

[Alpha_Bet]

My main reason is that I am heading to the USA next year (around August-September) and am wanting to secure my money and a strong rate as soon as possible.

This is not speculation as (as above) I want to secure my cash at the best rate possible however if the dollar somehow crashed i would make a good return on something that I did not deem as a probable investment to begin
with.


I do not want to purchase a futures contract, i do not wish to lever my funds and become exposed with money that I simply do not have.

I hope this makes sense. Chortle.

Apologies for the misunderstanding.
For this type of transaction there's OANDA FX Global Transfer, XE.com or as Tanaka suggested Ozforex. These 3 will give you much more beneficial rates compared to Australian Banks.

 

[hotbmw]

Guys, i have a small online shop where i import goods every month or 2. For years now i have been wiring money with NAB and they take a spread of 2 to 3 cents ie. if aussie is .99 they give me .963 etc.
I saw some posts here about Oanda.
If i have read all correctly it seems that their spread is almost nothing. so if the aussie$ is .99 they seem to suggest i can get .985 with them.
Is this correct?
This would save me a lot of $ when i import.

Also i am a bit confused with the funding of this account. So if my money is in AU$ in a NAB account, say a credit card, can i instruct Oanda to take $10,000 USD at Oanda's exchange rate of almost real time rates and my $10,000 USD will sit with Oanda. So i dont need to send money to Oanda using NAB's low exchange rates? I hope i am making sense. Basically im asking how do i get almost real time exchange rates to Oanda without the involvement of NAB sending it with a crappy exchange rate.

Or if with NAB i sent $10,000 AUD, will it be $10,000 MINUS $25 fee at Oanda? So then i have $9975 AUD in Oanda and when i want to send the funds in USD$ i can use Oanda's favourable exchange rates?

Anyone else do this or have experience?

Your help is appreciated greatly.

Thanks guys.
Robert

 

[hotbmw]

No one

 

[macca]

Hi Rob,

I think you are talking two different things here, with Oanda, as far as I know, you are speculating on spot forex.

If you want to pay an account overseas I have read that OzForex is used by others and they are happy. I have never used them myself so do some research would be best.

 

[prawn_86]

I work as an FX Broker who deals with SME's and give much better rates than the banks. Feel free to PM me

 

[hotbmw]

thanks guys. prawn86 i will pm u now

 

[Alpha_Bet]

Hi Rob,

I think you are talking two different things here, with Oanda, as far as I know, you are speculating on spot forex..

OANDA offer FX Global Transfer for physical currency transactions.

 

[prawn_86]

OANDA offer FX Global Transfer for physical currency transactions.

Your better off using a local broker than a US based co like Oanda

 

[macca]

OANDA offer FX Global Transfer for physical currency transactions.

I didn't realise they did that, thanks