International FX rates - transfer of funds?

[larrylocal]

Very rooky question here I know, but I have to ask it.

I understand that if I'm going to trade U.S stocks (as an Australian in Australia, using an Australian Broker) I need to purchase USD and the cost of the conversion is rather significant.

I noticed that in my HSBC account I can purchase USD as well, and the cost of doing so is significantly cheaper than the rates the brokers ask for. I gather it's a real money spinner for the brokers. Is it possible to purchase your USD elsewhere (such as in HSBC) and transfer it into your USD trading account? This is all in an attempt to save losing to the horrendous FX exchange fee costs no doubt?

 

[qldfrog]

Very rooky question here I know, but I have to ask it.

I understand that if I'm going to trade U.S stocks (as an Australian in Australia, using an Australian Broker) I need to purchase USD and the cost of the conversion is rather significant.

I noticed that in my HSBC account I can purchase USD as well, and the cost of doing so is significantly cheaper than the rates the brokers ask for. I gather it's a real money spinner for the brokers. Is it possible to purchase your USD elsewhere (such as in HSBC) and transfer it into your USD trading account? This is all in an attempt to save losing to the horrendous FX exchange fee costs no doubt?

I believe you can, i actually use hsbc myself as well to transfer USD from my hsbc USD account to a US broker .
Last night was a trial transfer and so far so good

 

[larrylocal]

I believe you can, i actually use hsbc myself as well to transfer USD from my hsbc USD account to a US broker .
Last night was a trial transfer and so far so good

Do you find you make a significant saving doing it this way? The FX rates these brokers charge seem a little excessive to me.

 

[qldfrog]

Do you find you make a significant saving doing it this way? The FX rates these brokers charge seem a little excessive to me.

Money not arrived yet in us trader account...so not sure yet it is working well.
But i like using hsbc rate

 

[larrylocal]

Money not arrived yet in us trader account...so not sure yet it is working well.
But i like using hsbc rate

I'll be interested to hear how this goes. If there's a saving to be made it's well worth using that method.

 

[qldfrog]

I'll be interested to hear how this goes. If there's a saving to be made it's well worth using that method.

Will keep you posted

 

[investtrader]

I have done this and no problem. I used Westpac to convert during the funds transfer. Rate as okay.

 

[larrylocal]

I have done this and no problem. I used Westpac to convert during the funds transfer. Rate as okay.

Was it a saving compared to the Broker FX rate and fee?

 

[investtrader]

Was it a saving compared to the Broker FX rate and fee?

Yes, I believe it was.