Withdraw foreign currency through a trading account

[sphinx11]

complete newbie here and haven't started trading. .. so a naive question.

I often travel internationally and spend a few thousands of USD, EURO, GBP each year.
So if I open a trading account and hold some of these foreign currency, can I easily withdraw them to spend on my trips? (Rather than paying retail rate during my trip?)... Or maybe spend them for other purposes, e.g. online shopping in USD)

Do I need a foreign currency bank account in Australia for each type of currency to do that or there are some other easy ways? Is there a simple foreign currency bank account that can hold multiple types of currency?

Do people here only do short-term trading or they hold foreign currency in middle or long term (6 month to 1-2 years)? Does long term holding make sense?

thanks.

 

[tayser]

Short answer to your first question: No.

Broker trading accounts invariably don't have access methods other than wiring / sending a cheque to your account you tell them about in the application form and they usually dont allow you to send money to a 'third party' which invariably means another account in your name (or someone else's) in another domicile (i.e if you state on your app form you're an Australian resident, you will only be able to withdraw funds to your Australia bank account nominated and not any other bank account in another country (such as if you have a US bank account with a US Bank etc) - this does vary from broker to broker however).

Australian banks will allow you to open different denominated accounts (i.e a USD account with its own BSB & Account #, EUR account with its own BSB & Account # etc etc) but I doubt multiple currencies on the one "account" (single BSB & Account #) - banks needs to know the currency of the funds transfer and thus you need 1 account for each different currency account you want to hold AFAIK - best to contact them.

Your last question could be discussed and debated endlessly and there's no short answer

 

[Pager]

Don't think you can

What i do is hedge my trip in a way, im off to the USA at the end of January and have an account with IB, i can estimate how much im going to spend whilst away and when the $A hit 0-70 US cents i bought half what i think i will spend in $US.

I wont take this cash with me but when i return i will unwind my $US position with IB, if the rate goes higher than 0.70 when im away im out of pocket a bit but if it tanks, well im not going to be hit as hard as what i spent extra to cover the bad rate will be offset when changing my $US back to Aussie, cost with IB are low as well, will cost you about $4 for the transaction, also the rate you get is significantly better than the retail bank rate.

Couple of things to note though good and bad, if i close my position when i return at a loss its a capital loss as ive done it via a trading account, but if i make a profit its a capital gain.

I only ever do 50% of my estimated spend.

 

[Felix Profound]

Australian banks will allow you to open different denominated accounts (i.e a USD account with its own BSB & Account #, EUR account with its own BSB & Account # etc etc) but I doubt multiple currencies on the one "account" (single BSB & Account #)

Would anybody give me information which bank let me open a US dollar base account?
Cause ANZ do not let as I was told.

Thanks in advance

PS: I just want to withdraw from my broker in USA to Australia. My broker just let me withdraw us dollar.

 

[Trembling Hand]

Would anybody give me information which bank let me open a US dollar base account?
Cause ANZ do not let as I was told.

Thanks in advance

PS: I just want to withdraw from my broker in USA to Australia. My broker just let me withdraw us dollar.

LOL. Just friggin LOL!!

 

[Stormin_Norman]

Would anybody give me information which bank let me open a US dollar base account?
Cause ANZ do not let as I was told.

Thanks in advance

PS: I just want to withdraw from my broker in USA to Australia. My broker just let me withdraw us dollar.

is it the first time youve attempted to withdraw funds back to australia?

 

[Trembling Hand]

is it the first time youve attempted to withdraw funds back to australia?

Yeah, he put in $5000 a couple of weeks ago and now its below minimum balance to trade and needs the $200 back. :

 

[Felix Profound]

is it the first time youve attempted to withdraw funds back to australia?

I am opening an account with an American broker but they say you can just withdraw US dollar.
In other side ANZ, where I got my bank account, says to recieve US dollar to you should have a Forein Exhchange Account which is business type and then open it just if you have more than 100K transactions per year.

 

[Felix Profound]

Yeah, he put in $5000 a couple of weeks ago and now its below minimum balance to trade and needs the $200 back. :

LOL

Joking apart not,
As I told I'm opening a new account

 

[nunthewiser]

there ya go darl

http://www.hsbc.com.au/1/2/personal/savings/multi-currency

 

[Stormin_Norman]

I am opening an account with an American broker but they say you can just withdraw US dollar.
In other side ANZ, where I got my bank account, says to recieve US dollar to you should have a Forein Exhchange Account which is business type and then open it just if you have more than 100K transactions per year.

what currency did u previously trade in?

 

[Trembling Hand]

I am opening an account with an American broker but they say you can just withdraw US dollar.
In other side ANZ, where I got my bank account, says to recieve US dollar to you should have a Forein Exhchange Account which is business type and then open it just if you have more than 100K transactions per year.

For someone who was giving out advice on how to make money in FX this is a rather lame question to be asking, from an expert

It doesn't matter if ANZ receive USD its just converted to AUD.

 

[nunthewiser]

Gotta love this forum .

Gotta love book quoting experts

Gotta love those that point out book quoting experts


blessyas

 

[Felix Profound]

what currency did u previously trade in?

I mainly trade on cable and fiber, but what difference does it make?

 

[Felix Profound]

For someone who was giving out advice on how to make money in FX this is a rather lame question to be asking, from an expert

It doesn't matter if ANZ receive USD its just converted to AUD.

Afraid not, ANZ returns back currencies other than AUD

 

[Trembling Hand]

Afraid not, ANZ returns back currencies other than AUD

Not to my ANZ account

 

[YELNATS]

there ya go darl

http://www.hsbc.com.au/1/2/personal/savings/multi-currency

I've held a US$ bank account with HSBC for the last 6 years and it works well.

It even funded my recent o/seas hols in US$, rather than A$, due to the collapse of A$.

 

[nunthewiser]

I've held a US$ bank account with HSBC for the last 6 years and it works well.

It even funded my recent o/seas hols in US$, rather than A$, due to the collapse of A$.

yeah i use em for various currency holdings also . intrest rate pretty sad ,but easy to deal with , good service and suits my needs

 

[Stormin_Norman]

Afraid not, ANZ returns back currencies other than AUD

Not to my ANZ account

mine either. its a bit of a scam for fees and exchange rate, but having the AUD drop from 90+ down to about 70 at the time i took most of my money back, i could cope without feeling to ripped off.

what currency did u previously trade in?

I mainly trade on cable and fiber, but what difference does it make?

if youve never bought back money in USD, what currency were your previous trading accounts based in? AUD?

 

[YELNATS]

complete newbie here and haven't started trading. .. so a naive question.

I often travel internationally and spend a few thousands of USD, EURO, GBP each year.

Do I need a foreign currency bank account in Australia for each type of currency to do that or there are some other easy ways? Is there a simple foreign currency bank account that can hold multiple types of currency?

thanks.

Try taking out a Travelex Cash Passport which you can get from Australia Post outlets.

You pay for them in A$ and they can be issued on the spot in any one of 5 currencies - A$, NZ$, Euro, US$ or GB pounds, but if you go to another country eg. Japan, you will be paid when you withdraw with your card at over 1 million worldwide Visacard ATM's in the local curreny, eg. Yen. Travelex will then recompute your balance in your chosen currency.

You can also top your card up when you like or cancel it and get your remaining balance back when you return to Australia.

A very flexible idea I have found.