Forex For Converting Funds? | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Converting MT3.83 EAs to MT4 1 reply

Converting MT3 EA to MT4 0 replies

Converting prices to numbers 3 replies

Trouble converting 1min data 2 replies

converting dll file to mq4 2 replies

Forex For Converting Funds?

  • #21
  • Jul 25, 2005 11:58pm Jul 25, 2005 11:58pm
www.everbank.com
  • #22
  • Jul 26, 2005 12:46am Jul 26, 2005 12:46am
Quoting fijitrader
Well I'm not so sure that Oanda has given conflicting information. You see I don't see anything in the letter they sent you that states that you can exchange ecurrencies. I see ambiguity that would allow you to construe that but the only comments in your post that led me to believe I could exchange currencies through them was from your edited conclusions but not from their notes. I agree the implication can be drawn from their notes but it is not conclusive. Your notes were the only conclusive portion.

I'm inclined to believe the guy I spoke with since I got the impression from both the immediacy of his response, and the sureness of his statements, that he had answered the question before, and knew what he was talking about. Usually I'll notice hesitation or uncertainty when someone is making it up as they go along. He not only answered my question he clarified it so I was left with no uncertainty that I could not do currency exchanges through Oanda. I followed up with two or three other questions to ensure I'd asked it from sufficient perspectives and consistently met up with the same response.

Therefore I'll conclude that it is unlikely that you can do currency exchanges through OANDA. My experience with discussing this with other MM's is that these kind of retail accounts are limited in what they can offer. It is also my understanding that you need to open a spot market account for buying and selling cash on the IB market.

FT
OK ... I emailed them again. Here is the exact email I sent:

Clarification please. One of my friends is getting contradictory information from you and I want to make sure I understand what you are saying.

1) Can I create a sub account in a different currency than my main account?
2) Can I transfer funds back and forth between main and sub accounts, even if they are in different currencies?
3) What would be the conversion rate for such a transfer?

Please answer these questions specifically and clearly. Much appreciated.

James Hall

And the reply I received:

Dear James:

Thank you for your query.

1.
You may have sub-accounts in the following base currencies: USD, GBP, CHF, JPY, EUR, AUD and CAD. It makes no difference what the base currency of your primary account is when selecting a base currency for your sub-account.

2.
You may transfer funds commission-free from your primary account to sub-accounts denominated in different base currencies.

3.
The prevailing rate on the platform will apply when you transferring funds to a sub-account in a different currency.

Hope this answers your questions.

Best regards,

OANDA FXTrade Team (DW)
http://fxtrade.oanda.com/

Maybe I'm confused here, but this sure looks like effectively a free forex conversion service. Maybe it is not called that in name, how is that not what they are doing?

There is a rule that funds have to be withdrawn in the same currency that they were deposited in, but if you funded both accounts up front it seems like that would not become an issue.

I apologize if I misled you on this. It still looks to me as if all the peices for currency conversion are in place unless I am missing something here.

James
  • #23
  • Jul 26, 2005 1:51am Jul 26, 2005 1:51am
Quoting Redleg
There is a rule that funds have to be withdrawn in the same currency that they were deposited in, but if you funded both accounts up front it seems like that would not become an issue.

I apologize if I misled you on this. It still looks to me as if all the peices for currency conversion are in place unless I am missing something here.

James
j

No worries about being misled. If they do currency exchanges I'd be the happier. However if you want to know if they permit currency exchanges then why ask so indrectly as to leave room for ambiguity. Just tell them it appears you can do low cost currency conversions by using sub accounts in different currencies and ask if you've drawn the correct conclusion.

FT
  • #24
  • Jul 26, 2005 7:03am Jul 26, 2005 7:03am
[quote=Redleg]OK ... I emailed them again. Here is the exact email I sent:

Clarification please. One of my friends is getting contradictory information from you and I want to make sure I understand what you are saying.

1) Can I create a sub account in a different currency than my main account?
2) Can I transfer funds back and forth between main and sub accounts, even if they are in different currencies?
3) What would be the conversion rate for such a transfer?

Please answer these questions specifically and clearly. Much appreciated.

James Hall

And the reply I received:

Dear James:

Thank you for your query.

1.
You may have sub-accounts in the following base currencies: USD, GBP, CHF, JPY, EUR, AUD and CAD. It makes no difference what the base currency of your primary account is when selecting a base currency for your sub-account.

2.
You may transfer funds commission-free from your primary account to sub-accounts denominated in different base currencies.

3.
The prevailing rate on the platform will apply when you transferring funds to a sub-account in a different currency.

Hope this answers your questions.

Best regards,

OANDA FXTrade Team (DW)
http://fxtrade.oanda.com/

Maybe I'm confused here, but this sure looks like effectively a free forex conversion service. Maybe it is not called that in name, how is that not what they are doing?

It looks that way to me
If I Go Broke Trying Then I Will die happy.
  • #25
  • Edited 7:19am Jul 26, 2005 7:08am | Edited 7:19am
you will only be trading with yourself. with your own money in two diffrent account two diffrent currency but your money. so how can you profit? you cant. if you have two account in two currency that you funded with your own money. you will only be taking from one and adding to another as the exchange rate goes up and down. you can do this all day. because its your money your playing with not nobody else.
If I Go Broke Trying Then I Will die happy.
  • #26
  • Edited 6:35pm Jul 26, 2005 4:13pm | Edited 6:35pm
Quoting Moe
you will only be trading with yourself. with your own money in two diffrent account two diffrent currency but your money. so how can you profit? you cant. if you have two account in two currency that you funded with your own money. you will only be taking from one and adding to another as the exchange rate goes up and down. you can do this all day. because its your money your playing with not nobody else.
With all due respect did you happen to read this thread to understand what it is about before posting? I'm just sort of curious what post in this thread led you to believe anyone has been talking about making profit?

FT
  • #27
  • Jul 27, 2005 3:55pm Jul 27, 2005 3:55pm
[quote=Moe]
Quoting Redleg
Maybe I'm confused here, but this sure looks like effectively a free forex conversion service. Maybe it is not called that in name, how is that not what they are doing?

It looks that way to me
I found this on their page http://fxtrade.oanda.com/fxtrade/mul...accounts.shtml

>Example:
>Susie's Primary Account Currency is US dollar (USD), while she holds 2 Secondary >accounts (sub-accounts) with OANDA: 1 in GBP and 1 in Euro. Susie may deposit >Euros directly in her EUR sub-account and USD directly into her USD Primary >account. When Susie decides to withdraw funds from her account, funds will be >deducted from the account where they came from. She will be able to deposit Euro in >her Euro account and withdraw Euro from her Euro sub-account. However, she will >not be able to deposit USD to her Primary account, transfer the funds to her EUR >sub-account, then withdraw them from her EUR sub-account.

So it doesn't go all the way, which is a shame. I've also been looking for a similar service.
  • #28
  • Jul 27, 2005 4:04pm Jul 27, 2005 4:04pm
[quote=Snusmumriken]
Quoting Moe

I found this on their page http://fxtrade.oanda.com/fxtrade/mul...accounts.shtml

>Example:
>Susie's Primary Account Currency is US dollar (USD), while she holds 2 Secondary >accounts (sub-accounts) with OANDA: 1 in GBP and 1 in Euro. Susie may deposit >Euros directly in her EUR sub-account and USD directly into her USD Primary >account. When Susie decides to withdraw funds from her account, funds will be >deducted from the account where they came from. She will be able to deposit Euro in >her Euro account and withdraw Euro from her Euro sub-account. However, she will >not be able to deposit USD to her Primary account, transfer the funds to her EUR >sub-account, then withdraw them from her EUR sub-account.

So it doesn't go all the way, which is a shame. I've also been looking for a similar service.
Perfect description. It confirms what they told me on the telephone. In essence it does not make sense for a forex mm to provide this service unless they want to become a full fledged currency exchange service.

Problem is the filing requirements, reporting duties, and audit trail necessary don't permit currency exchange to be conducted by a mm at 5 pip spreads and be profitable. A currency exchange business must charge more to pay for these duties to be performed and the systems necessary to to track them in a way that satisifies the regulatory authorities. MM's would have to set up an entire profit centre or corporate division just to handle this. That is likely why nobody is doing it. Also a mm providing this service would be scrutinized to a much higher degree than they'd ever want to be I suspect.

FT
  • #29
  • Jul 27, 2005 4:07pm Jul 27, 2005 4:07pm
Such a practice would never be allowed as it raises every money laundering red flag in existence.
  • #30
  • Jul 27, 2005 6:03pm Jul 27, 2005 6:03pm
Quoting blueshirt
Such a practice would never be allowed as it raises every money laundering red flag in existence.
I don't think that is likely to apply. If all the regulatory requirements were adhered to the government would have no basis to shut it down or refuse to allow it. It would attract scrutiny but I see no legal basis for any regulatory agency to refuse to allow the same company to run two different financial services. If there is a statute that does not permit this I don't know of it.

For a long time there were statutes that disallowed banks to sell securities and insurance but even that is changing. Are you aware of any statues that do not permit these two services (mm and currency exchange) to be offered by the same people?

FT
  • #31
  • Jul 27, 2005 6:35pm Jul 27, 2005 6:35pm
I'm not saying the government wouldn't allow it, it would just raise alot of red flags the more often the client put this type of conversion trade through without a legitimate cross border business that would require regular currency conversion.
  • #32
  • Jul 27, 2005 8:24pm Jul 27, 2005 8:24pm
Quoting blueshirt
I'm not saying the government wouldn't allow it, it would just raise alot of red flags the more often the client put this type of conversion trade through without a legitimate cross border business that would require regular currency conversion.
Ok so then, if not the government, then who is it that would never allow these currency conversions?

FT
  • #33
  • Last Post: Jul 27, 2005 8:33pm Jul 27, 2005 8:33pm
[quote=Snusmumriken]
Quoting Moe

I found this on their page http://fxtrade.oanda.com/fxtrade/mul...accounts.shtml

>Example:
>Susie's Primary Account Currency is US dollar (USD), while she holds 2 Secondary >accounts (sub-accounts) with OANDA: 1 in GBP and 1 in Euro. Susie may deposit >Euros directly in her EUR sub-account and USD directly into her USD Primary >account. When Susie decides to withdraw funds from her account, funds will be >deducted from the account where they came from. She will be able to deposit Euro in >her Euro account and withdraw Euro from her Euro sub-account. However, she will >not be able to deposit USD to her Primary account, transfer the funds to her EUR >sub-account, then withdraw them from her EUR sub-account.

So it doesn't go all the way, which is a shame. I've also been looking for a similar service.
Thanks - this is the point I was missing. You would never be able to deposit one currency and withdraw the other in the long run.

I stand corrected.

Makes me wonder why they allow you to switch currencies between accounts? I suppose that let's you hedge your overall position by keeping your margin in whatever currency you thought was strong at that particular time??? There might be an advantage in that for a good fundamentalist. Can't think of anything else to do with it offhand.

Redleg.
0 traders viewing now