I'm in the U.K. And I have an account with AMP futures in the U.S and I trade us markets so my account is in usd.
I'm just trying to figure out the best and most efficient way to convert the usd into gbp and recieve it here in the U.K.
AMP can convert my currency themselves but I'm sceptical about the exchange rate and believe a better rate can be achieved elsewhere.
One problem however is that AMP will only allow a withdrawal to an account in my name. I did have the idea of withdrawing to my moneycorp account and benefitting from there competitive rates. The problem is I would have to withdraw to moenycorps account and then they go on to debit my actual account with them so that's a no go.
My questions are
1. Is it really worth bending over backwards for other exchange rates, do you think AMPs is acceptable and I should just use them?
2. Do you know of any other way of withdrawing the money from my AMP and converting it at a more efficient rate?
Yes I've heard of transfer wise. The problem isn't transferring the money into my broker in the US. I can do that easily and cheaply with moneycorp.
The problem is withdrawing usd from my us broker back to the uk (to an account that HAS to be under my name) and from there I can then use currency brokers such as money Corp for the better exchange rate.
Of course there is always the option of using AMP to convert the currency but there only going to give you the poor rates that banks offer.
I think the good option would be to:
- have a bank account in USD "somewhere", your UK bank should be able to open it
- transfer USD from the broker to this USD account
- send USD to a Forex broker
- convert your USD to GBP in the Forex account
- send GBP to your UK account
It's not a very "light" method, and you'll have to find out the costs, if there are costs, for each transfer. And also check the cost of managing a USD bank account in UK (in my case, a French bank, it is was $39/month...).
Usually in trading, those who know don't talk, and those who talk don't know. (Al Brooks)
success requires no deodorant! (Sun Tzu)
Yes I have looked into this option and by the look I things I think your right. It is a lot of mucking about. I did enquirer with Barclays in the past and they charge fees to transfer money, fees for just having the account. Also a minimum of $2000 must be kept in it or you whacked with another fee aswell haha.
I think a bit of number crunching is in order to see whether it's all worthwhile.
I am still interested to hear from any other uk based trader about how they manage foreign currency whilst trading foreign markets.
Although it is probably a small risk, one thing to bear in mind when dealing with non bank intermediaries when transferring/converting funds is Counter Party Risk ie the risk of the non bank intermediary failing/collapsing/fraud while they have your funds.
Small risk but it is likely to be a higher risk than using a bank. Certainly when I was in the corporate world our treasury policy prevented us from using non bank intermediaries due to the greater risk - but then the $ involved were huge compared to what most of us would be transferring.