On xe.com it says £200 is $403, however when I go to Travelex.co.uk and try and purchase £200 worth of dollars it says I'd get $393. Is it because Travelex.co.uk aren't using up to date rates or is this just a conversion charge or something?
If I went to a bank or the post office would I get nearer $400?
Sorry i'm new to this
They can use whatever rates they like really, but most of that will be commission.
I think you can check most banks rates online
xe.com use the actual exchange rates dictated by the money markets.
Buying currency is different though. Travelex buy USD on the market at the rates XE.com is quoting, but then sell to you at a slightly different rate. Thats where they make their money. Their gross proffit margin on that transaction is £10, about 5%. Not a lot really.
Nearer $400, perhaps. Try the highstreet. I got $1.945 and $1.956 to the pound about a month ago. I was impressed.
its called FX (Foreign eXchange) rate trading, and its a great way to make and loose money.
http://www.igforex.com/ will let you have a practice account, which is a good way to play and learn the market if your intrested.
If you goto the post office to get say 200 euros, you will see a big board with Bid and Ask, the bid column will be less than the ask, because they will bid (offer) less euros than they would Ask, that is how you make money, buy low sell high
throw new ArgumentException (String, String, Exception)
Funkstar (12-08-2007)
The Post Office does it commission free I think still.
Now hats something i would like to have a go at. Cheers for the link Animus
Just because it is "commission free" doesn't mean they don't make money on the transaction. they just don't charge you a flat fee on top like they used to do, that was the commission + the markup n the currency.Originally Posted by Mad-Max
Last edited by Funkstar; 12-08-2007 at 01:25 PM.
be careful thou, FX trading is seriously addictive as theres always a market open!
throw new ArgumentException (String, String, Exception)
If i get some time i'll have ago with their practise account.
Chances of getting that time to sit and play? slim
some of us have 4 weeks of paid holiday left
throw new ArgumentException (String, String, Exception)
goit
Guys, i'm not going for another 2 weeks. Should I exchange my money now or wait and hope the rates get better?
http://finance.google.com/finance?q=USDGBP
Have a look at the 3 month view and decide yourself
Its been at a recent low lately, but many people will always have confidence in the dollar. But with the 'Sub-Prime' lending fiasco (Credit Derivs been very gready) its possible it could fall further if people loose confidence with the US ecconomy. But remeber that this sub-prime 80billion£ that got lost in the city (london) the other day is more of a knee jerk reaction than a true state of affairs, there could be a resurgence.
throw new ArgumentException (String, String, Exception)
It may well move in 2 weeks, but only by a few pence.
If you work for a large company your payroll may well have commercial rates - get them to deduct it from your salary.
If you want to play at FX trading I prefer oanda. I once worked to develop a trading platform like this for UBS in Zurich and the OANDA model is basically what we ripped off. they have very small margins.
grabbi_21 if you compare you will find that some places have huge margins (the difference between the buy and sell prices) and others have small ones. Some have commission, and some don't. It pays to check around, but for 200 quid it's not a big deal, your margin is probably around the 10 quid mark.
RE: the market. The recent market blip is not really as minor as all that, it could well lead to a market shake-out, particularly in overheated Britain. I worked for the ECB for a while and I assure you that it takes a lot for it to intervene in the FX markets to the tune of over 150 Billion euros. However, the intervention has stabilised the market and the short-term prospects are for more of the same, overall the dollar will probably slide slowly vs the Pound and Euro until the end of the Bush regime looms closer. You won't make or lose a lot over the next 2 weeks.
(Thanks Evilmunky)
Eagles may soar, but weasels never get sucked into jet intakes.
Is it really possible to make money from the above, large amounts?
laze.
You're invited to follow me on Twitter
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
LinkBack URL
About LinkBacks
Reply With Quote
