quercus

I'm sure there are some clued up folk out there who know what margin they pay. I have no idea what I've been charged in the past. Today I'm told to get 2.55 the rate has to be 2.56. Thats on 20K. For larger amounts they would do 5.559.

I suppose those are normal rates. Can anyone tell me if it's worth ringing around?

dpande

Depends on the volatility of the currency- recently 1.15c below interbank rate when stable, but up to 2c when volatile for small amounts.

quercus

It sounds like an ok deal then, thanks for that dpande.

chilliman

I just queried with my moneycorp trader when he called, it does depend on the volalitity - also if you put a limit order in the margin is even less!

quercus

hi chilliman, I will give moneycorp a ring for a quote. I only have a UK number for them, do you know if they have an Aussie number?

chilliman

Just looks like UK to me!??

quercus

I think that's right. Ozforex are both sides which is useful. I just checked the xe website and the rate is over 2.56, so my purchase with Oz should have gone through now.

This is a quote from the Moneycorp weekly letter just come out. They are still expecting the rate to improve more.

After a week of recession-related weakness the Pound should be under less data-related pressure this week. The cautious approach is still to hedge any exposure, using a forward transaction to fix an exchange rate for half the currency you need but buyers of the Australian Dollar may choose to reduce that percentage in recognition of the greater risks faced by the Aussie.

chilliman

Interesting I spoke to my dealer at Moneycorp today, he didn't balk when I mentioned I wanted to limit at 2.70, he did advise me to split my money & not go the whole lot! I wonder whether I should keep waiting!??? If I wait I miss the boat eh!??

quercus

You're brave, chilliman. Of course I would rather get 2.7 than 2.55, but the nerves are not up to it! When I first opened my Aus bank account I transfered a small amount to test it and got 2.5. It then started falling and I waited in vain for it to come back up. That was August 2007 and It's only recently got back up there.

If he advised you to split your deal, they must be thinking it could go higher than 2.7.

I just called Ozforex as I've had no confirmation of the deal. There's no record of it in their system. I got all indignant and said they employ an incompetent, but I simmered down when he said I could have a better rate. I got 2.5545, which doesn't sound much extra but is actually $1090 dollars more than the deal I made. I'm a happy bunny now!

chilliman

Well I don't need the money until March / April next year possibly alot later so can wait!

They really are not sure which way it will go, the way I look at it I'll be happy with 2.7 so will do 50% of my money on the limit for that. Then if get a move further above change the rest - balancing risk I guess!?

Good that you managed to bag a better rate!