HIFX,how do they make money?
Oct 31st 2005, 10:43 pm
#16
BE Forum Addict
Joined: May 2005
Location: Bunbury WA
Posts: 1,844
Re: HIFX,how do they make money?
Originally Posted by arkon
Got six legs I think. 
ting,
Oct 31st 2005, 11:19 pm
#17
Moomin member
Joined: Aug 2003
Location: Warnbro PERTH
Posts: 858
Re: HIFX,how do they make money?
I generally found that our high street banks (natwest etc) offered 2c less there or there abouts than the price you see on the exchange rate online...and HIFX offered us 1c there or there abouts than the online exchange...It seemed to me they were making slightly less than the banks but still a fair wack. Im sure they stipulated exchanges of $20,000 or more. Any less than that and they werent making much really...For every pound of ya dosh they make 1c and the banks are making 2c and charging a transfere fee...I went with HIFX had no probs at all
Nov 1st 2005, 6:50 pm
#18
BE Forum Addict
Joined: Jan 2004
Posts: 1,818
Re: HIFX,how do they make money?
Originally Posted by MarkandJulie
We used HIFX and had no problems at all
SS
But I am now going to use Tranzfers to move £ to $ and vice-versa as it is easily done online.
Nov 3rd 2005, 12:24 am
#19
Melbourne bound
Joined: Apr 2004
Location: Scotland
Posts: 57
Re: HIFX,how do they make money?
For forward trades, they don't just earn interest on the 10% deposit.
They also earn from the interest differential between the UK and OZ.
They buy your currency on the day you transact the forward trade. They pay UK interest rates on the amount "borrowed", and they gain OZ interest rates on the amount "deposited". Since OZ interest rates are higher than the UK, they earn the difference.
Hence the reason why they recommend that you forward trade to "reduce your exposure". I have had a look on OZFOREX, and I think they might pass back some of this benefit. According to their website, they actually offer more than the interbank rate for a 6-month forward contract. Looking into it at the moment...
Paul.
They also earn from the interest differential between the UK and OZ.
They buy your currency on the day you transact the forward trade. They pay UK interest rates on the amount "borrowed", and they gain OZ interest rates on the amount "deposited". Since OZ interest rates are higher than the UK, they earn the difference.
Hence the reason why they recommend that you forward trade to "reduce your exposure". I have had a look on OZFOREX, and I think they might pass back some of this benefit. According to their website, they actually offer more than the interbank rate for a 6-month forward contract. Looking into it at the moment...
Paul.
Nov 3rd 2005, 1:57 am
#20
BE Forum Addict
Joined: Dec 2003
Location: Adelaide - South Australia
Posts: 1,820
Re: HIFX,how do they make money?
Originally Posted by paul_d
For forward trades, they don't just earn interest on the 10% deposit.
They also earn from the interest differential between the UK and OZ.
They buy your currency on the day you transact the forward trade. They pay UK interest rates on the amount "borrowed", and they gain OZ interest rates on the amount "deposited". Since OZ interest rates are higher than the UK, they earn the difference.
Hence the reason why they recommend that you forward trade to "reduce your exposure". I have had a look on OZFOREX, and I think they might pass back some of this benefit. According to their website, they actually offer more than the interbank rate for a 6-month forward contract. Looking into it at the moment...
Paul.
They also earn from the interest differential between the UK and OZ.
They buy your currency on the day you transact the forward trade. They pay UK interest rates on the amount "borrowed", and they gain OZ interest rates on the amount "deposited". Since OZ interest rates are higher than the UK, they earn the difference.
Hence the reason why they recommend that you forward trade to "reduce your exposure". I have had a look on OZFOREX, and I think they might pass back some of this benefit. According to their website, they actually offer more than the interbank rate for a 6-month forward contract. Looking into it at the moment...
Paul.
I arranged a 6 month forward contract for about a third of our money with OzForex yesterday at 2.3942 which I'm happy with. Obviously still hoping for more upside for the remaining 2/3 rds.
