dunroving

This might belong on the general forum but as it seems most people using XE.com are in the US, sending/bringing money to/from the UK, I thought I'd start here.

Does anyone know if you can set up a "stop loss order" type thing with XE.com? I mean something along the lines of setting up an exchange order so that it triggers if the exchange rate hits a certain value (e.g., $1.55 to the £1)?

I don't have the time to keep checking every day (I get the daily email notifications) and if it does hit $1.55, I don't know how long it would take me to set up an exchange/transfer (never done it before).

poppycat

Unfortunately, XE have discontinued that option. You used to be able to specify an exchange rate and lock in a 'Bid' (XE's terminology). When/if the exchange rate hit your specified 'Bid' rate you could then purchase at that rate. According to their website, they don't intend to reinstate that option in the future....although their website gives you the option to email them requesting reinstatement.

krosfyah

Im not sure, but i'm pretty certain there are many forex trading accounts that would let you do something like this?

MsElui

i didnt know it had been stopped but i did use it once.

I just put in a rate and left it. I actually missed the email telling me the bid had gone through (dont know if i somehow missed it or it never came) and the first thing i knew about it was an email with a gentle reminder some weeks later that i hadnt fulfilled my end of the bargain by sending the English cash into them. Luckily i hadnt done the deal elsewhere so i could just get on and complete the deal with no further problems.

dunroving

Well, it's hovering at $1.58 at the moment so I might just keep an eye on it and dive in some time over the next few days. It was below $1.55 a few weeks back and looked like it would continue going in that direction, but then jumped up to $1.59 or so since then.

Still, better than the $2.00 I was stuck with when I first came home in 2006.

lansbury

There are others who offer what you want, if you particularly want the type of market order you asked about.

dunroving

Thanks, L, I saw that in the earlier post. However, I just set up my account on XE.com, so I may just wait a few days and see what the exchange rate does each day. If it gets better, or doesn't get any worse, I may just go ahead and transfer/exchange and be done with it. I haven't read anything suggesting the exchange rate will change markedly and it is currently at a typical rate to where it has been over the past many years (2006-2007 excluded, of course). I think if there was strong evidence or opinion that the dollar would strengthen against the pound I might consider setting up an order for $1.50 or similar and just wait and hope, but I've read too many threads on here where people waited and then the market went in the opposite direction! Maybe just jump in while I have the chance at a relatively decent rate.

Are these other companies easy to set up an account with? XE.com was pretty straightforward, I guess ...

Yorkieabroad

I know I can't do it with First Direct or xe.com. UKForex.com allow it for anything over (I think) GBP50,000.

Just did a transfer this morning GBP->USD - FD were at 1.598, xe.com at 1.583, UKforex 1.585

lansbury

My account is with currencyonline.com, part of HiFX. I just called the HiFX office in San Fransisco and they set it up. As you are in the UK I don't think you have access to them but deal with HiFX themselves. Either are just as easy to set up as XE.com. In fact HiFX were offering online trading before XE so that is why I have my account with them.

You might want to consider a forward contract, if it fits in with what you need. As my pension goes into my UK bank each month I know what I will have to transfer over the year. I keep an eye on the exchange rate and if it is particularly good, I book a contract ahead for when I need it. Last October the rate was good, so I booked a contract for December to transfer over my September to December pensions. You just need 10% deposit when the contract is booked. That netted me $1150 extra over the rate on the day in December the contract was executed.

currencyonline.com, so I guess HiFX, have online market order trading of the type you were looking for.

lansbury

Were they their quoted spot rate, or the rate they would sell you US dollars for. If the latter what rate were they actually selling at.

Yorkieabroad

Those were the actual rates for the transfer - not sure what it said on the front page for the spot rate as it didn't really affect me.

krosfyah

hi, so you are able to forward book the rate based on what you see on the day? I assume if the rate is improved at some forward point, you take the rate you lock into (thereby potentially losing the difference between that and the higher rate on the day of transfer?). Am i understanding that correctly?

krosfyah

It's increased pretty significantly since the start of the Egyptian unrest (and subsequent spike in oil). I'm not a betting man so ignore me, but if i had a few clams to transfer, i'd be holding off to watch where oil is going (some now saying $120/barrel). In which case, there could be a further decrease in $ value (although just because there is a realtionship between number of churches and graveyards in the village does not mean that it'ss a causal realationship).

dunroving

I like your analogy - I'll use that one in my research methods class.

Dollar has dropped a couple of cents just today. I might have missed the boat.

lansbury

Yes that is correct. I log in to my account and ask for the exchange rate and state the date in the future I wish to execute the contract. I see on the screen the rate I am offered for that contract, which I can either accept or decline. If I accept I pay a 10% deposit and that rate is locked in. If the rate goes up or down it makes no difference to the rate I get on the day the contract is executed.

I find a forward contract is better than a fixed contract for x months, because it reduces the number of transfers I do in a year and hence means less intermediary bank and wire transfers charges I have to pay. But what I like may not be to everyone's way of doing things.