Reply to: USD Account ($2)

[Joe Black]

In that case can you let us know what are the other ways?
Cater Allen are giving an exchange rate of 1.998415 and an interest rate of 4.13% (>$10K) or 4.59% (>$25K). Doesn't sound too bad to me.

Citibank have been offering 4.5% for a bit now (from $1), which is not too bad. Their Euro account likewise compared to the appalling offers in Belgium.

As Buffoon mentions though there's possibly better ways if you want to simply speculate on FX. Still, such accounts as Citibank/Cater Allen can be useful changing currency in the first place and afterwards for same-currency transfers to a broker/bank or such like if you want other options.

[mrdonuts]

high for pound against the dollar is 2.20 if anyones interested

[Numptycorner]

Someone on here tried this a couple of years ago, theorising would never hit $1.9 again, erm!

Never heard anything again on that one, so presume he ended up losing money.

[donaldduke]

....no no no no

If you want to bet on USD you don't just put it in dollars and stick it under a Texan mattress, you put in in a USD money markets and bonds that gives you 5-8% interest rate plus the FX rate. Two more possibilities are US Equities, or simply an FX fund. FX rate moves even big ones don't give you much compared to Equities. I mean yes, over 10-20 years it looks good, but year on year its pretty crap.

I dont think OP mentioned which way he was going to be betting on the dollar.
If he is betting with the Trend (ie dollar will get weaker), then holding dollar
assets like you mention will lose money.

If he is betting against the trend, then he better have big balls, only a fool would go against a multi decade chart breakout.

[BlasterBates]

....no no no no

If you want to bet on USD you don't just put it in dollars and stick it under a Texan mattress, you put in in a USD money markets and bonds that gives you 5-8% interest rate plus the FX rate. Two more possibilities are US Equities, or simply an FX fund. FX rate moves even big ones don't give you much compared to Equities. I mean yes, over 10-20 years it looks good, but year on year its pretty crap.

[donaldduke]

once the exchange has been done and the $ amount deposited into the A/C does it attract an interest rate.

Dont worry about interest. With 100:1 margin, you only need 5K pounds which can be converted to upto $1 million dollars.

The rest of your money can stay safely at home in your savings account earning interest.

[Captain Dispensable]

The holy grail would be to find three or more currencies that when exchanged between (e.g. GBP->Eur->USD->GBP and so on) would cause your initial investment to keep escalating. Then you find some automated exchange service and literally make money whilst you sleep.

Alas, like the holy grail it's probably just a fantasy but we humans love the idea of getting money for nothing. We're such lazy bar studs.

[Red 7]

When I last looked their quote was 2.0110-2.0115 that's a bit better than 1.9984 don't you think?

There's no denying that it is better, but.....

1.26 Cents per £1, well i guess it would add up if you were exchanging 100K's...

or maybe I'm just not cut out for currency speculation.

[Moscow Mule]

Now that the USD/GBP has gone over $2 (me love you long time) is this now an oppotunity to make some dosh. Anyone know the best way of doing this. Was thinking of opening a $ Account.
Any other ideas?

Spread betting?

[TheRightStuff]

This is not advice (I have to say that for legal reasons).

Look at DailyFX which is a front for FXCM. There are many, many others.

When I last looked their quote was 2.0110-2.0115 that's a bit better than 1.9984 don't you think?

once the exchange has been done and the $ amount deposited into the A/C does it attract an interest rate.

[threaded]

Nope, I meant Mr George Soros. Formerly known as György Schwartz. He's been known to make a few quid on the old currency markets...

I thought that's who you meant, but he is quite a bit older than me, so thought you meant his youngest, Gregory., who is a bit younger than me.

[Churchill]

The family have used the anglicised spellings for years, I guess you mean the youngest, Gregory? Well he's actually quite a bit younger than me. Close but no cigar.

Nope, I meant Mr George Soros. Formerly known as György Schwartz. He's been known to make a few quid on the old currency markets...

[Buffoon]

In that case can you let us know what are the other ways?
Cater Allen are giving an exchange rate of 1.998415 and an interest rate of 4.13% (>$10K) or 4.59% (>$25K). Doesn't sound too bad to me.

This is not advice (I have to say that for legal reasons).

Look at DailyFX which is a front for FXCM. There are many, many others.

When I last looked their quote was 2.0110-2.0115 that's a bit better than 1.9984 don't you think?

[threaded]

Ah, was it Mr Schwartz' little boy, György?

The family have used the anglicised spellings for years, I guess you mean the youngest, Gregory? Well he's actually quite a bit younger than me. Close but no cigar.

[TheRightStuff]

It's easy to open a USD account in the UK. Normally you need to keep a high balance in it though. It fine if, like me, you have income/expenditure in USD, but it's crap for FX speculation because the exchange rate the bank charge is rubbish.

There are far better ways to speculate on FX.

In that case can you let us know what are the other ways?
Cater Allen are giving an exchange rate of 1.998415 and an interest rate of 4.13% (>$10K) or 4.59% (>$25K). Doesn't sound too bad to me.