Using Forex to preserve my war chest

[Iron Condor]

Hi,

The brokers make money on spreads during transactions. So, if I don’t make any transactions, I don’t incur any charges but even receive an interest on my capital. So, in fact, it’s like a foreign currency account with one of the banks but without charges. Also, this way I would avoid all the hassle with opening ltd company accounts in the banks. Has anyone tried a similar approach? Any views/comments?

The spread and commission charges from a low cost broker will be nothing compared to the currency risk.

If you just planning on keeping funds dormant in GBP. Youll find the rate of interest in a brokerage account is very low at the moment.

It will be just as much hassle to open a brokerage account in a Ltd company name as opening a bank account.. You will have to provide the same paper work to open the account.

[singhr]

has someone been swapping the letters over on your keyboard? cos it's all come out gobbledygook.

[Paddy]

Ferox trout live deep deep down so you need a long line. The Irish locks are a good place to start.

Oh, sorry, wrong spelling.

[alreadypacked]

I always pull out as much money as divs at the end of the tax year.
Move the money to my UK account the off shore. Last year I moved my Sterling into a Euro account. This year I have a problem, I can't bring myself to move my Sterling into another currency, because the rate is so bad. I know I should move, but I can't.

[EternalOptimist]

I know nothing of this Forex of which you speak.

What I do know, is that ever since IR35 and some of the retrospective legislation, I would never leave any money in my ltd. Just enough to cover accountants bill and corp tax and VAT.
Dont make yourself a target

[OrangeHopper]

Ferox trout live deep deep down so you need a long line. The Irish locks are a good place to start.

Oh, sorry, wrong spelling.

[DimPrawn]

I think you are worrying about nothing.

Gordon isn't going to let any UK bank fail.

If a bank fails owing £100bn he and Darling will just "print" £100bn and give it to the bank and the £100bn will just add to the UK debt mountain which will be snapped up by foreign investors. Sorted.

HTH

[administrator]

bump

[PM_contract]

Hi,

I’ve been reading this forum for a while but this is my first post.

I’ve got just over £100k in my Ltd company account as a war chest. Just spoke to my bank and they said that the funds above £50k are not covered. I am looking for ways to spread the risk and to minimise losses if the pound goes does or inflation starts eating the capital.
One advice I received from a wise person (he did give me some good advices before) is to open forex accounts with a couple of brokers and to deposit some of company’s funds there. The brokers make money on spreads during transactions. So, if I don’t make any transactions, I don’t incur any charges but even receive an interest on my capital. So, in fact, it’s like a foreign currency account with one of the banks but without charges. Also, this way I would avoid all the hassle with opening ltd company accounts in the banks. Has anyone tried a similar approach? Any views/comments?