Forex Broker deposit.

[deraty]

IC Markets deposit question:


I have an USD account in ICMarkets.com .


Sending swift from my country to ICMarkets is 3-4%.


I have a sender Swissquote account in Switzerlan (a Sepa country) - Can I send EUR and GBP to IC Markets EUR account - do they convert it to USD? I want to trade with USD. I can send EUR/USD/GBP. Which is the cheapest option? IC Markets as a broker requires the only the sender account can be credited.



Swift is too high.



SEPA is free - how much fee do they take from conversion? From (EUR/GBP) to USD.

Below - can I send USD to a SEPA account?

Thank you.

 

[diatessaron]

I don't want to be that guy but I'll be that guy. It would take you less time to send their support an email instead of asking here. EUR is a base currency so they won't automatically convert it to USD. Trading Costs | IC Markets

 

[deraty]

Thank you..

 

[Forester]

Below - can I send USD to a SEPA account?

Well, just to learn something about SEPA:

SEPA stands for Single Euro Payments Area (IIRC). It means, only EUR can be processed between SEPA accounts, there is no possibility to send USD (or any other currency) via SEPA.

 

[daniels27]

Depending on the volume, you are better off doing the forex transaction on Swissquote. If the volume is really high, you may even want to go through IBKR for the exchange.

Well, just to learn something about SEPA:

SEPA stands for Single Euro Payments Area (IIRC). It means, only EUR can be processed between SEPA accounts, there is no possibility to send USD (or any other currency) via SEPA.

Yes, correct. But still inside SEPA (the area), there are national clearing houses which can handle foreign currencies. Like USD between two Swiss bank accounts, etc.

Also the UK has a myriad of settlement systems, BACS, CHAPS, RTGS, etc. a bank my only be connected to some of them. It is and remains a mess and a global cheap multi-currency settlement system is still far away. There will probably be free light-speed payments to the Mars before this will happen.

 

[Forester]

Depending on the volume, you are better off doing the forex transaction on Swissquote. If the volume is really high, you may even want to go through IBKR for the exchange.

I agree.

But still inside SEPA (the area),

You are right. To be truly correct, it is necessary to distinguish between SEPA in the original meaning, what is a name for the initiative of (currently) 36 countries and so called “SEPA payments” what is a shorthand for payments done (in EUR) in the framework of this initiative (there are 3 types of SEPA payments: SEPA Credit Transfer, SEPA Instant Credit Transfer and Direct Debit that can be done in two ways). So called “SEPA account” means an account capable of handling SEPA payments. I might have over-simplified it a little, originally.

there are national clearing houses

Yes, sure. Mainly in non-Eurozone states inside SEPA it is essential, e.g. in PL there is a national clearing house for PLN, in CZ for CZK, etc.

which can handle foreign currencies. Like USD between two Swiss bank accounts, etc.

I admit I am not aware about any national clearing house handling non-national currency, could you give some example? In any case, TMBK, e.g. any USD transaction is – as a must – handled by the US clearing system; Uncle Sam insists on a strict supervision what goes on with his bucks.

Also the UK has a myriad of settlement systems, BACS, CHAPS, RTGS, etc. a bank my only be connected to some of them.

Correct. BTW, in the US it is similar – ACH, Fedwire, CHIPS, ...
But we are going OT with this, I am afraid.

It is and remains a mess and a global cheap multi-currency settlement system is still far away. There will probably be free light-speed payments to the Mars before this will happen.

Well, SWIFT is not so bad, with a reasonable bank/EMI. IMO.

 

[deraty]

Thank you!...

 

[daniels27]

I agree.

I admit I am not aware about any national clearing house handling non-national currency, could you give some example? In any case, TMBK, e.g. any USD transaction is – as a must – handled by the US clearing system; Uncle Sam insists on a strict supervision what goes on with his bucks.

Maybe I am misunderstanding it. But RTGS in Hong Kong does HKD, USD, EUR, CNH

https://www.hkma.gov.hk/eng/key-fun...ancial-market-infrastructure/payment-systems/
Not sure about Armenia, Georgia, Kazakhstan etc. but taking their fees and transfer times, their local foreign currency payments seem to be cleared locally too.

 

[Mister Sir]

The problem I have with Forex Brokers is that Forex has "no insurance protection"!!!

 

[daniels27]

The problem I have with Forex Brokers is that Forex has "no insurance protection"!!!

We are talking about banks here. They are all covered by deposit protection schemes. And OP wants to invest the money on IC Markets, most likely in speculative assets, which enjoy no protection at all.

 

[Forester]

The problem I have with Forex Brokers is that Forex has "no insurance protection"!!!

We are talking about banks here. They are all covered by deposit protection schemes. And OP wants to invest the money on IC Markets, most likely in speculative assets, which enjoy no protection at all.

Really, I have not heard about any broker having some kind of deposit protection scheme. You do, @Mister Sir?
Banks and some other financial institutions like credit unions etc. are covered in many countries (I believe not everywhere at the world) but brokers not, I am afraid...

 

[daniels27]

No, they are only intermediaries. Some of them give you dedicated bank accounts with proper banks, in which case you have deposit protection. Others use their own accounts. Unless they are running an illegal Ponzi scheme, they are not using client funds for their business expenses and the risk is marginal. They are not allowed to keep funds not can they invest the funds. The problem with banks is that they have rogue traders like UBS or Silicon Valley Bank, they invest customer funds in worthless derivatives or in long term government bounds which become worthless later on. A broker is supposed to convert and reboot immediately.

 

[deraty]

No, they are only intermediaries. Some of them give you dedicated bank accounts with proper banks, in which case you have deposit protection. Others use their own accounts. Unless they are running an illegal Ponzi scheme, they are not using client funds for their business expenses and the risk is marginal. They are not allowed to keep funds not can they invest the funds. The problem with banks is that they have rogue traders like UBS or Silicon Valley Bank, they invest customer funds in worthless derivatives or in long term government bounds which become worthless later on. A broker is supposed to convert and reboot immediately.

I heard something as seggregated accounts. I guess it is that?