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]

deraty said:
Below - can I send USD to a SEPA account?
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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.

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[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.

Forester said:
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.
Click to expand...

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]

daniels27 said:
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.
Click to expand...

I agree.

daniels27 said:
But still inside SEPA (the area),
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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.

daniels27 said:
there are national clearing houses
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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.

daniels27 said:
which can handle foreign currencies. Like USD between two Swiss bank accounts, etc.
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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.

daniels27 said:
Also the UK has a myriad of settlement systems, BACS, CHAPS, RTGS, etc. a bank my only be connected to some of them.
Click to expand...

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

daniels27 said:
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.
Click to expand...

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

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[deraty]

Thank you!...

 

[daniels27]

Forester said:
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.
Click to expand...

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]

Mister Sir said:
The problem I have with Forex Brokers is that Forex has "no insurance protection"!!!
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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]

Mister Sir said:
The problem I have with Forex Brokers is that Forex has "no insurance protection"!!!
Click to expand...

daniels27 said:
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.
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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...

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[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]

daniels27 said:
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.
Click to expand...

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