Archived Discussion Topic

hifax       started by tabitha on 18 May 2007   (13536)
Message InfoMessage
From MomcK

To tabitha

18 May 2007 6:59 AM
They make their money on the spread rate (the difference between the rate they buy dollars at and the rate they sell them to you). (same as a shop buys eggs from the farmer at 10p each and sells them to you at 15p each). What you should try to do is get the closest you can to the rate that they buy currency (the interbank rate). Use the realtime exchange rate chart on the home page of Aussiemove and watch the rate. When you are happy with the rate (when you think it is at a peak), ring HIFX and buy a forward contract (where you agree to buy a set amount of currency at an agreed rate no matter what the rate does in future). When you agree the rate with HIFX, they will offer you less than the interbank rate. Try to work out how much they will make in real money by having a calculator handy. If you are happy with them making a thousand quid for two seconds work, agree the rate they offer. If your not happy, haggle with them. We haggled
From jimboman

To tabitha

19 May 2007 2:37 PM
I don't know what you agreed on the phone the other day. If you just phoned to ask what rate they would give you (for a quote), then maybe the letter has something to do with that. If you phoned and made a trade (told them how much money you wanted to transfer, when you wanted it transferred and to where it should go) then you have already made a trade. If the letter is a 'deal confirmation', then it is too late to change your mind. The contract is legally binding from the phone call onwards. You must have some idea what you have done? What we did 1. Opened an account with HIFX 2. Watched the rates for a month solid 3. Decided to trade, rang them and agreed a rate 4. Received a deal confirmation letter with an invoice for 10% of the total trade Also, once you have agreed a rate over the phone (made a trade), the rate you agree is the rate you will get regardless of whether rates go up or down. You can't get out of it, as it is a legally binding contract. The account application form with your signature on it is a contract in itself. If you have made a trade already (without realising it?), $2.40 to the pound is not bad at the moment. The rate has been just below $2.40 for a week or so now. It rose to $2.4150 a few days back then popped back down to $2.39. If you are worried, PM me with a sample of the text in the letter (copy type it).
From jimboman

To jimboman

01 Jun 2007 6:35 PM
This is for SAMJONES. Just bringing this thread back to the top from a few weeks back. When using this site, look near the top of the page, and change the 'Format' option to Threads instead of messages. That way, you will see all messages within a particular thread when you click on the pair of glasses to the right of the messages column. (not meaning to sound patronising, because I didn't realise this until I had been using the site for about three months, so it's not like I am some kind of expert). The foreign exchange market is a bit volatile at the moment, with the pound dropping four cents in two days against the Aussie dollar. Very important under the circumstances to time your exchange right. JIM