Funding TS Account - Currency gymnastics

Unlike my IB account, Tradestation accounts must be funded in US dollars. What is the best way to fund it? I want to obtain a good exchange rate, and be hedged against currency fluctuations.

It seems IB's IDEAL has much better rates of exchange than the high street banks. Can I convert GBP to USD using IDEAL and then withdraw the USD to my new TS account?

The dollar is at its strongest for a long while, and I don't want to be caught out if it weakens again. To hedge myself, I am considering taking a long position in USD/GBP using IDEAL Pro of the same amount as I am funding into my TS account. AFAIK IDEAL Pro is leveraged 50:1 so this won't tie up too much money.

Does anyone have any experience of such shenanegans? Does this sound sensible?

Many thanks,

Brendan

It seems IB's IDEAL has much better rates of exchange than the high street banks. Can I convert GBP to USD using IDEAL and then withdraw the USD to my new TS account?

Click to expand...

No you cant do this with IB because you can only withdraw funds in the currency of your base account.


Paul

Hmmm... this screenshot suggests otherwise:

Well I may stand corrected but I have not seen this option available to me when I
transfer funds back to my account but I admit that I have only ever used the wire transfer
option ?


Paul

Has anyone tried this?

I think Paul is correct, unless I am mistaken you can set up your IB account base currency to any of the currencies that they support, and thus the screenshot simply caters for all the possibilites that customers may have, but each individual customer can only withdraw money in his base currency. There may be some provision to transfer currency from broker to broker though. There is an IB thread on the boards, they are fairly quick to respond to questions, quicker than ther telephone respose often seems

I ransfer through Voltrex (www.voltrex.com) as mentioned in another thread earlier today. Will do exchange at a few pips off market and only fee is £15 wire charge out of account. Yet to find better.
As for hedge, just use BP futures.

I transferred in USD from IB which is free if it's your first withdrawal in a month. I converted using their IDEAL system first, but next time (if there is one) I'll see whether you can just withdraw in USD without converting as it may automatically convert at IDEAL rates when you withdraw. I'd be interested to hear from anyone who tries this.

As for hedging, BP future on CME is $62500 per contract, if you don't need to convert that much, use IB's IDEAL Pro which is also highly leveraged, and has the advantage of being able to purchase any amount between £15000 and £3,000,000.

bdholmes, Did you use the Withdrawals/Brokerage Wire Instructions to do this? Also I'm assuming your base currency is £.
Cheers, Tuffty.

Yes as in screenshot above. Yes base is £.