How to get profits from US trading here in UK

[roman123]

Hi guys,

How to get my profits from US based broker. I have account in NatWest and i think to open account in $ as well. They say that they will charge me for currency exchange and all the transfers I do to US and back.
I’ve just opened brokerage account with Trade Station. They accept only dollars.
My question is how to do it, and is there any other way to do all this?

Thanks Roman

 

[DeadMoney]

if you have 2 accounts open with US based brokers, you can do a transfer by filling out the right forms. contact the broker where you want to transfer the money to and they can set you up with their forms.
once you have all their forms filled out they will transfer your cash and even open positions from the old broker to your new broker.

But NatWest sounds like a bank not a broker, in which case you could probably just use a check (if it is a checking account.) if it's a savings account, then your probably going to have to withdraw the money and redeposit it at your broker, most banks will not let you transfer money out of a savings account unless you do it in person.
I have had some banks open a checking account and let me transfer money from a savings account to a checking account, then transfer from the checking out to a broker, without going to the bank in person, but not all banks will do this.

 

[gc1]

Citibank will "clear" a USD cheque drawn on a U.S. bank without charging a fee, but they'll take 3 weeks to clear it. All wire transfers across the Atlantic incur an additional cost deducted by a correspondent bank (often $12-$15 but can be more) in addition to the sending bank's fee. You can use currency exchange firms to get a better exchange rate than banks will give but then you also have the additional wire transfer costs. If you are changing larger sums ($25,000 - $50,000 or more then consider an account at Interactive Brokers and use their idealpro fx trading service to do your exchanges - but be aware there is a $10 a month minimum commission to keep an account there open.

 

[timsk]

Hi roman,
I had an account with IB last year and did exactly as gc1 advises in his post, above. In terms of getting the most advantageous exchange rate, I suspect this is the best option. However, as you are doubtless aware, you can't perform the same trick with TradeStation as they only accept funds in USD$. I'm in the process of funding an account with them and have run into exactly the same problem. One solution is an FX broker who will make the exchange and wire the funds to TS on your behalf. I did a fairly extensive search and ended up using these people:
Foreign Currency Exchange - TorFX
The customer service is exceptional and I calculated that I saved myself many hundreds of dollars using them rather than my high street bank. So, I'm a happy bunny and would recommend them to others. The only problem I now have is that TS are saying they can't accept the funds because they come via a third party (TorFX) - and not directly from the bank account that I provided details of in my original account application. Oh Lord, give me strength! I now have to prove that the money did in fact originate from my bank account. I assume it's something to do with U.S. money laundering laws or some such - very tedious. I'll get there in the end - good luck!
HTH,
Tim.

 

[roman123]

Hi guys, thanks for your replays

Hi guys, thanks for your replays.

Tim, that’s what I was thinking to send the money through some of the FX brokers.
Thanks for the advice ToryFX.
The problem is moving profits from there here. May be taking profits monthly for less fees.
What do you suggest open account in $ in Citibank, and transfer money monthly from TS?
May be then move the money to ToryFX to exchange and move money back to sterling account?

Thanks
Roman

 

[gc1]

Remember also that even transfers within the UK of USD funds (e.g. from your bank to the currency exchange firm) is another wire transfer with another fee (£20 in the case of Citibank) so the fewer transfers you do the less is your total costs.

 

[timsk]

Hi guys, thanks for your replays.

Tim, that’s what I was thinking to send the money through some of the FX brokers.
Thanks for the advice ToryFX.
The problem is moving profits from there here. May be taking profits monthly for less fees.
What do you suggest open account in $ in Citibank, and transfer money monthly from TS?
May be then move the money to ToryFX to exchange and move money back to sterling account?

Thanks
Roman

Hi Roman,
TorFX not ToryFX - they're a Cornish firm - nothing to do with the Conservative Party! lol!
I can only speak for myself, obviously, but I want to keep things as simple as possible which means having the minimum number of accounts with as few companies as possible - so I won't be opening an account with Citibank. I think you may be able to move USD$ back to TorFX in a sort of holding account and then they advise you on the most advantageous time to trade back into your GBP£ sterling account. If you call them, ask for a chap called Mark Mckenzie - I found him to be very attentive, knowledgable and helpful. Sadly, it's not often that I'm able to say that about anyone I deal with these days!
Tim.

 

[roman123]

Hey gc1 Tim thanks

Hey gc1 Tim thanks.

Tim,
Lol ToryFX
Yes, great idea. I didn’t know that you can hold account in TorFX. So basically move the US$ from TS to TorFX and at the best time exchange and move the money to my bank in GBP. Great! I like your style.
I will definitely contact Mark.

Thanks a lot Tim

 

[timsk]

So basically move the US$ from TS to TorFX and at the best time exchange and move the money to my bank in GBP. Great! I like your style.

Yes, I think you can do that, but I may have misunderstood the situation - so check with Mark that this is right.
Tim.