Which brokers, if any, let you, for example, fund your account in USD, buy (without leverage, obviously) EUR, and withdraw the EUR?
The sort of retail forex brokers you will come across here are not set up for that sort of thing. They are not money changers. There might be some one-time account manipulations that can be done, but you couldn’t do it regularly and I’m sure there are all kinds of restrictions to prevent money laundering.
Money laundering…never thought of that. Thanks for the quick reply.
But isn’t that as much of a problem with money changers?
No. Their business is exchanging one currency for another. A retail forex broker’s business is facilitating trade in future-delivery contracts - ones that don’t actually every come to fruition because they are rolled forward.
Retail brokers do spot too.
Spot forex is an agreement to do a currency exchange 2 business days hence. As such, it can be thought of like a very short duration futures contract. It is not an immediate exchange.
That’s if the broker only does bank wire deposit/withdrawal, I think. Do any brokers allow multiple-currency accounts so you don’t have to convert back for a single-currency account to withdraw? Or something?
I think Oanda offers multi-currency account - their underlying business also does currency exchange, so they’re a bit of a different animal than most retail brokers - but I don’t really know what it’s all about. Regardless, that doesn’t change the meaning of the term “spot” as defined previously.
[B]Mr Mormon[/B], I think you are confusing yourself.
Most forex brokers do spot transactions, only. They do not operate currency-exchange kiosks, and they do not engage in swaps, options or futures.
John (rhodytrader) is absolutely correct in his terminology. Here is the definition of a spot transaction, as it appears in the BIS Triennial Central Bank Survey:
Spot transaction: single outright transaction involving the exchange of two currencies
at a rate agreed on the date of the contract for value or delivery (cash settlement)
within two business days.
That’s the transaction you are entering into each time you make a spot forex trade.
The 2-day settlement defined above has nothing to do with wire deposits or withdrawals, contrary to your statement above.
Then what [B]do[/B] you call a credit/debit card deposit, online trade, and credit/debit card withdrawal? Can that be a matter of seconds or minutes? And thanks, I have to look for brokers like Oanda that offer multi-currency accounts.
i think fxopen might, not sure though.
I can’t get to the FXOpen homepage.