FX trading to convert salary payments

[JackThat99]

Hi,

forced new entrant to FX - I'm paid in USD and want to spend in GBP and manage the timing of my exchanges. High street banks will rip me off so I want to find the most cost effective way to exchange. I've already looked around some of the sites recommened for newbies but they all seem to target professional traders.

1. Are internet trading sites the best for me to use on this situation?
2. Will I be able to get my salary paid directly into a trading account?
3. Can I hold in multiple currencies?
4. Are you covered by national deposit insurance schemes if the company goes belly-up?
5. What site might be the best to use given I'll be making relatively low value trades, say $5-20k.

Any advice greatly appreciated

Jack

 

[Enivid]

forced new entrant to FX - I'm paid in USD and want to spend in GBP and manage the timing of my exchanges. High street banks will rip me off so I want to find the most cost effective way to exchange. I've already looked around some of the sites recommened for newbies but they all seem to target professional traders.

To answer all your questions short - no, you can't use on-line Forex trading accounts for exchange as you the currencies aren't delivered in Forex trading, you trade contracts.

As for the details:

1. Are internet trading sites the best for me to use on this situation?

No. You won't be able to deposit dollars and withdraw pounds.

2. Will I be able to get my salary paid directly into a trading account?

Probably not, because your trading account isn't an actual bank account, the money gos through the broker's bank account.

3. Can I hold in multiple currencies?

Some brokers allow holding multi-currency accounts, but their terms aren't quite favorable.

4. Are you covered by national deposit insurance schemes if the company goes belly-up?

No. They aren't bank deposits.

5. What site might be the best to use given I'll be making relatively low value trades, say $5-20k.

That's mini-Forex, but it's still useless in your case, IMHO.