Impossible Forex

Discussion in 'Forex' started by luxhydrus, Nov 12, 2011.

  1. luxhydrus


    I want to start trading forex, I am a canadian.

    So I wanted to start with questrade forex, i tried their demo and i liked it.

    So apparently, to use forex, your canadian dollars will be auto-converted to USD + 1.5% comission.

    So basicly if i invest canadian dollars to start forex trading, and then get them back at 0% profit. i will lose 3% due to comission (1.5% first conversion, 1.5% conversion back)

    WHAT THE HELL??????
    is there a way around this?
  2. luisHK


    Sure, find a better broker - you won't have this problem with IB and I'd thought with most other brokers either.
  3. " So I wanted to start with questrade forex..........."

    a little lite in the loafers as a broker.
    useful for stock jocks.

    bolt a proper charting and order entry front end onto IB
    and you are away.

    you get a demo account with IB as part of the deal.


  4. Haley12


    You should go for other broker who charge less commission on converting your local currency to US dollar.
  5. it's simple
    open a US$ account at your bank

    a currency exchange 'bureau' usually has lower B/S rates than banks, and banks
    rates differ from bank to bank. this info can be verified online

    find the best rate and convert C$ to US$, deposit funds in US$ bank account
    fund your trading account from your US$ bank account
    when you withdraw funds from your broker, the funds sent will be in US$s to your
    US$ bank account, and you can then change them to C$s via your bank, or the
    exchange bureau

    you'll always have exchange rate 'fees', and the currency prices will always be
    I prefer to withdraw the funds I've received from my broker from my US$ account
    and make the US$-C$ exchanges myself via a local exchange bureau, as and when
    I think the exchange rate is most favorable to me
  6. Fellow Canadian here,

    Fore forex, Quest is just a white label of it's pretty bad...

    If you want to hold an account in CAD, look at Oanda, they are based in Toronto and offer accounts in quite a few currencies.

    To be honest though, you sound like you'd benefit from using demos for a while longer. First focus on a trade plan and becoming consistently profitable (over months, not just over a few trades.) Then open an account with a small amount (say, $500) and work on consistency. If you haven't blown out the account in a year, then consider "investing" more.

    Or do it the hard way and loose a few grand before washing out.