Impossible Forex

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

  1. luxhydrus

    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

    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..........."

    Quest......
    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.

    cheers,

    s
    :cool:
     
  4. Haley12

    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
    fluctuating
    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 forex.com.... 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.