Loss $1000USD when I deposit in Tradestation

Discussion in 'Retail Brokers' started by qichxi, Feb 12, 2011.

  1. qichxi

    qichxi

    I wired transport 70K AUD to Tradestation on 7 Feb 2011.

    The balance advise me the deposit on 10 Feb 2011,but $69K USD!
    (AUD is more expensive than USD these days!)

    I called Tradestation first time, they advised they will check.

    Second time, I called Tradestation, they said they were not working in the night.(I am in Australia)

    Third time, They finally gave me a inquiry tick number and told me they will check. And asked me to call them again!

    I insisted tradestation forward me email to explain, but they rejected and ask me to call them.

    I have no idea how Tradestation did like that?!
    I have similar condition in other brokers, they will give me the record number immidately, and call back to me.

    How can I do? If Tradestation doesn't sovle the issue.
    (I ask Tradestation advise me the exchange rate between AUD and USD, to explain how I loss 1000USD whe I deposit)
     
  2. nltro

    nltro

    You got boned. Short and simple. (Well maybe long and unlubed).
     
  3. Interesting. Here's the exchange rate from XE.com:

    Live rates at 2011.02.14 02:25:00 UTC

    70,000.00 AUD = 70,283.56 USD
    Australia Dollars United States Dollars
    1 AUD = 1.00405 USD 1 USD = 0.995965 AUD

    Somehow there is around a 1.5% discrepancy, perhaps some type of a foreign transaction conversion fee?

    Tradestation is not some b.s. firm, they are publicly traded (Nasdaq: TRAD), and are members of FINRA, SIPC and NFA. Hopefully they will resolve your questions.
     
  4. qichxi

    qichxi

    I hope so, mate.

    But what they treat me let me feeling unsafety....

    And I have no idea why they reject to email me, but asking me to calling them.

    It's possible JP Morgan charge the fee, but anyway JP Morgan is TS's bank.
     
  5. Bingo...he should contact his financial institution that initiated the wire transfer and ask them what the fee was along with revealing any third party middle man institution that may have also charged a fee prior to the money reaching Tradestation.

    I've seen this before and you'll be surprise as what some financial institution charge as a "foreign transaction conversion fee".

    Mark
     
  6. qichxi

    qichxi

    Hi,mate

    I wired out from HSBC in AUD.

    JP Morgan/TS do the conversion from AUD to USD.
     
  7. TraDaToR

    TraDaToR

    It's pure theft. On top of fees, they can convert at prices that never traded during the day. Everybody trading in a non- domestic currency need a broker like IB to make the conversions themselves.
     
  8. This is why you should never do currency conversions during transfers. I have accounts at my bank for all major currencies that i need and use their forex desk to make conversions at near market rates. STILL sucking expensive to a rbokrer (30-60 pips at times), but heck - it beats out loosing some 1+% in some daily fixed stupid conversion rate.

    NEVER transfer with convetrsions, you get their daily fixed wide margin rates.
     
  9. Shagi

    Shagi

    That is so correct - If you hold a USD denominated account and you sending funds in foreign currency never never instruct your bank to do the conversion. The bank will simply use retail rates and you will get shafted in the process. To the O.P. next time wire it as AUD and then do the conversion yourself into USD once the funds have cleared in your brokers's account. If your broker is worth 2cents the rates should be at market ( rates we trade at & not bank retail).

    If you want to withdraw funds do the opposite convert from USD to AUD at your brokers and then wire the funds into your bank account as AUD, otherwise you will get raped again and make your involuntary contribution the bank boss's bonus.
     
  10. Banks also milk their customers in these "conversion fees" for foreign credit card transactions as well.

    http://www.travelfinances.com/Services/creditcard-conversion-fee-comparison.htm
     
    #10     Feb 14, 2011