hi guys, first I use interactive brokers.. second, total noob question as I might relocate to AU, but through investment they want certain percentages of AU stock... so my big question is converting say 11 million USD to AUD, can I get actual mid market rate when doing a currency conversion or am I gonna get charged some other rate? converting that much dollar could mean losing a few hundred thousand so want to know what I'm looking at if I go this route.. I literally know nothing one forex, I trained myself in just stock then moved to options so literally I couldn't even read a chart of what I'm looking at right now.. appreciate any help guys, thanks
Who wants certain percentages of AU stock? What's that about, never heard of that... O, wait... you mean get in Australia on an Investor Visa? If you can trade currency with IB (not everyone is allowed to do that, depending on country of residence)... you get the spot price. Currently AUD.USD is quoted like this... So if you would buy AUD you should easily be filled for 10 mln at 0.77437 USD. That's about 400 bucks of the midpoint on 10mln AUD trade. But, most people find the AUD is overvalued to the USD... so... don't burn yourself on the price...
thanks Jack, yeah through investor visa you have to hold certain percentage of money in "Australia investment" so was gonna do straight bonds, but AU isn't big so not many US ETF that I could just pop in.. yeah I think it's overvalued also... wow, so 400 is amazing.. its also IB charges a .08% rates on transfer over 5,000,000 correct? so just a few thousand to convert? THanks again
No way less in fees... on 1 mln USD trade you pay about 20 bucks in commission. Or so it says on my order ticket. So ... a few hundred in commission for a 11 mln USD trade. All up you would be out under 1k in costs, commission + spread, nowhere close to what your local bank rips you off. Although, if you would do a trade this size you should always negotiate with your bank anyway... but they would skew the market so you're still ripped off with a bank... Do you already have IB? On the investor visa, I thought you only needed to invest a few million... not 14 mln AUD. And never heard about it being a % of assets... Or is it through your company going to Australia? That might be different to personal/individual visas. Where would you go in Australia?
thanks Jack, really appreciate your help!! damn that is cheap! like dirt cheap I do have IB, I just trained myself on the mobile app as I was traveling for two years, and was easier.. so what I'm doing is getting the TWS and loading it tonight then having a look around to check out the situation, as I have only ever used app to trade... you do only need a few, about 3.5 mil to get in, that is more complex as they want some in venture capital, then some in emerging company, then rest in like bonds or Australia stock... the bigger one ( 15 mil AUD ) lets you in easier as all you need to invest is bonds or any shit in AU, and then the holding period is 1 year before applying for resident visa as opposed to I believe 3-4 years with the 3.5 size.. East side for sure, somewhere maybe around Gold Coast, like Byron Bay Area or Pomona area.. very chill out there, and I like being able to walk in barefoot to grocery stores without anyone glancing, haha.. thanks for your help man, really do appreciate your time helping. I'm gonna go load up IB for my laptop and have a look around to see wtf I'm doing.. I'll try a couple bucks and see if I did it right or not, HAHA I'll report back if I end up with a trillion Zimbabwe dollars
We don't have basements really... unless it's a carpark... or wine cellar... we do that a lot, we like wine