Hi Does anyone have access to the following info?: If I deposit 10,000GBP with velocity, it IS possible to convert these funds to either USD or EURO. But can anyone say what the prevailing rate is? Perhaps someone who has an active account with velocity has some way of viewing this information in the members section of the website? The rate of exchange offered by my own bank is scandalous. I have asked velocity themselves but so far have not yet been able to get an answer from 'accounts'. Thanks.
At my broker I can leave that amount as 'collateral' and they give me a USD trading account. They only convert the gains/losses to my original currency.
Keep in mind there is a $20 conversion fee every time you convert currency. This will happen if you request a conversion, or automatically if you incur a loss in another currency, or if you request it converted back after an automatic conversion. As for the conversion rate, it's some sort of floating price, but I couldn't say exactly what (I believe it's the prevailing mkt settlement price for that day). There is nothing on the customer portal that displays current rates - if that is what you're looking for. I've only converted currency once with VF, but didn't notice a reduction in equity (in fact, I made a little $$, just on the exchange rate - because I was in Euros when they were rising). Also, I believe the post above is correct - so long as you don't incur a loss, you can trade in a different currency without triggering a conversion (though I don't know what good that would do you). There are a couple of VF people on this forum - maybe one will show up & clarify exactly what they base it on.
Please wait. A representative will be with you shortly. One moment please... We apologize for the delay. A representive will be with you shortly. Operator 4 says: Hello JS. My name is Operator 4 how can I help you? JS says: Hi. If I wish to convert GBP funds in my velocity account to USD or EURO, what exchange rate is currently applied? Can accounts provide me with this info? JS says: That way, I can decide whether to have my bank convert the currency before I transfer to velocity, or not. Operator 4 says: accounting does the conversion using the bloomberg conversion rate. JS says: http://www.bloomberg.com/markets/currencies/ JS says: So to confirm, 1.6011 will be applied ? JS says: It sounds a little optimistic. My bank offered 1.565 only, a very poor rate. Operator 4 says: i cannot confirm because this is the trade desk and not accounting JS says: The information could potentially save me hundreds of pounds Operator 4 says: i understand but we have no control on what rate your funds will be converted. JS says: is there some way I can contact accounting ? I dont want them to control the rate, just to simply tell me what the prevailing rate is Operator 4 says: they do not speak to clients JS says: It's an awkward position for me, because for all I know, accounts will use a rate of 1.500, costing me a small fortune Operator 4 says: sir we are not a bank and accounting have thier rules and policy in place on what steps to take when converting funds. Operator 4 says: anything else i can help you with? JS says: I don't think so. I think it reasonable that I would want to know the exchange rate accounting will use when converting my money, but the information does not seem accessible at all. Operator 4 says: do you have a live account with us? JS says: no. I am trying to open an account, in fact, but I am unsure as to whether I should send GBP first and then have velocity convert the funds to USD and EURO as required, or to have my bank convert the money to USD first, and then send USD to velocity. As I say, my bank offers a very disappointing conversion rate, and I thought velocity might be able to do it better Operator 4 says: I understand, i really cannot advise on that matter. JS says: very well JS says: have a good day Operator 4 says: same to you. Operator 4 says: bye bye
Thanks for your helpful replies, It seems a bit secretive, the whole currency conversion issue. I am stuck between a rock and a hard place at the moment - really a bit frustrated with it all.
Yeah, sounds like a run around. Play it smart though and don't ever just send it in if they are being that evasive about giving you a straight answer.
I don't think they're being evasive - it's just a sort of bureaucratic run-around, because all of these departments are separate, & don't really talk to each other. Velocity is not a bank, & doesn't make it's money on currency conversions. They have no vested interest in giving you a crappy conversion (unlike most banks and institutions who aim to profit on currency transactions). See if you can get ahold of Russel Levens (who is intimately familiar with conversions - as he's not from the US), or maybe Dale Box - I'm sure they can get you a straight answer. I've had nothing but good experiences with Velocity so far, and I'm sure that whatever conversion process they offer is comparable to anyone else you'll find in the US . . (or better).
u cannot control or tell brokerage what rates u want to convert. That is the bank job. All the brokerage will do is submit a requests to convert to their bank. Your job is to trade. Comprende? Go get yourself some mojitos
I just got burned by MF Global and was going to open an account with Velocity. Now I find out the CFTC just sanctioned them. http://www.cftc.gov/PressRoom/PressReleases/pr6138-11 "The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges against Velocity Futures, LLC, a registered futures commission merchant, for failing to supervise diligently the handling of its customer accounts."