Forex for a trader
Standard bank forex trading fees

Standard bank forex trading feesGoing abroad? Need to get cash to friends or family outside the country? Or making offshore transfers? Convert or send money hassle-free with the forex service you prefer. Some of the benefits. Speed and convenience. See the latest exchange rates for multiple currencies. Locate the closest foreign exchange outlet. Buy foreign currency to swipe or withdraw while abroad with a Shyft card. If you're in one of SA’s major metros, you can order forex, and we’ll deliver it to you at work in 24 hours. When travelling abroad, it makes sense to carry some foreign currency notes for incidentals. Planning to use your card overseas?

Notify us in advance, and we won't need to authenticate every purchase. Stay on the right side of forex and exchange control rules. Enjoy a hassle-free holiday with a TravelWallet card. Swipe and draw cash safely and simply. Buy foreign currency to swipe or withdraw while abroad with a Shyft card. Pay anyone, anywhere or receive payments from around the globe using traditional banking channels. Send or receive cash quickly and securely across a network of more than 200 countries and thousands of outlets. Travelling to a foreign country is exciting, but it can become very expensive, very quickly. Fortunately, there are strategies for travelling for less. Going away as a family is an opportunity to share some memorable moments. Here are a few tips to make your next trip a great experience for the whole family. Travelling can be a stressful experience when things go wrong like delayed flights or lost luggage.

What does Travel Insurance cover, and when should you use it? Find out here. Planning an international holiday? Don’t forget to buy your forex. Here are a few tips to help when purchasing currency for your next trip. Currency trading: How I turned $100 000 into $1m-plus in 30 days – Joburg auditor. Ricky Jacobsohn of Johannesburg: whizz at global currency trading. Shrewd currency trades based on big news events were the winning moves for a Johannesburg auditor who won Standard Bank Webtrader’s first global trading competition. Ricky Jacobsohn, 25, transformed virtual spending money of US$100 000 to more than US$1,3m in 30 days. He was awarded the title of best investor and a cash prize of US$6 250. About 1 300 people entered the competition aimed at familiarising South Africans with do-it-yourself investing on world markets through the domestic web-based trading platform.

It is easy to buy and sell shares and other securities in New York, London and other markets using your foreign currency investment allowance. You do not need SA Reserve Bank permission to invest your first R1m. In order to invest an additional R4m each year, you will require the approval of the South African Revenue Service. The investment competition used virtual currency, with each participant given US$100 000. Jacobsohn, an auditor who is studying towards a bachelor of commerce degree, tells BizNews that his strategy from the outset was to win the one-month challenge. “I saw opportunities in currencies rather than shares, because of the gearing you can get on currencies.” Jacobsohn says he always keeps up-to-date with current events, but did more research than usual with a view to looking out for trading opportunities. “When you trade in currencies it is the most direct way to play economies. I saw there was a meeting at the European Central Bank and that the policymakers were going to make decisions that would affect the European economy,” he says. “I thought, based on that, the Euro would weaken against the US dollar. I took maximum gearing.” That trade, of US$60 000 for about US$10m exposure, carried Jacobsohn through the competition. “The Euro lost significantly,” reflects Jacobsohn. Currency trading enables you to make big money fast. Be warned: this is a high risk arena.

You can lose money trading in global currencies very quickly, too. Next, he “played small here and there” until he spotted another big news event with potential to make money by trading in Spot FX. “In week three, there was another opportunity. Scotland was voting to leave the UK. There was news that the pound was depreciating a lot, however my gut feel was that Scotland would vote ‘no’.” He says he saw that polls recorded a high number of undecided voters. “I thought if they were undecided they would stick with what they know,” says Jacobsohn of Scottish voters. The young investment enthusiast bought the pound sterling against US dollars and was proved right when the referendum results were announced. “At that stage, I had an incredible lead. I thought that if someone beat me they would have to be trading something similar. So, I used the fact that I had more money and took an exposure bigger than everyone else. I was buying pounds for a couple of days,” he says. Jacobsohn says he had been tempted by Alibaba, the biggest initial public offering ever on Wall Street. However, he couldn’t get the same gearing as he could with currencies and so he decided against it because he wanted to win. The competition winner says he would not invest the way he did when he competed in the Standard Bank Webtrader challenge. “The gearing that I took I would never do with my own money. I took a gamble with gearing, because my idea was to win the competition.

” Jacobsohn has never invested in the real markets, however he says that his win has “sparked my interest”. First, though, he says he will complete his articles because getting his career on track is his priority. “I want to build a stable career for myself,” he says. Jacobsohn, known to other traders as UrbanLegend, is the first person to be awarded the Webtrader trophy. Fatima Essop Mohamed of Standard Bank Webtrader says: “As is the nature of trading, those participants who stayed abreast of current affairs and traded in or out accordingly (intra-day) reaped the benefits and maintained positive growth.” She says only 5% of participants made a profit of 50% and more, while 20% lost more than 20% of their virtual funds. “As this was a trading game over a short period, stocks were not a popular choice. Instead, participants opted to trade geared instruments that allowed leverage of the initial US$100 000 in virtual funds,” notes Essop Mohamed. The most popular instruments traded in the competition, she says, were: FX – EURUSD, GBPUSD and XAUUSD; and CFDs – AAPL:xnas, DAX. I, SP500.I. Currency trading: A primer. Forex or spot FX trading allows for the buying of one currency against the selling of another. Currencies trade in pairs, like the euro-US dollar (EURUSD) or US dollar-Japanese yen (USDJPY), explains Essop Mohamed, pointing out that Standard Bank Webtrader provides access to more than 160 forex crosses. “Trading on margin, as is the case with forex trading, allows investors to buy and sell assets that have a greater value than the capital in their account. It is important to note that margin trading involves a large amount of risk.

Since a position held exceeds the actual value of the account, a trader could incur substantial losses if the market moves against his or her position,” she says. Investing vs trading. “Investing and trading are opposing methods both attempting to profit in financial markets. The aim of investing is to gradually amass wealth over an extended period of time usually through the buying and holding of shares,” emphasises Essop Mohamed. Trading involves more frequent buying and selling of favourites like CFDs and forex with the goal of generating returns that outperform buy-and-hold investment strategies, she points out. Set your sight on more – Start trading with our Online Trading platform. Enjoy a one stop solution with SC Online Trading account. Gain access to 15 major stock exchanges in the world and trade with greater convenience on our multi-channel platform, where you can trade via any web-enabled devices, tablets, and mobile devices. Connectivity. Set your sight on trading horizons that stretch from Europe to the U. S. and Asia. Access securities and Exchange Traded Funds (ETFs) in just a few clicks. An ETF (Exchange Traded Funds) selector tool to help filter ETFs available for online trading. Technical and fundamental stock analysis tools to help analyse market movements and identify the market entry or exit points. Profit and loss calculator to provide clarity on fees and charges on trading transactions, and help calibrate the target buysell prices.

Customer Account Review (CAR) declaration and transfer of shares are easily done, saving time and providing the convenience of managing your wealth on-the-go. Smart & Seamless Trading. Low Brokerage Fees. Trade with low brokerage fees and zero custody fees. SCB Priority Banking customers enjoy no-minimum-transaction brokerage fees and no custody fees for all transactions. Current Fees (with effect from 1 June 2018) -1000Ґ in JPY currency (1070Ґ with 7% GST) -$100 in HKD currency (HKD 107 with 7% GST) 1 To be a Priority Private Client, you need to top up and maintain your account balances with the bank at least S$1.5 million in eligible products. Your membership and eligibility for the programme will be reviewed twice annually in the month of June and December. If, at the time of review, you have maintained a minimum of S$1.5 million in assets under management for the preceding 6 months, your membership will be renewed for a period of another six months, starting in July or January respectively. Please visit av. sc. comsgcontentdocssg-priority-private-final-tncs. pdf for full T&C and details. 1 Applicable for Priority Private banking client with Accredited Investor status with the Bank. To successfully declare to the Bank as an Accredited Investor status, an individual must have an annual income in the preceding 12 months not less than S$300,000 (or its equivalent in foreign currency) OR have total net personal assets exceeding S$2,000,000 (or its equivalent in foreign currency). Terms and conditions apply. Click sc. comsgterms-and-conditionssgoeqppai for the full terms and conditions. *Minimum brokerage amount is calculated in the currency of the shares traded in. *To qualify as a Priority Banking customer, an Eligible Customer must have successfully established a Priority Banking relationship with the Bank and maintain at least S$200,000 (or its equivalent in another currency) of assets under management with the Bank.

Share Transfer Fees. Please be reminded that all share transfers are subjected to below fee. Current Fees (with effect from 1 August 2016) What is Wealth Lending? Our Wealth Lending Facility is an overdraft facility obtained against financial assets held with, and acceptable to the Bank up to a percentage of their prevailing market value. * The LTVs above are indicative only and are subject to immediate change by the Bank at its sole discretion. Your available credit limit under this facility will be determined based on a range of factors such as the type of financial assets you use as a security pegged together with its prevailing market value and the concentration of the financial assets within your portfolio held with the Bank. The credit limit available to a Borrower is subject to the BankЂ™s internal assessment and valuation, and may be reviewed from time to time. Loan to Value (LTV) + Security Margin (as defined in our BankЂ™s Investment Product Terms) = Market Value (100%) To find out more about your equities holdingsЂ™ Loan To Value (LTVs), you can either refer to the LTV columns in your portfolio or contact your Relationship Manager. Risks of Wealth Lending. Depending on market conditions, the value of your collateral may fall. You may then be called upon to Ђњtop upЂќ your account by substantial amounts or to repay your outstanding credit facilities at short notice. If you fail to do so, the Bank may have to liquidate your collateral at a loss to repay any amount outstanding and you would be liable for any amounts still owing subsequently. It is important to note that Wealth Lending can also magnify investment losses.

The interest rate of your credit facility may increase, resulting in a higher interest payment amount for the facility. Foreign exchange risks. Your credit facilities may be subject to additional foreign exchange risks if they are taken in a different currency other than that of your collateral. If the exchange rate moves against you, the repayment amount of the facilities may be affected. Change in credit Loan-to-value (LTV) ratio. LTV ratios are subject to periodic review and may change within a short period of time. When the LTV of your collateral is reduced, you will need to have sufficient liquidity to repay your outstanding credit loan or pledge additional collateral as security for the credit facility. Take Loan on Your Equities. Get Rewarded For Trading. Online Trading User Guide. Learn about the features of our upgraded Online Trading Platform. Mobile Trading Guide. CURRENT SAVINGS ACCOUNT.

Visit our branch with complete application forms below prior visiting the branch. With effect from 1st January 2017, clients are required to complete the Common Reporting Standard (CRS) form as part of the Online Trading account application process. This document is for general circulation only and does not constitute an offer, recommendation or solicitation of an offer to enter into a transaction or adopt any hedging, trading or investment strategy. It has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice nor an investment recommendation. It has been prepared without regards to the specific investment objectives, financial situation or particular needs of any person. You should seek advice from a financial adviser on the suitability of an investment for you, taking into account these factors before making a commitment to invest in an investment. You are fully responsible for your investment decision, including whether the Online Trading service is suitable for you. The productsservices involved are not principal-protected and you may lose all or part of your original investment amount. Deposit Insurance Scheme. Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. For clarity, these investment products are not deposits and do not qualify as an insured deposit under the Singapore Deposit Insurance and Policy OwnersЂ™ Protection Schemes Act 2011. Online Share Trading. Open up a new world of investment options when you use our online platforms to trade on local and global financial markets. Some of the benefits. Direct access to companies listed on the JSE Free online training and face-to-face courses on how to trade Trade shares, futures contracts, ETFs, CFDs and warrants Access to our on-call team of experienced consultants Live data, with company news and info Market data including gainers and losers, historic highs and lows Custom watch lists and price alerts via SMS or email Low admin and brokerage fees.

Training and education material are free See our rates, fees and costs. Register online and get the first month free. Contact Standard Bank Securities South Africa 0860 121 161 International +27 11 415 5000 Send us an email email protected Commissions, Charges and Margin Schedule. New legislation in respect of VAT has been promulgated resulting in services rendered on offshore equities to a Resident which were previously Zero Rated will now be subject to VAT at the current prevailing rate. In terms of the 2017 Taxation Laws Amendment Bill, which was Tabled in Parliament on the 25th October 2017, the Value-Added Tax Act No.89 of 1991 (the “ Act”) was amended to specifically exclude debt securities, equity securities or participatory securities from the zero-rating provisions of Section 11(2)(g)(i) of the Act. As of the 1st of April 2018 services rendered to a resident of the Republic of South Africa on debt securities, equity securities or participatory securities situated in any export country will be subject to VAT. Please take note that VAT will therefore be levied on ALL applicable fees and charges effective 1 April 2018. An annual administration Fee ("Administration Fee") of 20 (twenty) basis points will be charged in respect of each and every trading account held with The Standard Bank of South Africa Limited under the Terms of Business ("Terms"). The administration Fee is calculated as follows: The daily closing value of the Client's open share positions calculated as per close of the New York Stock Exchange x 20bps x1365. The Administration Fee is calculated daily and billed monthly in arrears. Advisory services are provided to clients through SBG Securities (Pty) Ltd (acting through its Stockbroking Division). Advisory fees may be charged and such fees will be deducted off your trading account held with the Standard Bank of South Africa Limited under the Terms. Please contact your equity advisor for further details in this regard. Net Free Equity is defined as: The value date cash balance on the main (base) trading account. Plus or minus the value of any unrealized profits or losses from open trade exposures in FX and CFDs on the main trading account. Minus the value of Standard Bank’s margin requirements for open trade positions on all accounts. Account Value is defined as: The cash balance on your trading account Plus or minus the value of any unrealised profits or losses from open trade exposures in FX Spot and Spot Precious Metals on your trading account.

The following interest rates apply to funds deposited with Standard Bank: No interest will be paid for positive Net Free Equity Interest will be charged at market ask rates plus 2% Interest Calculation and Settlement. Currency Conversion Fee. A 1.0% currency conversion fee will automatically be applied to all trades that are done on an account where the instrument currency is different from the account currency. If a client trades a EUR stock on a USD account, the amount in EUR will be converted back to USD using the current Spot FX rate at the time of trade. Thereafter the above mark-updown added. These charges are levied on the client account when the trade is executed. In the case of internal transfers between subaccounts, a Conversion fee of 1% will be applied as a separate charge. Equity Research and Stock Screener. There are annual IRS reporting obligations for each income stream earned on US Exchanges. Depository Receipt Fees. Overnight Financing (TomNext Rollover) For all margin products you finance the traded value through an overnight creditdebit charge. If you open and close a margin position within the same trading day, you are not subject to overnight financing. If the financing credit is negative it will be debited from your Webtrader account. Overnight Financing on CFDs. When you hold a Single Stock CFD position (or an ETFETC CFD position) overnight i. e. have an open CFD position at close of market on the Stock Exchange, your CFD position will consequently be subject to the following credit or debit: When you hold a long CFD position, you are subject to a debit calculated on the basis of the relevant Inter-Bank Offer Rate for the currency in which the underlying share is traded (e. g. LIBOR) plus a mark-up (times Actual Days360 or Actual Days365).

When you hold a short CFD position, you receive a credit* calculated on the basis of the relevant Inter-Bank Bid Rate for the currency in which the underlying share is traded (e. g. LIBID) minus a mark-down (times Actual Days360 or Actual Days365). The creditdebit is calculated on the total nominal value of the underlying Stock(s) at the time the CFD contract is established (whether long or short). Should the relevant Inter-Bank Bid Rate minus the mark-down result in a debit as opposed to a credit, then you will pay the finance charge. No Overnight Financing on US2000 Index Tracker. As the price of the US2000 Index-Tracking CFD tracks the price of the underlying Futures Contract no overnight financing shall apply. TomNext Rollover on FX Spot. All open FX positions held overnight are subject to a debit or credit interest rate revaluation to reflect the position being rolled over to a new Value Date. The operation known as the TomNext Rollover is applied to spot positions held at 17:00 Eastern Standard Time (New York time) on any given trading day. The 'rollover' is made up of two components, namely the tomnext swap points and financing of unrealised profits or losses. The accumulated combined rollover credit or debit is addeddeducted from the previous opening price of the position. Borrowing costs on short overnight positions. A borrowing cost may be applied to short CFD positions held overnight. This borrowing cost is dependent on the liquidity of the underlying Stocks and may be zero (0) for high liquidity Stocks. The specific borrowing rate for a Single Stock CFD can be seen as the 'Borrowing Rate' under 'Account' > 'Trading Conditions' > 'CFD StockIndex Instrument List' in the trading platforms. When selling a Single Stock CFD, the borrowing cost for holding the position overnight is shown in the CFD Trade module in the 'Estimated borrowing cost per day' field.

The borrowing rate will be fixed when the position is opened and will be charged on a monthly basis. Please be aware, that for certain corporate action events, the borrowing rate on the short position may be reset to the current rate in the market, upon the execution of the corporate action. Taxation on UK Shares. Taxation on Singapore Shares. Taxation on Hong Kong Shares. Taxation on French Shares. For French large cap Shares a Financial Transaction Tax (FTT) of 0.20% apply to all buy trades. The full list of the 109 affected Shares can be found in the official application decree (in French). Taxation on Italian Stocks and Derivatives. SEC Section 31 Fees for US Shares. Standard Bank passes on to clients the SEC Section 31 fee of $22.40 per million (0.224 BP) on share SELL transactions where client orders are entered directly into the underlying market. This fee applies only to US exchanges. Pre-Opening Order Fills in US Markets. In US markets, share liquidity can be consolidated from a number of sources in addition to the primary exchanges. When there is a delay in the opening of the primary exchange, orders can be filled from these other sources before trading commences on the primary exchange.

Exchange Agreements and Live Pricing. Data subscriptions for real-time prices At Standard Bank all equities trade on actual market data from the stock exchanges. To receive and trade on real-time market data, you will have to subscribe independently to the individual exchange via third party providers. A subscription to live price data from an exchange gives you access to live prices on Shares and ETFsETCs from the particular exchange. An Online Subscription Tool is available in the Trading Platform. In the tool, you will find a list of available exchanges and news services alongside the applicable monthly fees. You will be able to subscribe and unsubscribe to services of your choice. Further information can be found in the Subscription Tool guide, which is also available on the Trading Platform. Level 1 or Level 2 data Level 1 price data refers to the first level of the order book on the exchange. With a Level 1 subscription you can see live, streaming, bid and offer prices. With a Level 2 price data subscription you can see live, streaming prices as with Level 1 but on top of this you can see the market depth of bidoffer prices and the amounts available at each price point. Level 1 and Level 2 Exchange Data Fees. Standard Bank forex app cuts the mustard.

OVERVIEW OF Standard Bank Group Ltd. - JSE:SBK. If ever South Africans were going to wise up about foreign exchange (forex) opportunities, it is probably this week. The rand – already one of the most volatile and liquid currencies in the world – has provided a real roller-coaster ride moving around sharply as the prospect of a recall of the finance minister raises its head. For this reason, I have been particularly interested in identifying platforms that allow me to swiftly move around forex from my main banking partner: Standard Bank. Over the past couple of weeks, I have heard the Standard Bank advert on radio for its “Shyft” app, which is supposed to make it easy to transact forex in dollars, euros, pounds and Aussie dollars. My primary reason for taking an interest in the app was trying to fund my Saxo Bank stockbroking account without having to wait in the queue at the bank to fill in forms. My main problem with the advert: They neglect to tell you that it is “Shyft” (with a “y”) and it’s not easy to find on the app stores if you just type in “Standard Bank”. However, after standing in a non-moving, Standard Bank (Rosebank branch) queue for an extended period of time, I got motivated to actually find this app. After a bit of searching, I located it and installed it on my iPhone. Sign up is easy and the turnaround time on the verification e-mail and the interface is nice and easy to operate. In terms of functionality, you are ultimately able to to make online purchases using their virtual cards, or pay an international beneficiary (like my Saxo account) and I believe that you can even use the Shyft physical card to swipe or withdraw from an ATM when travelling overseas. The one aspect which momentarily stumped me, was the funding of my Shyft wallet. I had assumed that it would sync with my bank accounts and allow me to simply transfer funds that way. Ultimately, I realised you had to set it up as a beneficiary and then make an internet transfer into your wallet. The transfer was near instantaneous and more importantly, payment into the beneficiary account (Saxo) was funded on the same day. In comparison, when I had funded the Saxo account using the paper method on a Friday, it had taken until Tuesday the following week, for funds to reflect. The interface is easy to understand and you get a live rate for your transactions in the app. In terms of costs, you are charged a flat transaction fee of US$14, GBP10, EUR12 and AUD18 so it’s probably not ideal for a lot of smaller transactions, but for a retail investor keen to move some money around, it’s not the worst rate going. For South Africans, the reality is that currency volatility is a major issue for those whose money is tied up in rands. The ability to move money around, in line with foreign exchange regulations, is going to be a major issue in the coming months and Standard Bank have done nicely to provide a tool that is easy-to-use and fund.

Europe & Asia Pacific. Stanbic’s Bank's Foreign Exchange (FX) team comprises innovative and experienced staff with a broad skill set catering to a diversified international and domestic client base. We provide our clients with a full suite of products, across both standardised and customised solutions, to meet all their needs. Cross-border transactions are subject to foreign exchange regulations and exposure to the risks of fluctuating currencies. Stanbic Bank's representation and experience in emerging markets, and our presence in all major financial centres, enables us to deliver a 24-hour foreign exchange service which is sensitive to regulatory and risk factors in emerging markets globally. Standard Bank is a leading market maker in the South African Rand (ZAR). We also trade all major currencies as well as numerous African and other emerging markets currencies. We ensure that our clients always have access to our expertise and market knowledge, and to our dedicated customer-focused teams through electronic, telephonic and personal interaction. We provide our clients with access to our 24-hour internal trading capability. Our commitment to pricing and liquidity is evident through our large client base as well as our market share as a leading flow house in Africa . Dedicated Global Markets Sales Managers provide a single point of entry into Standard Bank's Global Market's services, competencies and expertise.

We have on-the-ground experts in 30 dealing rooms across the globe, providing specialist knowledge of their local markets. We provide a suite of electronic forex trading solutions that enable online dealing. International banking Foreign Exchange. The integration of FX Trading into International Banking is another way we are making your foreign exchange experience simple and efficient. International Banking Foreign Exchange (IBFX) helps to make the foreign payment process more manageable with an easy to use, simple platform. The platform allows you to conveniently initiate and track payments anywhere, anytime. You are able to secure spot rates instantly and guard against exchange rate volatility. Create your payments on the international banking system and execute your foreign exchange transactions seamlessly and securely on one system. IBFX combines the benefits of International Banking and FX Trading: Easy set up Seamless processing of international cash requirements Competitive rate Secure platform that enables segregation of duties and individual limits Real-time dealing Electronic Balance of Payments (BOP) form Fast and reliable Integration with main stream accounting packages Historic search. Our FX e-Channel offering includes functionality encompassing all aspects of the foreign exchange cycle where an electronic interface is used. While the benefits associated with using FX e-Channels are, to a degree, dependent on the nature of your business, there are broad benefits to be gained by all participants in the foreign exchange market: Real-time dealing and execution Streaming of rates Deal management Indicative rates Trading from any internet-based computer Archive search and record of historical and related deals Limit orders, including stops, linked and profit-take Price transparency and consistency Online confirmation. FX e-Channels allows your entire transaction process to be presented in a clear and concise manner that fully empowers you to make informed decisions on the relevant transactions. By transacting electronically, a clear audit trail is established and immediately available making it easy for clients to review past transactions, pricing and associated details. Product offerings.

We provide two wholesale product offerings, eMarketTrader and FX Trading, packaged to suit the needs of your business. Trading capabilities in all major currencies , including G10, numerous African currencies as well as many other emerging market currencies Trading in Renminbi (RMB), the official currency of the People's Republic of China . Clients involved in cross-border trade with China can denominate their transactions with China in RMB, reducing risk for the importerexporter, and potentially improving the competitiveness and stability of pricing Customised foreign exchange hedging solutions , including: Spots Forwards (outright forwards and swaps) Options (listed and OTC) Structured solutions (listed and OTC) (Dependent on in-country regulatory conditions) Exchange traded foreign exchange hedging solutions , including: Currency futures Options on currency futures Currency reference warrants (Dependent on in-country regulatory conditions) 24-hour foreign exchange trading capabilities via our major trading hubs in Johannesburg, London and New York, with a night desk in Johannesburg to cover the Asian market session. Online electronic trading through our FX e-Channel solutions : FX Trading system eMarketTrader International Banking Foreign Exchange. Our value-added services include : Providing historical foreign exchange rates Currency monitoring, hedging advice, technical analysis and economic research A foreign exchange relationship centre (FRC) that provides guidance and advice on the financial aspects of all international trading activities including foreign exchange risk management, foreign currency cash management, online dealing and payment solutions, exchange control and international trade payment mechanisms (please ensure different bullets for sub-sections) How To Pay Your Forex Broker. The forex market, unlike other exchange-driven markets, has a unique feature that many market makers use to entice traders. They promise no exchange fees or regulatory fees, no data fees and, best of all, no commissions. To the new trader just wanting to break into the trading business, this sounds too good to be true. Trading without transaction costs is clearly an advantage. However, what might sound like a bargain to inexperienced traders may not be the best deal available – or even a deal at all. Here we'll show you how to evaluate forex broker feecommission structures and find the one that will work best for you. Commission Structures. Three forms of commission are used by brokers in forex. Some firms offer a fixed spread, others offer a variable spread and still others charge a commission based on a percentage of the spread. So which is the best choice? At first glance, it seems that the fixed spread may be the right choice, because then you would know exactly what to expect. However, before you jump in and choose one, you need to consider a few things.

The spread is the difference between the price the market maker is prepared to pay you for buying the currency (the bid price), versus the price at which he is prepared to sell you the currency (the ask price). Suppose you see the following quotes on your screen: "EURUSD - 1.4952 - 1.4955." This represents a spread of three pips, the difference between the bid price of 1.4952 and the ask price of 1.4955. If you are dealing with a market maker who is offering a fixed spread of three pips instead of a variable spread, the difference will always be three pips, regardless of market volatility. In the case of a broker who offers a variable spread, you can expect a spread that will, at times, be as low as 1.5 pips or as high as five pips, depending on the currency pair being traded and the market volatility level. Some brokers may also charge a very small commission, perhaps two-tenths of one pip, and then will pass the order flow received from you on to a large market maker with whom he or she has a relationship. In such an arrangement, you can receive a very tight spread that only larger traders could otherwise access. Different Brokers, Different Service Levels. So what is each type of commission's bottom line effect on your trading? Given that all brokers are not created equal, this is a difficult question to answer. The reason is that there are other factors to take into account when weighing what is most advantageous for your trading account. For example, not all brokers are able to make a market equally. The forex market is an over-the-counter market, which means that banks, the primary market makers, have relationships with other banks and price aggregators (retail online brokers), based on the capitalization and creditworthiness of each organization.

There are no guarantors or exchanges involved, just the credit agreement between each player. So, when it comes to an online market maker, for example, your broker's effectiveness will depend on his or her relationship with banks, and how much volume the broker does with them. Usually, the higher-volume forex players are quoted tighter spreads. If your market maker has a strong relationship with a line of banks and can aggregate, say, 12 banks' price quotes, then the brokerage firm will be able to pass the average bid and ask prices on to its retail customers. Even after slightly widening the spread to account for profit, the dealer can pass a more competitive spread on to you than competitors that are not well capitalized. If you are dealing with a broker that can offer guaranteed liquidity at attractive spreads, this may be what you should look for. On the other hand, you might want to pay a fixed pip spread if you know you are getting at-the-money executions every time you trade. Slippage, which occurs when your trade is executed away from the price you were offered, is a cost that you do not want to bear. In the case of a commission broker, whether you should pay a small commission depends on what else the broker is offering. For example, suppose your broker charges you a small commission, usually in the order of two-tenths of one pip, or about $2.50 to $3 per 100,000 unit trade, but in exchange offers you access to a proprietary software platform that is superior to most online brokers' platforms, or some other benefit. In this case, it may be worth paying the small commission for this additional service. Choosing a Forex Broker. As a trader, you should always consider the total package when deciding on a broker, in addition to the type of spreads the broker offers. For example, some brokers may offer excellent spreads, but their platforms may not have all the bells and whistles offered by competitors. When choosing a brokerage firm, you should check out the following: How well capitalized is the firm?

How long has it been in business? Who manages the firm and how much experience does this person have? Which and how many banks does the firm have relationships with? How much volume does it transact each month? What are its liquidity guarantees in terms of order size? What is its margin policy? What is its rollover policy in case you want to hold your positions overnight? Does the firm pass through the positive carry, if there is one? Does the firm add a spread to the rollover interest rates? What kind of platform does it offer? Does it have multiple order types, such as "order cancels order" or "order sends order"? Does it guarantee to execute your stop losses at the order price? Does the firm have a dealing desk? What do you do if your internet connection is lost and you have an open position? Does the firm provide all the back-end office functions, such as P&L, in real time? Even though you might think you are getting a deal when paying a variable spread, you may be sacrificing other benefits.

But one thing is certain: As a trader, you always pay the spread and your broker always earns it. To get the best deal possible, choose a reputable broker who is well capitalized and has strong relationships with the large foreign-exchange banks. Examine the spreads on the most popular currencies. Very often, they will be as little as 1.5 pips. If this is the case, a variable spread may work out to be cheaper than a fixed spread. Some brokers even offer you the choice of either a fixed spread or a variable one. In the end, the cheapest way to trade is with a very reputable market maker who can provide the liquidity you need to trade well. Currency trading: How I turned $100 000 into $1m-plus in 30 days – Joburg auditor. Ricky Jacobsohn of Johannesburg: whizz at global currency trading. Shrewd currency trades based on big news events were the winning moves for a Johannesburg auditor who won Standard Bank Webtrader’s first global trading competition. Ricky Jacobsohn, 25, transformed virtual spending money of US$100 000 to more than US$1,3m in 30 days. He was awarded the title of best investor and a cash prize of US$6 250. About 1 300 people entered the competition aimed at familiarising South Africans with do-it-yourself investing on world markets through the domestic web-based trading platform.

It is easy to buy and sell shares and other securities in New York, London and other markets using your foreign currency investment allowance. You do not need SA Reserve Bank permission to invest your first R1m. In order to invest an additional R4m each year, you will require the approval of the South African Revenue Service. The investment competition used virtual currency, with each participant given US$100 000. Jacobsohn, an auditor who is studying towards a bachelor of commerce degree, tells BizNews that his strategy from the outset was to win the one-month challenge. “I saw opportunities in currencies rather than shares, because of the gearing you can get on currencies.” Jacobsohn says he always keeps up-to-date with current events, but did more research than usual with a view to looking out for trading opportunities. “When you trade in currencies it is the most direct way to play economies. I saw there was a meeting at the European Central Bank and that the policymakers were going to make decisions that would affect the European economy,” he says. “I thought, based on that, the Euro would weaken against the US dollar. I took maximum gearing.” That trade, of US$60 000 for about US$10m exposure, carried Jacobsohn through the competition. “The Euro lost significantly,” reflects Jacobsohn.

Currency trading enables you to make big money fast. Be warned: this is a high risk arena. You can lose money trading in global currencies very quickly, too. Next, he “played small here and there” until he spotted another big news event with potential to make money by trading in Spot FX. “In week three, there was another opportunity. Scotland was voting to leave the UK. There was news that the pound was depreciating a lot, however my gut feel was that Scotland would vote ‘no’.” He says he saw that polls recorded a high number of undecided voters. “I thought if they were undecided they would stick with what they know,” says Jacobsohn of Scottish voters. The young investment enthusiast bought the pound sterling against US dollars and was proved right when the referendum results were announced. “At that stage, I had an incredible lead. I thought that if someone beat me they would have to be trading something similar. So, I used the fact that I had more money and took an exposure bigger than everyone else. I was buying pounds for a couple of days,” he says. Jacobsohn says he had been tempted by Alibaba, the biggest initial public offering ever on Wall Street. However, he couldn’t get the same gearing as he could with currencies and so he decided against it because he wanted to win. The competition winner says he would not invest the way he did when he competed in the Standard Bank Webtrader challenge.

“The gearing that I took I would never do with my own money. I took a gamble with gearing, because my idea was to win the competition.” Jacobsohn has never invested in the real markets, however he says that his win has “sparked my interest”. First, though, he says he will complete his articles because getting his career on track is his priority. “I want to build a stable career for myself,” he says. Jacobsohn, known to other traders as UrbanLegend, is the first person to be awarded the Webtrader trophy. Fatima Essop Mohamed of Standard Bank Webtrader says: “As is the nature of trading, those participants who stayed abreast of current affairs and traded in or out accordingly (intra-day) reaped the benefits and maintained positive growth.” She says only 5% of participants made a profit of 50% and more, while 20% lost more than 20% of their virtual funds. “As this was a trading game over a short period, stocks were not a popular choice. Instead, participants opted to trade geared instruments that allowed leverage of the initial US$100 000 in virtual funds,” notes Essop Mohamed.

The most popular instruments traded in the competition, she says, were: FX – EURUSD, GBPUSD and XAUUSD; and CFDs – AAPL:xnas, DAX. I, SP500.I. Currency trading: A primer. Forex or spot FX trading allows for the buying of one currency against the selling of another. Currencies trade in pairs, like the euro-US dollar (EURUSD) or US dollar-Japanese yen (USDJPY), explains Essop Mohamed, pointing out that Standard Bank Webtrader provides access to more than 160 forex crosses. “Trading on margin, as is the case with forex trading, allows investors to buy and sell assets that have a greater value than the capital in their account. It is important to note that margin trading involves a large amount of risk. Since a position held exceeds the actual value of the account, a trader could incur substantial losses if the market moves against his or her position,” she says. Investing vs trading. “Investing and trading are opposing methods both attempting to profit in financial markets. The aim of investing is to gradually amass wealth over an extended period of time usually through the buying and holding of shares,” emphasises Essop Mohamed. Trading involves more frequent buying and selling of favourites like CFDs and forex with the goal of generating returns that outperform buy-and-hold investment strategies, she points out. Standard Bank forex app cuts the mustard. OVERVIEW OF Standard Bank Group Ltd. - JSE:SBK. If ever South Africans were going to wise up about foreign exchange (forex) opportunities, it is probably this week. The rand – already one of the most volatile and liquid currencies in the world – has provided a real roller-coaster ride moving around sharply as the prospect of a recall of the finance minister raises its head. For this reason, I have been particularly interested in identifying platforms that allow me to swiftly move around forex from my main banking partner: Standard Bank. Over the past couple of weeks, I have heard the Standard Bank advert on radio for its “Shyft” app, which is supposed to make it easy to transact forex in dollars, euros, pounds and Aussie dollars.

My primary reason for taking an interest in the app was trying to fund my Saxo Bank stockbroking account without having to wait in the queue at the bank to fill in forms. My main problem with the advert: They neglect to tell you that it is “Shyft” (with a “y”) and it’s not easy to find on the app stores if you just type in “Standard Bank”. However, after standing in a non-moving, Standard Bank (Rosebank branch) queue for an extended period of time, I got motivated to actually find this app. After a bit of searching, I located it and installed it on my iPhone. Sign up is easy and the turnaround time on the verification e-mail and the interface is nice and easy to operate. In terms of functionality, you are ultimately able to to make online purchases using their virtual cards, or pay an international beneficiary (like my Saxo account) and I believe that you can even use the Shyft physical card to swipe or withdraw from an ATM when travelling overseas. The one aspect which momentarily stumped me, was the funding of my Shyft wallet. I had assumed that it would sync with my bank accounts and allow me to simply transfer funds that way. Ultimately, I realised you had to set it up as a beneficiary and then make an internet transfer into your wallet. The transfer was near instantaneous and more importantly, payment into the beneficiary account (Saxo) was funded on the same day. In comparison, when I had funded the Saxo account using the paper method on a Friday, it had taken until Tuesday the following week, for funds to reflect. The interface is easy to understand and you get a live rate for your transactions in the app. In terms of costs, you are charged a flat transaction fee of US$14, GBP10, EUR12 and AUD18 so it’s probably not ideal for a lot of smaller transactions, but for a retail investor keen to move some money around, it’s not the worst rate going. For South Africans, the reality is that currency volatility is a major issue for those whose money is tied up in rands. The ability to move money around, in line with foreign exchange regulations, is going to be a major issue in the coming months and Standard Bank have done nicely to provide a tool that is easy-to-use and fund.



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