Hi,
I get part of my income in USD.
I'd like to start some FX trading.
I am not really clear on how commissions/fees work.
For example, on Questrade the "pips" are 2.0 for USD/CAD.
http://questrade.com/pricing/commissions/fx_cfds
How does that work out?
Say 10,000US -> CAD. Is that 10,000 * 1.11 * 0.002 = commission? (1.11 being the current exchange rate) In this case the commission would be 22.20$. Is that right? Compared to what one would get simply converting it at the bank (where they take at least 1-2% in spread over the official rate) this is nothing short of awesome assuming I understand this correctly.
Note : I am not talking about being an active FX trader, although I may play when there are large swings.
Most of the time I would wire in my USD earnings say quarterly, convert them and transfer out. A bit more of a hassle but may be able to save quite a bit annually.
Thanks for any input.
I get part of my income in USD.
I'd like to start some FX trading.
I am not really clear on how commissions/fees work.
For example, on Questrade the "pips" are 2.0 for USD/CAD.
http://questrade.com/pricing/commissions/fx_cfds
How does that work out?
Say 10,000US -> CAD. Is that 10,000 * 1.11 * 0.002 = commission? (1.11 being the current exchange rate) In this case the commission would be 22.20$. Is that right? Compared to what one would get simply converting it at the bank (where they take at least 1-2% in spread over the official rate) this is nothing short of awesome assuming I understand this correctly.
Note : I am not talking about being an active FX trader, although I may play when there are large swings.
Most of the time I would wire in my USD earnings say quarterly, convert them and transfer out. A bit more of a hassle but may be able to save quite a bit annually.
Thanks for any input.