On May 14, 3:41 pm, Douglas Johnson <p...@[EMAIL PROTECTED]
> wrote:
> www.everbank.com
I'm a client, and I'm suspicious about the rates I'm getting on the
currency trades Everbank does when you go into and out of non-US
currency. I don't currently understand a sure way to check whether
the spreads their representative says they are giving are accurate.
The trade happens on the spot market at whatever time of day they
decide to do it. One can look at historical rates on Oanda day by day
(I forget exactly what kind of rate rate (e. g., bid, ask, or a daily
extremum of one of those), but that doesn't tell you what the market
rates were at the time of day when Everbank executed the trade that
determines the rate the customer gets. I have been in three
currencies for about six months and my balance as expressed in USD is
still below what I put in. That is, the interest earned has not yet
made up for the expense of trading.
An alternative to concider is ETFs or ETNs (exchange traded notes)
that track currency exchange rates. Also, there are those that proxy
for gold and for natural gas. I'd argue that natural gas is the real
money. I wouldn't do it for the short term, however, because of
volatility. Maybe for some medium term (equities being worth
considering for long-term investments).
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