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Member
Hi X
Thanx for response. I understand how settlement works, but in this case my ensuing transaction was not anything to do with ASB. What annoyed me was that this should never happen. They have since phoned me to apologise and offered me a $30 voucher from my next trade(in other words a free trade up to the $30 parameter).
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Member
Anyone else having issues today? My laptop and desktop are having seizures just trying to load the depth and announcements
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Member
Originally Posted by Okebw
Anyone else having issues today? My laptop and desktop are having seizures just trying to load the depth and announcements
When I first login it is having trouble loading correctly. Am forced to refresh to actually get anywhere.
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Any reason why you converting back to NZD$ all the time?
Open a FX AUD account with them and only transfer back what you need if any
See this thread http://www.sharetrader.co.nz/showthr...ASB-securities
Last edited by Jay; 26-07-2014 at 05:04 PM.
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Junior Member
[QUOTE=Jay;494063]Any reason why you converting back to NZD$ all the time?
Open a FX AUD account with them and only transfer back what you need if any
Simply because I trade NZX and ASX so its handy to have one central account having two accouts would be neccessary if ASB were honest with their exchange rates.
I have traded Forex, and know have narrow the real pip margins are, less than 5 mostly, not hundreds like ASB are adding to each trade.
That isn't Margin, and they are not being open about their ASX dealing.
Example, say the rate is 0.9 AUD per 1 NZD when buying on ASX, then you'd expect the reverse rate of 1.1 NZD per 1 AUD if you sold on the same day at the same rate, give or take a FEW pips. Surely!
I got 0.93 instead of 1.07 on a recent sale, so my $700 profit ended up just over $300. ASB applies Sub 1.0 rates on buys and sells, spreads as wide as 3000+ pips on dealing with them.
Am I missing something, or is it really that much of a con?
I shall be having a long talk with them tomorrow, and would like them to explain their spreads, margins to me..
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Member
They don't list it in the manner you'd expect. I think you'll find that 1 : 0.93 was the NZ:AUD rate at the time.
Details are as follows:
Consideration:
ASB Brokerage: AUD 15.18
CommSec Brokerage: AUD 14.82
Total Credit AUD 7,635.00
NZD 8242.47
Exchange Rate: 0.9263
Settlement Credit
Settlement Instruction: Cash Management Account
Settlement Date: 01/08/2014
So going buy the exchange rate at the time I should receive $1.10 NZD per AUD but received $1.075 after ASB's commision.
They are exorbitant but no where near your math is making them out to be
Last edited by Okebw; 29-07-2014 at 05:22 PM.
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Junior Member
Originally Posted by Okebw
They don't list it in the manner you'd expect. I think you'll find that 1 : 0.93 was the NZ:AUD rate at the time.
So going buy the exchange rate at the time I should receive $1.10 NZD per AUD but received $1.075 after ASB's commision.
They are exorbitant but no where near your math is making them out to be
"Thank you for your email.
When you trade on ASX market settling to your NZX Cash management account, at the time the order gets traded, the settlement amount is calculated with the FX rate at that time. Unfortunately, we are unable to provide you details on how our rates are calculated and what margins are charged on this.
There is an option to open a foreign currency account (FCA) available in our share trading account opening application. Should you wish to open a FCA, please call us on our broker line to enable us to identify you and get it set up for you. There are no accounts fees as such on the Foreign Currency Account except for International Money Transfer fee, Foreign Draft & cash withdrawal at a branch.
The procedure for transferring funds with a currency (FCA AUD to NZD) involved is to call us to enable us to identify you and as per your request, we will let you know what the indicative FX rate is (this changes every 30 seconds). If you are happy with the rate we can then proceed with the transfer. There are cut off times for FX currencies but we can lock the rate for the next business day. Alternatively, you can do an online FX transfer through internet banking.
If the value of your transaction is over NZD 100k, please call us to do the FX transfer. We have to call our Dealers to provide us a rate and we are able to shave the margin for you.
Please also note under our ASB Securities Terms & Conditions, section 12.3 its states that “ ASB Securities may at its absolute discretion charge you a commission or margin on all foreign exchange dealings” Also when you placing the order there is print stating “You should be aware that investment in securities involves risk including (but not limited to) currency and market fluctuation. ASB Securities is not liable for any loss or expense incurred as a result of any investment decision made.”
Should you have any further queries, please do not hesitate to contact us. "
So there you have it. Unable or unwilling to disclose rates or how they calculate. So when you pres the buy or Sel Buttons, you are at their mercy.
ANZ however clearly states how they do it they take an average for the buy/sell rate , then multiply by 0.89 to give a margin figure
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[QUOTE=mbrook;494638]
Originally Posted by Jay
Simply because I trade NZX and ASX so its handy to have one central account having two accouts would be neccessary if ASB were honest with their exchange rates.
I have traded Forex, and know have narrow the real pip margins are, less than 5 mostly, not hundreds like ASB are adding to each trade.
That isn't Margin, and they are not being open about their ASX dealing.
Example, say the rate is 0.9 AUD per 1 NZD when buying on ASX, then you'd expect the reverse rate of 1.1 NZD per 1 AUD if you sold on the same day at the same rate, give or take a FEW pips. Surely!
I got 0.93 instead of 1.07 on a recent sale, so my $700 profit ended up just over $300. ASB applies Sub 1.0 rates on buys and sells, spreads as wide as 3000+ pips on dealing with them.
Am I missing something, or is it really that much of a con?
I shall be having a long talk with them tomorrow, and would like them to explain their spreads, margins to me..
1) If you've traded Forex were you trading actual spot delivery, or simply futures/contracts for difference? If the latter then the spread is significantly lower.
2) You've quoted a rate of the day / time (not sure of your source) however that's probably just an estimate of the mid-rate so you are missing the bid-ask spread. In your example you are crossing the spread twice by going from NZD to AUD and back. Your example also doesn't take into account intra-day movements.
3) Depending on the amount of cash in your account they will be applying a 'shading' to your spread so you shouldn't ever expect Forex futures like spreads..
Last edited by Whipmoney; 30-07-2014 at 04:40 PM.
Truth is like poetry. And most people f*cking hate poetry.
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Don't know how that happened whip, but it looks like I said the above when I did not
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