Episode #125 of the Stack Overflow podcast is here. We talk Tilde Club and mechanical keyboards. Listen now
114

They call you, instead of the other way around. They promise more than 10% a year return*. They ask you for rapidly increasing sums of money. Multiple unrelated domains use their exact website. They ask for more money in the "trial" period during which you can't withdraw money. You find ZERO positive references for the company. They provided an erroneous ...


100

It is a scam. There are quite a few websites with different names but same layouts. https://www.master4x.com/index.php. https://www.8infx.com/index.php. https://topicmarkets.com/index.php Generally difficult to get money back. You can try legal recourse Found out one more website. https://xtradefx.com/# Related question I made an investment with a ...


96

This is part of highly sophisticated network of scammers. This scam is spread across hundred of websites (some list can be found here and here), most likely using "fake" or stolen details and they're very good at covering their tracks. Scam broker checklist They called you out-of-blue offering the great earnings. Check. They pressure you to keep investing ...


96

When dealing with currency exchanges, it's important to remember that only the local currency is "money", all the other currencies are just "things". This is the reason behind the "buying"/"selling" terminology you often see. When you change foreign currency into local currency - in the view of the currency exchange - they are buying your strange pieces of ...


80

assuming the currency value with respect to USD stays stable in that year. This is where your analysis breaks down. The fact that the foreign bond pays a higher interest rate indicates that the currency will weaken relative to the dollar over the year, otherwise many investors would buy these bonds as an arbitrage opportunity, driving the price up (and ...


79

Mainly because they can. Yes, there is a cost for banks to execute such transactions, and yes, there is a cost to cover the implied risks, but it is far from 3 or 4%. There are banks that charge a flat rate of less than 30$ (and no percentage), so for larger amounts, it is worth shopping around. Note that for smaller amounts, which are the majority of ...


72

You don't need to be an economist to shop something. I just did some quoting of USD to EUR The daily wholesale close: 1.1251 The daily rate from Visa: 1.121988 The quote from my brick and mortar bank: 1.1794 The quote from the Travelex to pick up at my local international airport: 1.2335 For starters, you don't get the wholesale price in a retail setting (...


60

If you do not understand the volatility of the fx market, you need to stop trading it, immediately. There are many reasons that fx is riskier than other types of investing, and you bear those risks whether you understand them or not. Below are a number of reasons why fx trading has high levels of risk: 1) FX trades on the relative exchange rate between ...


47

Many people make money doing this kind of thing. Many more people lose money doing this kind of thing. You're basically making a bet that the market is wrong. What makes you believe that this particular currency will increase in value compared to your home currency? The other problem with this kind of bet is that it's expensive. You will need at least ...


42

All institutions, financial or otherwise, seek to maximize profits. In a free market, each bank would price its services to be competitive with the current state of the market. Since the currency conversion fee is generally a small part of the decision as to which bank to choose, banks can be non-competitive in this area. If this is an important ...


42

The Financial Services (Distance Marketing) Regulations 2004 say in Section 11: Subject to paragraphs (2) and (3), regulation 9 does not confer on a consumer a right to cancel a distance contract which is— (a) a contract for a financial service where the price of that service depends on fluctuations in the financial market outside the supplier’s ...


41

Because it is physical money. They need to handle it. And they may simply not be able to as easily and as efficiently offload 5 USD bills compared to 100 USD bills. Result is a different pricing structure.


38

It isn't a simple reversal, because money actually changed hands when the transfer was made. When the transfer was made 50,000 Euros was credited to a UK bank, and some number of kronor was debited to your Swedish bank. When the transaction was reversed 50,000 Euros were transferred back to the Swedish bank. Those Euros are now worth fewer kronor, so your ...


38

Financial institutions are subject to additional reporting requirements where they deal with U.S. persons (→ FATCA). Many institutions therefore decline potential customers that are U.S. persons, either because the effort is uneconomical or because they are not allowed by local laws to report that data to the U.S. U.S. persons are not only U.S. citizens, ...


37

My question is, how is it possible? Who is bearing that AED 93/- additional amount I have received which obviously is not the hotel. Short answer, it is the Fx market. When you charged GBP 2760, via exchange the Visa/MasterCard network along with a spread from Banks, purchased this in Fx Market. The person/institution who sold them GBP 2760 asked for AED ...


32

What you are describing is a speculation. Particularly, a long-term speculation. You propose to place a bet that: Your particular view of the fundamentals is correct (which it might be) Whatever shorter-term dislocations that cause major market players to price the ruble differently from how they otherwise would are bound to change within your investment ...


32

Because currency risk is not the only risk in this scenario. The risk of the developing country (the state) not servicing their obligations are the bigger risk, hence the very high interest rates. Think of it as investing in High Yield bonds (junk bonds) - interest is high because risk is high. Rating agencies rate countries (like they do corporations) for ...


31

Why do these fees exist? From a Banks point of view, they are operating in Currency A; Currency B is a commodity [similar to Oil, Grains, Goods, etc]. So they will only buy if they can sell it at a margin. Currency Conversion have inherent risks, on small amount, the Bank generally does not hedge these risks as it is expensive; but balances the position ...


31

Currencies are indeed "actually" traded basically on what is called the "Interbank Market" Here's a quick read on that: https://en.wikipedia.org/wiki/Foreign_exchange_market Let us compare and contrast! Stocks (like AAPL) are (as a rule) traded on the two or three huge "stock exchanges" such as "Nasdaq", which everyone has heard of. Commodities like gold ...


28

You got a call from someone, out of the blue, asking you for money. How is this not a scam? Cold calling is a good indicator of a scam. You also seem to be in denial of that fact that you’ve been scammed. If you want to be 100% sure it is a scam, simply ask them for your money back. Any legitimate broker will return your money.


26

The air.money website is actually a service of city forex which is registered with FCA/HMR/ICO: FCA AUTHORISED PAYMENTS INSTITUTION# 524412 HMRC MSB Registration #12191402 ICO Registration #Z8811634 Therefore, you should be okay transacting with air.money


23

Well, your exchange rate changes are deeply unrealistic. But aside from that, there's another problem. You are assuming in step 3 that the exchange rate will return to the same position as it was in step 1. Sure, maybe that will happen. But if instead, it changed to an exchange rate of 30, you now have $75 USD and 1500 JPY worth another $50 USD, for a ...


23

Is this method legal? Are there people who use this method to make money? This depends on the intent. As per Foreign Exchange Management Act, an individual cannot trade in FX. There are specific licenses required and governed by Reserve Bank of India. However one can hold small amount of Foreign currency in cash; and can make the prescribed profit like you ...


23

I don't know about other markets, but for travellers based in the UK going to popular destinations, the most competitive card providers give slightly better value than the most competitive cash providers. Both cash and card processors can charge you money for the service of converting currency in three ways: A fixed fee per transaction. A percentage ...


19

So let's start from the beginning: Here's what we know: Currency can only be valued when compared to another currency. So each time you enter a position on a currency it is always relative to another currency. So the currency pair can actually be thought of as one unit. The first currency of a currency pair is called the "base currency", and the second ...


19

The other answers are correct, but I would like to explain the problem from a different perspective: When some scheme seems to offer you free money for nothing, then you should always ask yourself why someone offers you that scheme. Why would a foreign government offer you to give them a loan with a high interest rate when they could just as well give you a ...


18

AirMoney seems to deliver money either through the Doddle service, or the Royal Mail. You are given a tracking number for either, so the transfer of money is nothing to worry about. You can contact Doddle if you find that they never send a package or they give you a false tracking number. In regards to claiming compensation if you do get shafted, AirMoney ...


17

Currency Trading For Dummies, no offense. The "For Dummies" series is well known for its expertise in every field one can imagine. That said, what prompts you to want to get into this? The average person is very likely to lose money as the long time experts walk away winners. Do you have an urge to trade commodity futures? I sure don't. While I offer the ...


16

It will cost the same no matter what currency you use, unless you have access to a deal with a currency exchange that gives you an especially favourable conversion rate for a particular currency. If the current exchange rates are US$1.70 to the £, CA$1.80 to the £ and HK$12.50 to the £, then £1, US$1.70, CA$1.80 and HK$12.50 are just four different ways of ...


15

Currency trading is basically a zero-sum game. You're betting against the experts that play the game. Why do you think you're better than they are? Especially with the overhead costs you must deal with, being average still means you lose.


Only top voted, non community-wiki answers of a minimum length are eligible