funding a us trading account from the uk

[chris1976]

Hi

just wondering what others do to fund a newly opened us account for the first time?

hsbc is offering me 1.47 odd to the pound while money transfer companys are offering around 1.52.

however options house state the wire has to be from an account in my name and not a 3rd party account,iv just come off the phone and the guy suggested opening a us bank account to transfer the funds through, a quick google search implies thats a no goer 🙄

I'm just wondering if im going to suffer crap exchange rates moving money each time and if its worth the hassle and wether there are any uk companys i can trade us options from?

 

[options-george]

Hi

just wondering what others do to fund a newly opened us account for the first time?

hsbc is offering me 1.47 odd to the pound while money transfer companys are offering around 1.52.

however options house state the wire has to be from an account in my name and not a 3rd party account,iv just come off the phone and the guy suggested opening a us bank account to transfer the funds through, a quick google search implies thats a no goer 🙄

I'm just wondering if im going to suffer crap exchange rates moving money each time and if its worth the hassle and wether there are any uk companys i can trade us options from?

Do the following:
1. Open a US$ account with your UK bank.
2. Use a money broker such as FTT or Transferwise to transfer money out of your GBP account into your USD account
3. Arrange a wire transfer from your US$ account (which is of course in your name) at UK bank to your US options broker.

Result: The only rate you have used is the 1.52 from your broker.

When transferring funds back, have them wired directly into your US$ account.
Note you will have to pay an annual fee for having the US$ account - at Lloyds TSB I have been paying £60/year for the privilege.

 

[chris1976]

ah cheers george that sounds like a plan,so im banking with hsbc does this sound like what im looking for?

http://www.hsbc.co.uk/1/2/current-a...t_InternationalPersonalAccount_HowToApply_Btn

 

[options-george]

ah cheers george that sounds like a plan,so im banking with hsbc does this sound like what im looking for?

http://www.hsbc.co.uk/1/2/current-a...t_InternationalPersonalAccount_HowToApply_Btn

No problem - glad you think it might work for you.

I am not sure whether the account you mentioned is the one you need. It needs to be an account that is denominated in US dollars. Although I am sure if you talk with your bank they will point you in the right direction. Possibly try to avoid explaining in detail what you want to use it for.

It seems another option is for HSBC to set up a US account for you, in the US. See the link below. Then you could transfer the money from your UK account to the US account via a FX broker (and get the 1.52 rate) and then wire from your US account to the options broker.

http://www.hsbc.co.uk/1/2/overseas-account-opening

Good luck.

 

[chris1976]

hi george iv spoken with them today and it seems the first link will work although the currency account is new and i wont be able to open one till the 30th nov,takes around 5 days to open,after which it will be £5/month,so im happy with that 🙂

 

[options-george]

hi george iv spoken with them today and it seems the first link will work although the currency account is new and i wont be able to open one till the 30th nov,takes around 5 days to open,after which it will be £5/month,so im happy with that 🙂

Glad to hear that!

One thing - possibly do follow up on the suggestion made on the other thread, where mike8man said it might be possible to wire funds to a UK representative bank of OptionsXpress. That might be a good option too.

 

[chris1976]

yeah,sorry my bad,its actually options house,lol

 

[BWills]

Interactive brokers I know can be funded in pound and base account in pounds. Works same with Euro.