Regular FOREX - USD to AUD - Most cost effective approach?

Discussion in 'Money Management & Banking' started by rizzle, 5th Sep, 2021.

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  1. rizzle

    rizzle Well-Known Member

    18th Jun, 2015
    If one receives regular USD income, what is the most cost effective way to transfer regular tranches back to local AU bank accounts?

    From my reading so far, it seems like I should create an Interactive Brokers trading account, and use the forex spot rates to change currency, and then withdraw to AUD afterwards. Has anyone found a better method?

    In the above example, would one create the IB account while in Australia, or once in the USA? Does it even make a difference?

    I do have a Citibank global currency account, but with all the news on the Citibank banking division in Australia, who knows if that will survive.
    Hockey Monkey likes this.
  2. Hockey Monkey

    Hockey Monkey Well-Known Member

    22nd Oct, 2015
    You may also need a Wise or other bank USD account in the same name as your IBKR account as IBKR don’t like to receive funds from third parties and you have to notify them of incoming amounts before they are send

    so it looks like

    Payer > Wise > IBKR > USD/AUD FX > Your Australian account

    IBKR also no longer support ACH account setup for non US accounts, so you would need to do wire transfer from Wise. That might be a reason for exploring a US IBKR account

    If you do use ACH, make sure it is push not pull otherwise your funds will be locked up for 40 days
    Last edited: 5th Sep, 2021
    rizzle likes this.
  3. Piston_Broke

    Piston_Broke Well-Known Member

    30th Jul, 2015
    Check out Oanda. Simple and easy to use.
    rizzle and Sackie like this.