Currency exchange at a bank?
I always assumed that you needed to use an online dealer/broker if you wanted to make money through Forex (foreign exchange market).
But then I came across this webpage:
http://www.ehow.com/how_4928810_money-foreign-exchange.html
That basically says to exchange currency at a bank yourself, in person. I just want to know why this wouldn’t work. Obviously you wouldn’t have the benefit of leverage, but this would also minimize the risk.
For one thing, there’s no dealer to automatically cancel your existing trade in case you start to lose more money than you can fund, so you could wait for the currency to rise in value again before trading.
Also, you wouldn’t have to lose out on the spread that the dealer makes a profit from.
But what about the fees that banks charge for currency exchange? And is a bank going to be the most economically-efficient place that you could go in order to exchange currency?
Could you actually start to make significant profits through forex by exchanging money yourself through a bank or somewhere else where you could exchange one country’s currency for another’s … instead of going through an online broker?