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forex question

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Not applicable
Can anyone advise what is the cheapest way of bringing dollars back into the country? There must surely be a cheaper way than accepting the exchange rate and commissions offered by the local banks?
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14 REPLIES 14
Not applicable
Ask the nigerians - he ehe he!
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Not applicable
I am nigerian - ehe ehe ehe
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Rams
Super Contributor
condoms and a diet rich in fibre?
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john_1
Super Contributor
OK.. so there is a way... open an IG markets account into the UK.. place the Dollars into this account. then open a DWT account and place a rand amount in to the DWT account.. this is your margin... then wait for a nice trending day to develop of the ALSI..then simply short the trend in the IG account and long the trend in the DWT account with the same number of contract and watch the money flow..some degree of experience is required.. happy to help if nessasary. total cost of transaction should be about R320 per contract.. and if you delay the close of the deal in SA slightly the market should be able to fund the cost with a 30 point profit...there is another way if you already have an IG account so if you want some more info let me know
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Not applicable
clever, that could actually work! I will mull over the nuances and get back to you if I have questions
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Not applicable
Nah, won't work - I will get taxed on the profits locally.
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Rams
Super Contributor
I still think you will be right up going( or coming) with the condom trick.....eh eh eh
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john_1
Super Contributor
Skaap no tax--- as you have lost and exact equivilent of what you gained.. after all traders lose money remember
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SimonPB
Valued Contributor
SARS will spot this a mile away ..
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Not applicable
Ja, but Simon, I am not trying to smuggle the money in, I am just trying to avoid bank charges - which are exhorbitant - I lose up to R2k on a simple $7k transfer, because of really poor exchange rates on offer at the banks. So I don't have a problem paying tax on the 7k, and John's observation might actually work?
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john_1
Super Contributor
Sars would spot it if you did it all the time.. but if you trade with your IG account sometimes and trade with your dwt accout on others and when you actually run the Exchange trade.. you make sure you profit a little. buy exiting the losing trade earlier than the winning trade.. and since SARS is not looking at tading statments on a daily time frame.. they will never pick it up.. of course... if this is a once off there is another way
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john_1
Super Contributor
On IG..IF you HAVE A TRADING HISTORY... then all you do is exchange the dollars into rands with IG..they do it at 2 pips more than the midpoint..as they are essentially a forex trading platform... then you trade in rands from london on the alsi... ( so that its not like the very next day... then you simply say you are withdrawing funds and you send over 1/3 of the cash every month..while still trading in the account.. This part is NB...they make the tranfer in rands and you pay no exchange..and if you use iG they dont charge you to send the cash.. so in essence you can bring over 10k and it will cost you about R50 ..this I have done many many times.. as I used to do the majority of my trading through IG so withdrew money on a monthly basis
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john_1
Super Contributor
Ironically.. I am busy doing work for Philip Morris and as such am been paid in dollars..but have to do it through my CC.- so I have to bring over a chunk of dollars and although I know how to do this. I have to pay the fu%%ing banks the exchange...
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kwagga
Super Contributor
my wife is going to the US in july. she will need some dollar. her brother has been living in the US for sometime. a simple transaction into your local account and his foreign account can be arranged. won't be taking all $7 k off your hands though. i need to chat to her first and see what she will need, and if she's open to the idea. for obvious reasons we don't want to be stuck with dollar when she comes back. only one road for the dollar, and that is downhill.
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