The problem with banks and wire transfers

[truetype]

I guess having thousands of posts makes someone right about everything!

 

[luisHK]

I guess having thousands of posts makes someone right about everything!

Make it tens of thousands, including the ones with his former aliases.
This is gonna be another long thread, bon courage traders !

 

[Zzzz1]

4 pages? Long already? LuisHK, how is your girls hunt going these days? Anything funny to report?

Make it tens of thousands, including the ones with his former aliases.
This is gonna be another long thread, bon courage traders !

 

[W.J. Feathermaker III]

But you certainly did want to brag that you could "off the top of my head rattle down a list of a dozen issues with FCMs where clients lost money, sometimes huge chunks." Understandably, since you're wrong, you're much less eager to follow up.

The troll accuses everyone else of "making up lies", but it doesn't apply to him I suppose.

 

[murray t turtle]

My local bank sends wires within minutes.

%%
Mine do 2, but that is in US D+ in the morning.

 

[oversea]

A 'dozen' FCMs whose clients lost 'huge chunks' of money? I'd love to see the 'list.'

MF Global - who needs a dozen??

 

[Bellwether1]

I keep a good portion of my futures trading account in banks earning ~ 1% interest (it comes to a good chunk of cash for larger accounts at the end of the year). And I transfer funds into the FCM as needed for routine drawdowns so that I do not have to decrease leverage.

The banks I've encountered only process wire transfers once a day, near the end of the day, at about 4 p.m. ET. And the cut-off time to request the wire is about 3 p.m. So, if you want to wait for nearing the market's RTH close to decide whether or not to transfer additional funds to your FCM, and you initiate the wire at ~ 3:30 p.m. on Monday, your funds won't be sent until 4 p.m. on Tuesday, and maybe won't be available to be utilized at your FCM until Wednesday. And that's too long.

There's no bank I've seen that processes wires more than once a day (and near the end of the day).

Is there any bank that processes outgoing wires at least twice a day, say at 10 a.m. and 4 p.m.? Is there any method of moving money faster?

Bank of America

 

[Sig]

MF Global - who needs a dozen??

'Former securities and commodities customers of MF Global have recovered $8.1 billion — virtually all of their assets — with Tuesday's conclusion of the bankruptcy court liquidation of the failed brokerage formerly headed by Jon Corzine."

www.google.com/amp/amp.usatoday.com/story/80072110/?client=ms-android-google

 

[oversea]

'Former securities and commodities customers of MF Global have recovered $8.1 billion — virtually all of their assets — with Tuesday's conclusion of the bankruptcy court liquidation of the failed brokerage formerly headed by Jon Corzine."

www.google.com/amp/amp.usatoday.com/story/80072110/?client=ms-android-google

I had a feeling someone would offer this as a response...I still almost can't believe it, though!

You don't mind that your broker loses your 100k (of 500k+) ...as long as you eventually get it back??? After a week?? After a month?? After a year??

Forget about the op's nerves being shot to hell from such a situation had it happened to him...for a trader making their living from this -- he would have just lost his livlihood.

So, I'm not contending that one should needs to be weary about depositing funds with an FCM...but MF Global, in and of itself, should have stopped anyone from being so dismissive of the OP (and portraying the op as 'bloviating about how risky FCMs are..').

 

[oversea]

HSBC does too, internationally. They charge around 20-30 usd per wire. Which is fair. Some people on this board have an MBA and moan that such fee is outrageous, yet ignore the fact that it costs millions to maintain and upgrade payment networks. It's simple economics and I can assure that banks don't get rich by wire charges. I have studied and read bank balance sheet as part of earning my living and in fact most services surrounding cash transfers are a net negative to the banks. They lose money on offering this service.

Most large banks wire funds out immediately if an online request is submitted. Even in the US.

It'd also be worth checking out Chase Private Client - they actually waive the fees on not just incoming wires but outgoing as well (even int'l). And with them too, you can expect that it will go out in about an hour - there's a 45-min security hold time, but it usually goes out shortly thereafter.

I'm also pretty sure (it's been some time since I've been with them)...that as long as you're before the 4pm cutoff - it will still go out that day, which sounds like it may be very relevant for your needs.