Wazua
»
Investor
»
Offshore
»
4-12% per transaction?
Rank: New-farer Joined: 7/26/2010 Posts: 25 Location: Nairobi
|
Gordon Gekko wrote:Trx costs irrelevant/negligible? The transaction costs in the local setting are negligible but I'm yet to try the two country scenario. Join the discussion on the first freelance community network in Kenya. If you'd like your blog included on the site, kindly email it to me at info@penwiseassociates.com or simply join the discussion in the forum section
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
Extrapreneur wrote:PS: I did make money and continue to do so. I regret posting it here though; the pessimism is legendary. All the best to you all who are willing to test the limits and boundaries of what is already known. Why then did you post it as a question? Without revealing the amounts involved, could you give us the details of the transactions - dates, exchange rates, commissions etc? @Wazua; what happened to the initial post on this thread? It now starts mid-way and so it doesn't make much sense any more! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Administration Joined: 11/19/2009 Posts: 679
|
Dear @Extrapreneur
Much as we agree with your assertion some of the feedback in response to your thread was counter productive, we've restored posts as users had taken time to read, analyse, and respond.
Kindly allow us to welcome you to Wazua, as we urge you not to be disheartened by 1 or 2 mindless responses. Judging by your initial posts, our community will benefit from your presence.
Thank you for joining the community.
|
|
|
Rank: Veteran Joined: 5/23/2010 Posts: 868 Location: La Islas Galápagos
|
@stocks are a sum game (sum > 0), actually the sum is the total market return (including dividends) FX sounds much like a zero sum (every coin made by one person has been lost by another). Right now you are convinced you will continue making money while someone else (e.g. the banks) will continue losing the money . . . In finance, it's called FX trading, but in English its called gambling A bad day fishing is better than a good day at work
|
|
|
Rank: Member Joined: 5/3/2010 Posts: 145 Location: East Africa
|
@ Extra ignore the negative posts. Enlighten the rest of us. I tend to think that the bank charges for the transfers wud erode any gains made in the conversions. Don't the banks charge?
|
|
|
Rank: New-farer Joined: 7/26/2010 Posts: 25 Location: Nairobi
|
Stealth wrote:@ Extra ignore the negative posts. Enlighten the rest of us. I tend to think that the bank charges for the transfers wud erode any gains made in the conversions. Don't the banks charge? Thanks Stealth. Well, there are bank charges, that is true, but a wire transfer is about KES450 or something close to that. In addition, we are talking about an average of 4% profit. If you worked with say a quarter of a million, that would be 10,000 per round trade. If you made about two trades in a week, that would be 80,000 per month. One other thing, the premise behind this theory is simply that a dollar is cheaper in Kenya than it is in Uganda, or any other country with a weaker economy than Kenya's, for that matter. That is why using indicative rates from Uganda against those in Kenya does not work. It is similar to taking all rates from say, XE.com, where this theory accrues a net difference of close to zero if not a negative value. Join the discussion on the first freelance community network in Kenya. If you'd like your blog included on the site, kindly email it to me at info@penwiseassociates.com or simply join the discussion in the forum section
|
|
|
Rank: Member Joined: 5/3/2010 Posts: 145 Location: East Africa
|
Extrapreneur wrote:Thanks Stealth. Well, there are bank charges, that is true, but a wire transfer is about KES450 or something close to that. In addition, we are talking about an average of 4% profit. If you worked with say a quarter of a million, that would be 10,000 per round trade. If you made about two trades in a week, that would be 80,000 per month. One other thing, the premise behind this theory is simply that a dollar is cheaper in Kenya than it is in Uganda, or any other country with a weaker economy than Kenya's, for that matter. That is why using indicative rates from Uganda against those in Kenya does not work. It is similar to taking all rates from say, XE.com, where this theory accrues a net difference of close to zero if not a negative value. Does this mean that one cud get better rates from independent bureax, then deposit the money in an appropriate bank account and effect the necessary transfers?
|
|
|
Rank: Member Joined: 5/3/2010 Posts: 145 Location: East Africa
|
Does it mean that one cud get
better rates from independent
bureax, then deposit the money in
an appropriate bank account and
effect the necessary transfers?
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
|
@extrapreneur - I am skeptical this would work on a long-term basis... This might have been a one-off due to various movements in currency. 1) The spreads that every bank makes on $-KES ; UGX-KES ; $-UGX [Vary but can be 1%-10%] 2) Transaction costs [450/- is very good. Which bank? I paid KES 2,500 to wire funds to Uganda] The banks with branches in Uganda might be the best to use DTBK, UBA, Equity, KCB... I am not sure about the rest... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
We seem to have ignored the negotiation bit. May be if you are dealing with large volumes of cash it becomes easier for the 'theory' to be practical. The opposite of courage is not cowardice, it's conformity.
|
|
|
Wazua
»
Investor
»
Offshore
»
4-12% per transaction?
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|