Fortrend’s foreign exchange account lets you deposit almost any currency at any time. Included in the 40 currencies you can deposit are AUD, USD, CAD, GBP, NZD, YEN, or EURO, just ask your advisor for deposit instructions for each currency.
Once you have currency in your account, you can buy and sell foreign currencies with a simple telephone call to your advisor or our night desk operator. Fortrend is equipped to deal in more than 40 different currencies at any time, with no commissions charged.
Fortrend can also help you in Forward Rate contracts. You can use your multi-currency account to book Forward Rate contracts, which can be used to hedge exposures to reduce risk or you can speculate and increase your risk.
For example, if you have a global growth portfolio with Fortrend, you can hedge out some of your USD exposure using Forward Rate contracts. It is really simple: your advisor will help you calculate the USD exposure in your portfolio and then Fortrend can sell USD, buying AUD for delivery in say, 12 months. This allows you to maintain your sector diversification while reducing your currency diversification.
Speculators can place bets on the direction of currencies using Fortrend’s Forward Rate services. For example, if you believe the AUD will fall, you can sell AUD and buy USD for delivery in 12 months. The only leverage we require is an initial margin deposit of 10% and you can unwind your 12 month forward rate at any time, with a simple offsetting transaction.
Best of all, there are no commissions for dealing in foreign exchange contracts or for booking Forward Rate contracts!
For further information about foreign exchange contracts and Forward Rate contracts, please contact your advisor at Fortrend.
