FreeCashFlow
Recruit
- Messages
- 3
I'm seriously considering an EverBank foreign currency CD ( http://www.everbank.com/001WorldCurrency.aspx?LinkID=Navigation ). I can earn 2.52% APY on a 3-month Hong Kong dollar CD. The reasons:
1. EverBank foreign currency CDs are protected by FDIC insurance. FOREX brokers have no FDIC or SIPC insurance. (If you know of good FOREX brokers with FDIC/SIPC insurance, please correct me.)
2. EverBank is a reasonably safe bank according to http://www.bankrate.com/brm/safesound/thrftmm.asp?fedid=1000215115 . While Oanda itself seems to be safe, I'm not sure how confident I can be given that customers' money goes into banks (http://fxtrade.oanda.com/whyfxtrade/ #4)
3. Most FOREX trading firms do not disclose the interest rates paid on cash balances in any currency. This leads me to believe that the yields are pathetic rip-offs, as a firm that offers a competitive rate would brag about it while a firm that doesn't would prefer not to volunteer such information. I'm now thinking that I won't be able to find a better interest rate than EverBank does.
4. EverBank seems to be geared towards lazy people like me. FOREX firms seem to be geared for highly leveraged and hyperactive traders.
What do you think?
1. EverBank foreign currency CDs are protected by FDIC insurance. FOREX brokers have no FDIC or SIPC insurance. (If you know of good FOREX brokers with FDIC/SIPC insurance, please correct me.)
2. EverBank is a reasonably safe bank according to http://www.bankrate.com/brm/safesound/thrftmm.asp?fedid=1000215115 . While Oanda itself seems to be safe, I'm not sure how confident I can be given that customers' money goes into banks (http://fxtrade.oanda.com/whyfxtrade/ #4)
3. Most FOREX trading firms do not disclose the interest rates paid on cash balances in any currency. This leads me to believe that the yields are pathetic rip-offs, as a firm that offers a competitive rate would brag about it while a firm that doesn't would prefer not to volunteer such information. I'm now thinking that I won't be able to find a better interest rate than EverBank does.
4. EverBank seems to be geared towards lazy people like me. FOREX firms seem to be geared for highly leveraged and hyperactive traders.
What do you think?