How the big banks are banking off FX stupidity

By globalintelhub

We all know that the majority of people don’t know FX (Foreign Exchange) so this topic should come as no surprise. (For those who haven’t already, checkout Splitting Pennies for a quick guide on this topic) However, it’s important for traders and investors to understand how the US banks are ripping off their clients, and the only reason they do it is because clients allow them, because they don’t understand how they’re being scammed. What we are talking about is the retail deliverable foreign exchange market. Deliverable currencies is FX that is ‘deliverable’ to a foreign recipient, for example if you want to pay up front for a hotel in France you’ve booked in advance for your summer vacation. It’s not only retail but for the example here it is – someone walking into a branch and asking to make a foreign payment. We’ll use Bank of America as the example, let’s look at their FX rates from their website, available here: https://www.bankofamerica.com/foreign-exchange/exchange-rates.go

So here’s the first line of defense to this scam, which it can be fairly called (we will explain). Only one side of the spread is displayed – this …read more

Source:: ZeroHedge