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Foreign exchange

About Foreign Exchange

A Foreign Exchange (FX) transaction occurs each time your international trade is executed. The FX transaction services relating to your nabtrade international trades are provided by NAB.

Please refer to the Product Disclosure Statement (PDF 692KB) for more information.

How does it work?

When you place an order for international securities you will be quoted an estimated foreign exchange rate which includes fees, charges, margins and a buffer to protect NAB against potential fluctuations in exchange rates (between the time you place your order and the time your confirmation note is generated). 

Once your order executes, NAB books a foreign exchange transaction for you to match the settlement period of the trade.

This allows you to lock in the exchange rate at which you will exchange Australian dollars into the relevant foreign currency, or vice versa, on the day that your international securities transaction settles. This means you will not be exposed to exchange rate movements between the time your trade is booked and when your trade settles. 

The exchange rate will be dependent on the Foreign Exchange market at the time the FX transaction executes and includes NAB’s fees, charges and margins but not the buffer mentioned above.

 

FX information on your account

The exchange rate applicable to your trade can be found under Trading > Confirmations once you've logged into the platform.

Plus, once your sell trade is booked and the corresponding FX transaction is executed, a confirmation note is generated and your sale trade proceeds are available to fund buy orders - as long as the settlement date of your sell is on or before the settlement date of the buy.