I live on the border between two countries with two different currencies and have bank accounts in both countries which are physically right beside each other. I am able to physically withdraw that specific countries currency from either bank account at no charge from the ATM and exchange it by travelling a short distance over the border.
How do I take advantage of this situation to make profit transferring currencies according to market rates?
You probably won't make any money at all for many reasons.
Firstly, you're probably not a good enough trader to be able to consistently make money.
Secondly, the banks will charge you conversion fees that are likely to be disadvantageous to you based upon what the actual exchange rate is.
Finally, the typical percentage of money you can make trading currencies without leverage is quite small. Unless you have the equivalent of millions or tens of millions of U.S. dollars, the money you do make (assuming you make money at all) will not be worth the effort.
But dont you need to have a lot of money to invest to join forex?
>Secondly, the banks will charge you conversion fees that are likely to be disadvantageous
I dont pay any conversion fees because when I take the money from the ATM its automatically converted (account is in currency x, but the money is in currency y when it comes from the ATM, no fees applied due to bank policy). Vise versa, when I deposit the money its the currency of that country so its not converted when deposited.
>Finally, the typical percentage of money you can make trading currencies without leverage is quite small
True, this week the rate went up by 0.02, but if I had 1000 of a certain currency and transferred it at the right time, that would be 20 profit right?
From week to week that adds up, and it would be more lucrative in a single week than investing that 1000 into a savings account at 1.5% interest per year.
Of course if I was paying bank fees or "bureau de change" exchange rates that would be any potential profit gone, but thats not a factor here.