Best Trade Solution

Hi all,
L/C is available "by negotiation" at sight with bank N. this bank decides to negotiate docs.
Q1 : can the bank N ask for negotiation/payment commission like
"by payment" terms?
Q2: if yes who have to pay that commission?

No questions should rise in the name of commission. Banks through negotiation trade in foreign exchange/currency. The margin contains in application of exchange rate having significant spread to be received when sold to customers for outward payment. However, bank may impose service charges as per their internal policy.

i agree with mehdi. however once mr. vincent told me that you may go with any charges as long as you can manage others

regds

shahriar

I think
a) negotiation commission is different from what you referred to. because The margin of exchange rate and having significant spread to be received when sold to customers for outward payment is not for negotiation in l/c only but a bank will get it even in money maket.commission is usually received for two reasons : 1- due to checking the docs and spending time,proficiency, specialty of the bank for it and 2- bearing of risk by negotiatin/nominating bank
b)
you suppose L/C currency is EUR and benef. is in Germany so the nominated bank for payment dose not need to exchange. what about in this case?

Nothing but service charge (or whatever name it is referred to) appears to be applicable in respect of situation 'b'.

Recent trend shows upward in trading through CAD basis in lieu of dc in EU countries.

Regards.........Mehdi