Hi,
As someone who lives near an international border and who enjoys
international travel (although who doesn't get to do nearly enough!),
I have found currency issues fascinating. I certainly wish I had put
my U.S. dollars into euros or Canadian dollars a few months ago -- the
return on my investment would be pretty good.
One of the major companies that can help you with online investment of
currencies is OANDA Corp. -- although I haven't used their services, I
have frequently used their site before traveling, as it is one of the
most prominent sites for finding out the latest exchange rates. You
can open accounts in dollars or euros and trade in numerous
currencies, and there are no account minimums or costs for deposits or
withdrawals. (They make their profits through the differences between
buying and selling rates.)
You can find the OANDA Corp. home page here:
OANDA.com
http://www.oanda.com/
The company has a good introduction to currency trading here:
Introduction to Currency Exchange and the FX Market
http://fxtrade.oanda.com/currency_trading/intro_currency_exchange.shtml
Another company, RefcoFX, also has an excellent introduction to
foreign exchange:
Introduction to Forex
"In the forex market, currencies are always priced and traded in
pairs. You simultaneously buy one currency and sell another, but you
can determine which pair of currencies you wish to trade. For example,
if you believe the value of the Eurodollar is going to increase
vis-a-vis the U.S. dollar, then you would buy the euro in the
euro/U.S. dollar pair. Obviously, the objective of forex currency
trading is to exchange one currency for another in the expectation
that the market rate or price will change so that the currency you
bought has increased its value relative to the one you sold. If you
have bought a currency and the price appreciates in value, then you
must sell the currency back in order to lock in the profit. An open
trade or position is one in which a trader has either bought/sold one
currency pair and has not sold/bought back the equivalent amount to
effectively close the position.
http://www.refcofx.com/whatforex.htm
Here's an article comparing foreign exchange with other types of
investments:
Benefits of Currency Trading vs. Equity Trading
http://fxtrade.oanda.com/currency_trading/fx_vs_equity.shtml
SmithBarney also has a brief introduction to currency trading:
Foreign Exchange: The Basics
"Foreign Exchange is the largest of the global financial markets.
Daily trading volume in the currency markets is estimated to be 1.5 US
trillion dollars.
"The volatility seen in the currency markets can create potential risk
as well as opportunity for clients. Our FX sales specialists can
provide advice on hedging currency exposure, transacting foreign
exchange or exploring investment opportunities in currency-linked
products."
http://www.smithbarney.com/products_services/other_investments/foreign_exchange/fxbasics.html
Here are some other companies that provide investment services for
individual investors:
Goldberg Financial Group
"The available Mini Trading Account was designed for those new to
online foreign exchange trading. There is a smaller deposit required
to open a mini account and trading sizes are 1/10th the size of a
regular account. The smaller trade size enables beginners and traders
to take smaller risks. The available Mini Account is intended to
introduce new traders to the excitement of foreign exchange trading
while minimizing risk by the use and trade of smaller funds."
http://www.goldbergfx.com/currency_trading.htm
Chicago Mercantile Exchange
"Average daily turnover in the foreign exchange (FX) market exceeds $1
trillion, making this market the world's largest. Although the world's
currency markets generally are thought of as the exclusive domain of
the largest banks and multinational corporations, nothing could be
further from the truth. In fact, with Chicago Mercantile ExchangeŽ
(CME) currency contracts, large and small investors alike can have
equal access to the foreign exchange."
http://www.cme.com/getting_started/gettingstarted:currency:factors.cfm
GCI Financial
"GCI Financial is one of the world's largest online brokers offering
commission-free trading in Forex and Share CFDs. GCI offers superior
internet trading software, fast and efficient execution, and the
industry's lowest margin requirements."
http://www.gcitrading.com/
RefcoFX
To get you started, the company offers a demo account where no real
money is invested.
http://www.refcofx.com/currency.htm
MG Financial Group
The company has a $1,000 minimum deposit.
http://www.mgforex.com/
SaxoBank
"An investment bank specialising in online trading of a wide range of
products to a global client base including corporations, financial
institutions, and private investors."
http://www.saxobank.com/Default.aspx
Before you invest any money, make sure you check out the company
carefully. Also compare the account costs. Some companies don't
charge any commission, but they may pay a lower rate for buying your
dollars or for selling you euros. It also isn't a bad idea to try out
the demos that the various sites offer so you can see how well you
like the software you'll be working with.
You should also check out your own bank (or brokerage, if you have
one) to see if it offers euro accounts or other foreign-currency
banking. Some of the larger banks do.
Finally, here's a good background series on foreign currency issues,
although it doesn't specifically focus on investments:
A Beginner's Guide to Exchange Rates and the Foreign Exchange Market
http://economics.about.com/library/weekly/aa022703a.htm
Good luck with your investment!
Sincerely,
Mvguy-ga
Google searches used:
"euro accounts"
://www.google.com/search?q=%22euro+accounts%22&sourceid=opera&num=0&ie=utf-8&oe=utf-8
investing foreign currency euros
://www.google.com/search?hl=es&ie=UTF-8&oe=utf-8&q=investing+foreign+currency+euros&btnG=B%C3%BAsqueda+en+Google
Yahoo search used:
foreign currency
http://search.yahoo.com/bin/search?p=foreign+currency |
