Financial Information
If you want to hold foreign currency, is it best go to money exchange shop or Forex?
Question : If you want to hold foreign currency, is it best go to money exchange shop or Forex?
Say I’m Japanese, and I think US Dollar would be a good investment, and I want to hold the currency for 3 years, so should I go to local money exhanges booth, i.e. buy $ 10,000 or buy USD/JPY $ 10,000 in Forex?
10 pts. for good or detailed answer.
forex exchange
Best answer:
Answer by Charlie Mike
Definitely Forex. Basically you cut out the “money broker” fees. The quotes is easily 200 points above the bid and offer. The best way I think is to open a leverage margin account with a bank that also have a Foreign term deposit acct. Thus with Forex account you enjoy spot rates.
Even more important than eliminating fees and getting a better exchange rate is the fact that you have the power of leverage when trading Forex.
You can get $ 10,000 USD at the Money exchange shop for 1,173,064.69 JPY.
OR
With 1,173,064.69 JPY in the Forex market you could control over $ 4,000,000 USD.
Now don’t run off and do that right now! There are risks involved and you could certainly lose money if not properly protected through a hedging strategy or some oher such risk reducing tactic.
Paul
pupp52@yahoo.com