As the AUD is very healthy right now, is anyone investing in any foreign currencies? How do you do it? The only bank I've found so far that has foreign currency accounts is HSBC, any others out there?
Best Foreign Currency to Invest in Now and How?
Jaxx on 26/04/2010 - 09:30
Comments
Yeah I wouldn't buy USD at the moment, too much risk. I was considering Euro or HKD or maybe China $.
maybe consider selling Euro but not a buy. Yuan is possible but it is a longer term investment so not suitable for short term trading.
re comment below that "With AUD being so high, isn’t it pretty much a sure bet that eventually you’ll make some money" just remember if it was a sure bet then hedge funds and traders with deep pockets and extensive experience are well ahead of you. Remember the Buffett warning "if u r in a game of poker and if you dont know who the patsy is within 1/2 an hour, you're the patsy".
If USD is risky, HKD will be the same as they are tied.
You can trade forex through CFD company. (I recommend IG markets) Forex margins are like 1000:1. Due to the risk involves I'd recommend you open a paper account (practice account, no money involves) and try for several months. All your money can get disappeared faster than you know it….
With AUD being so high, isn't it pretty much a sure bet that eventually you'll make some money?
With the margin so high, how much are you prepared to lose. If you have no idea what you're doing then it's probably better to take your money to the casino. :)
Agree that IG Markets is a good option, especially because you can use mini's. In a normal FX trade, one unit consists of 100,000 of the base currency. For minis the unit is 10,000 of the base currency. A few warnings. The leverage is very high so you need to be careful, especially as some of the FX markets can move pretty fast. Secondly be aware of the interest rate differential on open positions - in some cases you will receive this interest and in other cases you'll have to pay it.
Good luck.
for those consider using cfd, just make sure you avoid cmc market in everyway possible.
not worth it…invest locally or ASX..unless you do 100K+ then you might see a insignificant increase to the risk of investing in USD.