How does one move money into euros?

[midnight armadillo]

Ok, so I've been eyeing the dropping value of the dollar and the corresponding dropping value of my savings account.

This seems like as good a forum as any to ask: if I wanted to move some greenbacks into euros, how would I go about doing so?

[Ilsa]

1. You need a commodities account with

your broker, if you have one. I have concerns about this also, but this is really volatile business, from what I've heard.

I worry that we've missed the big downturn, and the dollar might start leveling off if US businesses can't afford to lose anymore. Of course, Bush* is still in the WH, and it seems like Bushes always cause a slide in the $.

[Inland]

2. You can find

euro denominated savings accounts on the web.

euro denominated bonds on the web.

europe-based businesses on the NYSE or NASDAQ.

Your goal, I think, to buy euros and invest them in something that will pay in euros, so that you receive both the return on investment and the return on a currency fluctuation when you repatriate your investment by converting back. So you have to evaluate the investment return as well as the currency exchange and compare it to your dollar investments, and George Soros already beat you to it. Good luck.

[Kolesar]

3. Invest in international stock mutual funds

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x12604

[ret5hd]

4. if all you are wanting to do is...

trade some cash for euros, just go to the nearest international airport and find the currency exchange.

[Art_from_Ark]

5. Sometimes "international" airports don't have currency exchanges

For example, you'd have hard time finding anything besides Canadian dollars at Bellingham International. And the last time I was at Tulsa International, there was no foreign exchange whatsover. Nor can I remember ever seeing a foreign exchange at Memphis International.

[ret5hd]

6. hmmm...

i'm sorry you take advertising and self-prompotion so literally. Also in tulsa is an industrial park called the Space Center...but don't go there expecting to find a flight to the moon.

[midnight armadillo]

7. That had occurred to me

I did some googling and found a US back that does euro-denominated accounts...with a minimum $10k starting balance.

Perhaps just swapping some cash over at Logan Airport would be the easiest way to go.

[Robert Oak]

8. Everbank.com $2500 initial deposit n/t

I'm started to feel everbank.com should pay me a commission I've posted
this so many times.

Look in worldmarkets. You can also do a CD for 10k.

[girl gone mad]

15. You can get a (relatively) high interest CD..

through everbank on some lesser currencies. I think the NZ dollar is offers a high rate, and might be a good choice. It's been rising against both the dollar and the Euro. The interest will offer at least a small bit of protection against a decline.

I'm holding off on buying foreign currency for the moment because there is just so much hype and attention focused on the dollar's decline. Long term, I still think there is a good chance the dollar will go lower, but there also could be an intermediate rally - particularly if Bush manages to pull off the appearance of free elections in Iraq or shows any interest in controlling our defecits.

One concern I would have with holding a foreign account or a CD through everbank (or any other institution), is that you've just got a piece of paper with your balance on it. If the dollar crashes, all kinds of things could go wrong and that paper might end up being worthless.

[idealista]

17. what else would you recommend?

I'm curious to know what you would recommend other than having a piece of paper with your money on it. I mean, I have some fruit trees in my yard. They won't pay my mortgage.

Do you mean that an account at a local bank where you can walk in the door is more secure? Or some sort of tangible assets?

[girl gone mad]

19. I'm not a financial planner,

and I would hesitate to make any recommendations. You should try finding a financial adviser that you trust.

Having said that, my main point is to emphasize diversification. There are risks involved in owning foreign currency, and certainly the most extreme 'worst case scenario' would be the bank not being able to pay out in a timely manner in the event of a dollar collapse. I probably shouldn't have said the paper would be worthles, but I can foresee a situation where the dollar tanks, people rush to withdraw foreign currency before it follows the dollar down, but the bank doesn't want to pay out and lose millions or billions so you're forced to wait.

It's best not to put all of your eggs in one basket, and not to count on a foreign currency account as an insurance policy.

I don't think it's a bad idea to have a small percentage of your worth tied up in tangible assets, but I would stay with tried and true assets that you are capable of maintaining and could sell to wealthy people. Vintage wines, baseball cards - the best would be something that you have some expertise on and could get personal enjoyment out of owning. Stick to quality and avoid anything along the lines of beanie babies.

Again, talk to a financial adviser before you make any major decisions because there are always tax implications involved, among other things.

[elsiesummers]

21. I think you may be right about a bear rally.

I'm less concerned about the problems getting money out.

The accounts are FDIC insured but I could take a big capital hit if one of my currencies crashes against the dollar.

The CDs that I purchased have a 3 month maturity date. They have rolled over twice and once I added some cash prior to rollover. If I want to close the account I have to notify them prior to maturity date, or it will roll over to a same duration new CD. You can close an account before it matures but I think you lose interest.

The NZD - it's more volatile. I bought it and it started to tank. Now it has been my best returning currency (between capital gains and interest), but it was my biggest loser for a while. And when I looked at the long term graph, when it started to dive (right after I bought it - last winter I think) - I didn't see any room in the trend for it to move higher - looked extremely topped up compared to Sterling and Aussie. I'm really pleased with it now - but you just can't tell which currencies are going to pay off.

I especially wonder how the Sterling (which I own) and the Euro may react if (1)China revalues yuan or (2)Japan stops intervening. If Asian currencies begin to gain more swiftly, will European currencies react negatively or positively?

[girl gone mad]

22. My instinct is that..

the Euro would take a hit, especially if the yuan is "de-pegged"(?). There is a small segment of the international financial community pushing for the yuan to become the new benchmark currency.

The Singapore dollar looks strong. Singapore is in very good financial shape and like NZ they have are somewhat sheltered against international currency turbulence. Plus, they'd likely benefit from Asian strength.

There are just more unknowns than knowns for the moment, so like others, I'm focused on preservation of capital and trying to make conservative decisions. I'm finally starting a small short position in the market, which I'll probably add to over time. Even though December is a historically good month to be long, I see downward pressure coming in, particularly on the Nasdaq. Lots of insider selling going on and higher interest rates are inevitable.

Edit: NZ does a lot of business with China, so you may already have somewhat of a hedge against a strengthening yuan.

[elsiesummers]

23. Thanks - yes I feel better about the Aussie D. and NZD than Steriling if

the yuan widens the band on their peg.

On one hand, China is supposed to do this for the WTO, but on the other they sound like they are trying to delay, delay, delay removing the peg for as long as possible.

[Bamboo]

9. Vulture Capitalism

If you have a Paypal account then you can transfer dollars into pounds,euros and yen.The fee is not as bad as an airport and you can spend it anytime and not wait to visit another country.Paypal is not a regulated bank so your money is not insured and your account could be hacked.eBay owns Paypal so I do not think they will disappear.If the dollar really falls then the euro might become the "reserve currency" on eBay itself so I have some so I will be able to buy yard sale junk during the global financial meltdown.

[fedsron2us]

10. Why choose the Euro ?

The European economies have their own economic problems with unemployment, weak growth, budget deficits etc. The Euro is only strong because the the dollar is a complete dog and the Asians are manipulating the forex markets to prevent their own currencies rising. You might be better advised to put your money in the Canadian dollar. They have no nasty budget deficits and the country has a lot of the mineral and energy commodities that the rising economies such as China and India need. Your only worry is that Bush may choose to add them to the Axis of Evil and invade when things get really desperate.

[Coryoth]

14. Canadian Dollars are a bad idea

The majority of Canada's trade is with the US. If the US Dollar falls the Canadian dollar will necessarily have to fall with it, or else Canada will simply lose huge chunks of their export market. Expect the Canadian Dollar to fall wiht the US Dollar - though possibly slightly behind.

Jedidiah

[AntiFascist]

11. Two online methods I know of....

www.everbank.com if you want to fund a bank account in foreign currency. You can also purchase foreign CDs with relatively higher interest rates.

or...

www.forex.com if you want to "gamble" and profit by up to a ratio of 100:1 on any losses (or gains) in currencies. You can subscribe to a good newsletter at forexnews.com that provides daily updates and graphs (middle of the night for Japanese report or early morning for US report) on policies and underlying fundamentals which affect currencies. Be careful because these markets can fluctuate a lot, or move in a single direction for a long period of time (like the USD/EUR has in going down.)

[Robert Oak]

12. Forget Everbank, here's my experience

I sent them the stuff by overnight express, they get it Monday morning..
they run a CREDIT CHECK for a cash account that doesn't even have
any checking with it...then do not contact me...I have to call them
I finally find out on THURSDAY that they want all of this additional
information that I must FAX...like my driver's license which of course
won't go through my little scanner so I have to go to Staples...
so I fax ALL OF THIS STUFF on Thursday, Friday, still no response..
I call late morning and still the account isn't opened...

then I complain saying how it's taking this long to open a friggin account while the dollar slides...

so they claim I'm "3rd on the stack" and so I call this afternoon and they are...CLOSED! NO ACCOUNT!

So, forget these people. Can you imagine trying to get a trade in
and on time in a violatle currency day?

NO way in hell.

[girl gone mad]

16. Or, worse,,,

what I mentioned earlier about trying to get your money out if the dollar did crash.

[elsiesummers]

20. I have accounts with everbank and no problems yet.

I agree that they wanted full verification before I opened foreign currency accounts - but these are 10K cds and since it's not a brick and morter shop you are expecting a lot. Fidelity - if you were openning a first time IRA with them, for example, would take just as long - want paperwork, etc - though I didn't fax anything with them - just did it all by mail and phone - but I was in no hurry.

Once you are in the Everbank system purchases and transitions are easier, IMO.

I think Everbank is thorough about documentation, and this is not a bad thing. If you really want to time your purchase I'd suggest first putting money in one of their traditional dollar accounts and having CD purchase authorization processed - then call on the day you want the CD purchased in order to get that days price. Or, fill out the paperwork and then wire transfer money on the precise day.

As for getting money out, minus possible capital losses (if the dollar gains value against your chosen currency, for example), they are FDIC insured.

It might be better to go though a brokerage house and buy a eurobond (the equivalent of a US treasury) in order to get the highest possible interest (I think you can get 1/2 to 1% higher this way) but then you will have reduced liquidity. Not sure what a brokerage would charge for this service. I think this is mostly considered an institutional type of transaction.

Or if you travel a lot, you could open a cd bank account in another country in a brick and morter bank and maybe avoid some fees.

What I don't like about Everbank is the .75% fee for currency change (so you pay 1.5% for getting in and out of, for example, the euro. I'm thinking of switching from pound sterling to yen - but it will cost me .75% to make that transition.

[thethinker]

13. Question

Is anyone familiar with 4X (forex) market? I went to a seminar regarding trading currencies with 4X. It was very interesting but I did not buy the software. I think the software cost around 2,000.

I have been thinking lately that I should have bought the software and put some money in trading currencies because since then my dollars have evaluated so drastically.

Has anyone tried this? Was it profitable? Would you advice others to get involved in it?

[AntiFascist]

18. I've been playing around with forex.com....

The "software," which is web-based, is free and they provide real-time graphs, news and commentary. It looks great so far. Just be really careful, you can make tons of money if the currency is moving in one direction, but it can also whip around and drive you crazy while your balance goes to zero. You really should have experience trading commodities, or at least practice with the demo that is available at the site.