Best Foreign Currency Investments 2019 – FOREX Guide For Today
The best place to exchange foreign currency, of course, is the world’s foreign exchange market. Also known as the currency market, or FOREX, this is an international decentralized market that allows you to invest, sell, or exchange currencies at either the current exchange rate or at a pre-determined price.
Once dominated by investors from large banks and financial institutions, the foreign exchange market is now accessible to everyone.
WHICH FOREIGN EXCHANGE SHOULD YOU USE?
We consider forex to be one of the best foreign currency opportunities for people looking for a way to grow their money, either as a goal in itself or as part of a strategy to build an investment portfolio as a retirement account.
Compared to other financial markets, like the equity market, you’ll be able to enjoy many unique advantages when you focus on forex.
- It’s the best place to buy foreign currency because you can trade without the burden of complying with numerous trading regulations.
- It’s the best place to exchange foreign currency because you can buy or sell around the clock. Since the market is online, you’ll get live updates on trends suggesting the best way to buy foreign currency directly from your home computer.
- It’s the best way to get a foreign currency because you can focus on profit without diluting your cash paying a middleman any transaction fees. Unlike other financial markets, there are no exchange fees, finance fees, commission fees, or most of the other types of fees common in financial markets. Consequently, it is much easier for you to make a profit. This freedom is possible because the market is international. It’s not a local market managed by the government of a country.
- It’s the best place to get foreign currency because you can spend as much or as little as you like, as well as sell whenever you want because the forex market has high liquidity.
IS FOREIGN EXCHANGE SAFE? IS IT THE BEST WAY TO BUY FOREIGN CURRENCY?
All financial markets and business ventures come with some risk, even places considered to offer the best foreign currency exchange rates. First, there is the risk of making a bad investment. Then there is the risk of getting caught in a clever scam based on hacking the foreign exchange rate.
The best place to buy foreign currency online is to work with a registered currency broker. The presence of authorized online brokerages will help you find the best foreign currency rates.
Buying foreign currency at the best rates and taking advantage of available margin trading accounts have made it possible for individual investors to avoid getting scammed. All things considered, a reputable brokerage is one of the best places to add exotic currencies to your investment portfolio.
Still, there is no protection for those who don’t study the markets, who don’t have a well-thought-out, logical strategy, and who don’t understand the risks and rewards of trading in an over-the-counter market or how their local currency compares with that of other countries. There is no point in finding the best place for foreign currency exchange if you don’t know how to use the most effective forex trading strategies.
Assuming, then, that you find a registered broker with a proven track record for delivering excellent service and assuming that you know what you’re doing when it comes to understanding the best way to exchange foreign currency, then you have good reasons to feel safe when it comes to forex trading.
WHAT IS BEST FOREIGN CURRENCY INVESTMENT FOR THIS YEAR?
Although the market changes from one month to the next, you will always find some great opportunities.
If you want to go long, we consider the Mexican peso, the Russian ruble, and the Japanese yen to be excellent opportunities. If, on the other hand, you prefer to go short-term based on your trading strategy, then we recommend looking at the Euro, the Israeli shekel, and the Chinese Hong Kong dollar.
With that said, many people are looking for a promising currency that is less mainstream. They are looking for something off the beaten path that will have a big payoff using a buy-and-hold strategy, waiting until just the right time to unload it at a profit. In other words, they are looking to buy low when only a few people are interested and then sell high when many people are suddenly enthralled by the currency based on news reports by the financial media.
If you’re looking for these types of alternative investments, then you may want to consider investing in the Iraqi Dinar or the Vietnamese Dong.
WHY THE IRAQI DINAR OFFERS ONE OF THE BEST CURRENCY EXCHANGE RATES
The economy of Iraq is being revived as the infrastructure is being rebuilt. Currently, the Iraqi government is focusing on a five-year reconstruction plan to reboot the economy. It’s a plan that will allow Iraq to be part of a modern economy again. This is good news for those investing in the Iraqi Dinar as an alternative investment.
WHY THE VIETNAMESE DONG OFFERS ONE OF THE BEST CURRENCY EXCHANGE RATES
Another currency that is promising—and underestimated–is the Vietnamese Dong.
This currency appears to have a good year ahead, although expert opinions differ on establishing the strength of the currency compared to the US dollar.
The are many good reasons for positive forecasts about the future of the Vietnamese dong; but, perhaps, the biggest one is that Vietnam now has a flourishing economy. In fact, Vietnam currently ranks as the 47th largest economy in the world judging by its gross domestic product (GDP) and purchasing power parity (PPP). Two primary causes for this rapid economic growth are attributed to tax reform and strong domestic consumption.
SHOULD YOU BUY CRYPTOCURRENCIES OR LOOK FOR A FOREIGN CURRENCY TO INVEST IN?
Newer investors are often conflicted about whether they should finance cryptocurrencies, like Bitcoin, or whether they should spend their dollars on traditional foreign currencies.
This is a tough call. Our view here at Treasury Vault is to observe caution. We don’t know if this is a bubble about to burst, an idea overhyped by the financial media that will sputter and burn out, or if it’s an emerging trend and early adopters of the newer cryptos will enjoy the same mega-success as those who purchased Bitcoin around 2009.
All we can say is that although the future of cryptocurrencies looks promising, it’s also uncertain. Consequently, the market is highly volatile. So, while it’s fine to make small bets, it would be better to build your investment portfolio on well-established foreign currencies.
WHAT’S THE BEST FOREIGN CURRENCY TO INVEST IN?
Apart from the recommendations we made earlier, the best way to figure out the right foreign currency for you to buy is to look at statistical data. Fortunately, there are plenty of data charts available on the six top-traded currencies in the world to figure out any emerging trends.
So, besides looking for outlier opportunities, you can also make handsome profits from trading with the U.S. dollar, the Euro, the Japanese Yen, the Great British pound, the Canadian dollar, and the Swiss Franc.
What do we mean when we suggest you look for statistical anomalies?
The best investors in the world rely on statistics to decide the perfect time to go long or short on any market. They also keep up with the latest news about the currency they are watching so that they can put the statistics into a meaningful context. If a county has a low-interest rate or experiencing runaway inflation, they try to understand why this is happening.
Although you may only be a beginner or intermediate investor, take the same attitude. It doesn’t matter if you don’t have a high level of private equity nor access to large amounts of investor’s equity; you, too, can do well in FOREX if you assume the right attitude, takes step to educate yourself about the reason for market moves, and get good at learning how to use an FX brokerage to buy and sell currencies on margin.
Here is how to best buy foreign currency:
If you put down as little as $500, you can purchase currency with a 50:1 margin level. But this is only one example of a ratio that can work in your favor–even higher ranges are possible. Still, the thing you must keep in mind is that the greater your leverage, the higher your risk of loss. The most rewarding trades can also be the riskiest because the best opportunities usually occur in highly volatile markets.
So, what is the best foreign currency to buy?
The best foreign currency to buy could very well be the US dollar, the Euro, the Japanese yen, the Great British pound, the Canadian dollar, and the Swiss franc. To decide where to invest try to discern the best foreign exchange rates as well as the worst ones and take advantage of the small differences.
You may also want to try a more unconventional approach, like going long on the Mexican peso or going for a buy-and-hold strategy with the Iraqi Dinar or the Vietnamese Dong.
WHAT IS THE BEST FOREIGN CURRENCY STRATEGY?
While there are many possible strategies, of course, when you want to buy foreign currency at the best rates, we believe the following three strategies will allow you to benefit from statistical data provided by the best foreign currency exchange when making trading decisions.
1. Take advantage of purchasing power parities. Buy and sell based on changes in the purchasing power of one currency in relation to another.
2. Use a spread. This is the difference between a currency with short-term and long-term interest rates. Every market, including FOREX, has a spread. This is the price difference between where you make a purchase or where you sell an underlying asset.
3. Try a Momentum Forex Strategy. Base your decisions on momentum. Stick to a minimum of a six-month raw price momentum.
WHERE IS THE BEST PLACE TO BUY FOREIGN CURRENCY?
When it comes to buying foreign currency, you must make a distinction if you’re buying foreign currency from your local bank because you’re an international traveler or as an investor interested in speculating with major currencies.
In the event that you’re both traveling and investing, keep your travel money separate from your foreign exchange investments. In fact, don’t even use the same credit card. By keeping your money separate, whether it involves cash or credit cards, you’ll avoid all sorts of confusions when it comes to figuring out issues like what card you used or what transaction fee you paid.
The best way to get foreign currency for travel is to use a bank, and the best bank to exchange foreign currency may be the one where you currently have an account. Meanwhile, the best place to get foreign currency for investment purposes is a brokerage. You’re not restricted to just using cash to fund your account. Besides cash, you can use a card, like a debit card, prepaid cards, or credit cards.
When researching a brokerage, do your due diligence. Stick to a brokerage in your own country because it is easier to verify their authorization. You should avoid foreign brokerages, even if your foreign currency deposits in some overseas banks.
So, look for the best place to exchange foreign currency in the U.S. rather than fall into the temptation to sign up with foreign brokerages via the internet. The reason for this is simple–it’s often difficult to determine how well-regulated a foreign brokerage might be. In some cases, too, you may have to pay foreign transaction fees.
WHO OFFERS THE BEST FOREIGN CURRENCY EXCHANGE RATES?
If you are an investor looking for the best place for foreign currency exchange transactions, perhaps an easy way to get into foreign currencies or gold bullion, then you may want to open a foreign exchange brokerage account. This will allow you to buy a currency directly using a margin. Since foreign currency trading still involves risk, be sure you educate yourself on the currencies you finance.
The new Iraqi dinar (IQD), which is the cash of a post-Saddam Iraq, is one of our most popular alternative currencies. We exchange denominations ranging from 50 to 25,000 IQD. Another popular currency is the Vietnam Dong (VND). You can buy either or both these currencies from us with full confidence. Usually, a buy-and-hold strategy will work best with these alternative strategies, because their economies are set to improve and force a revaluation. In other words, first, buy low, then sell high.
We invite you to learn more about what options we offer to build a smart, diversified portfolio if you’re in search of the best place to order foreign currency by visiting treasuryvault.com.