How to spread my Euro risk?

me a mom

Hi,

I dont have a fortune.... just a few years childrens benefit saved.

Looking at all the shenanigans at the moment I wouldn't mind getting some Canadian $ / US $ / Sterling - spreading my Euro risk basically. Not going to offload it all but wouldn't mind have a few (small) thousand somewhere else....

This is probably very daft but other than buying hard cash in the bank how do I do this?

Thanks

irishh_bob

me a mom wrote: »

Hi,

I dont have a fortune.... just a few years childrens benefit saved.

Looking at all the shenanigans at the moment I wouldn't mind getting some Canadian $ / US $ / Sterling - spreading my Euro risk basically. Not going to offload it all but wouldn't mind have a few (small) thousand somewhere else....

This is probably very daft but other than buying hard cash in the bank how do I do this?


Thanks

to do that would take at least a week , would involve oppening a bank account in an offshore bank , hsbc or the like , a lot to do with getting i.d away etc

best option might be to just go into a beaurau de change and buy sterling , canadian dollars , swiss francs etc and put it under the matress

ixus

Welcome to the Carry Trade!

What is the Carry Trade?

There's no 100% guarantees out there anymore, well, there never was.

The Carry Trade basically entails borrowing in a low interest rate environment and putting that on deposit in a high interest rate account in an appreciating currency. You benefit from the appreciating currency + (high-low interest rate). Massive currency risks out there at the moment.

me a mom

Thanks for response.....I read through that but I must be missing the point....
I dont want to borrow any euros I 'just' want to but some fx and not store it under my matress......but I do want it 'safe' in an 'fx type account' in my name in a foreign financial institution.....or advice regarding similar.
Excuse my basic knowledge & terminology. Normally I am not quite so stupid (ok maybe a little!).
Tks

me a mom

Sorry just saw there were 2 responses now......only saw the Carry Trade one initially....
Think I might order some FX from my bank to collect next week, unless I figure out something else.
Thanks

strmin

Open account with decent broker without annual fees. Transfer Euros, buy any currency you want and that's it.

me a mom

Thanks a million for response sorry though what kind of broker do you mean? A stock broker?
Any tips?
Tks

strmin

Yes, stock broker.

ixus

The point of the Carry Trade example was not that you have to borrow.

You could put your money on deposit in a foreign bank account in a country that has an appreciating currency and is paying high interest rates on deposits.

Why pay a spread to a broker to buy FX when you can do this?