Investing in foreign currency

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Chris S

Legendary Member
Location
Birmingham
I was thinking of transferring some of my savings into a foreign currency in case the Pound crashes.

What's the best way to do it? Paper notes, a Euro bank account, etc?
 
D

Deleted member 26715

Guest
You're too late, now is the time to be buying we're just about to start riding the crest of the wave
 

Brains

Legendary Member
Location
Greenwich
Depends on the amount.
If it's a couple of grand, frankly then best to get yourself down to the local supermarket or post office and get cash and put it under the mattress.
If it's more, then best to open a Euro bank account and do a proper transfer

It's a sensible precaution, as if the pound goes up, you are unlikely to loose much, as long as you go on holiday in Euroland at some point over the next few years.
If the pound tumbles, you will be laughing all the way to your rubber boat as you escape across the Channel to France
 

nickyboy

Norven Mankey
I'm not going to comment on the wisdom or otherwise of converting GBP into another currency

However, if you're wanting to hold one of the major currencies instead (such as USD or EUR) then the easiest and most cost-effective way to do so is to open a bank account in the relevant currency and t/f from your GBP account. Be aware that banks generally do not let you maintain a forex bank account free (unlike GBP current accounts). They will charge you a maintenance fee
 

srw

It's a bit more complicated than that...
It's not investing, it's speculating.

I'm not going to comment on the wisdom or otherwise of converting GBP into another currency
I am. I think it's a dumb idea unless you are a financial professional running huge amounts of assets, or someone with a large and known bill to pay in a foreign currency for whom certainty is a better option than the possibility of losing money.

I suspect that neither kind of individual would ask for advice from random people on social media.
 

Beebo

Firm and Fruity
Location
Hexleybeef
By the time you have converted the money in and out you will be down quite a bit anyway.
 

Brains

Legendary Member
Location
Greenwich
By the time you have converted the money in and out you will be down quite a bit anyway.
It's not investing, it's speculating.


I am. I think it's a dumb idea unless you are a financial professional running huge amounts of assets, or someone with a large and known bill to pay in a foreign currency for whom certainty is a better option than the possibility of losing money.

I suspect that neither kind of individual would ask for advice from random people on social media.

If you know you are going to go on holiday to €uro-land (assuming you can get a visa!) then converting a holiday or two worth of spending money into €uros can be a very sensible option. It's called hedging.

No matter if the currency goes up or down your rate is fixed, so you can't loose (you may not win either)
You know exactly what you have and what it will buy.
The only reason hedging could go wrong is if there was runaway inflation of the €uro before you went on holiday.
I suspect the £pound is far more susceptible to runaway inflation that the €uro!

However I agree, that if you are talking about large sums of money, then you are speculating, and I can think of a lot safer money games to play.
FX trading is a game for the big boys.
 
OP
OP
Chris S

Chris S

Legendary Member
Location
Birmingham
It's not investing, it's speculating.

I am. I think it's a dumb idea unless you are a financial professional running huge amounts of assets, or someone with a large and known bill to pay in a foreign currency for whom certainty is a better option than the possibility of losing money.

I suspect that neither kind of individual would ask for advice from random people on social media.

but you think it's a dumb idea to wear a cycle helmet ...

Anyway, a no-deal Brexit is off the table so the Pound is looking a lot more stable.
 

Brains

Legendary Member
Location
Greenwich
I have invested in a foreign currency called bikes. Having problems spending it though. Removed a bolt to pay for a loaf of bread at the COOP but they would not accept it.

The Co-Op would not accept US Dollars either.
You need to take your currency an Exchange, which is available on many high streets.

To convert US Dollars to Pounds I'd suggest Barclays
To convert bike bolts into Pounds I'd suggest Evans
To convert Pounds in Bread I'd suggest the Co-Op

:smile:
 
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