“One way or another, we are all exposed and used to currency fluctuations ‘” through business, travel or online shopping”
The third One strategy which I have been ‘˜ preaching ‘ to investors is a very unique and a very simple way: Traveler Checks Cheques , if you want to be a little be more “exotic” or “innovative”, you can also buy the actual bank notes.
This is probably by far the easiest way to benefit from currency fluctuations, it doesn’t pay any interest but the cash requirement is much smaller as most of the multi-currency deposits would require minimum $5,000 to $10,000.
With traveler che ques cks , you can simply go to the counter and purchase from $100 upwards of cash in another currency , and the choice is much more diversified than the multicurrency accounts. ,
You can also use using y y our credit cards to purchase traveler checks, so you can also earn and redeem the rewards points.
Transaction costs obviously are higher than banking accounts which needs to be factored in, but this means you can have a multi-currency portfolio account with $1,000 buying different traveler checks.
Simple FX Transfers Turn Into Big Dollars
One interesting fact I have learnt throughout the years are that many people I have known many people who have made money in foreign exchanges , and majority of them are not not as professional traders, but really just ordinary folks simply transferring the money between the through transfer of funds between 2 two countries.
You do not need to take the risk from leverage and you can still make profit just the same, and they are not even regarded as profit as in shares and properties! So, you do not even have to pay tax on it.
One of my members has done this so many times, she has bank accounts back in Asia, and that is all she does, but she transfers lots of $50,000 to $100,000 and over the years, she has made around $200,000 just switching the funds between the accounts.
Folks, simple minded people are usually the ones that make big monies.
A l ittle bit more exotic?
I love bank notes, and I love collecting them ‘” and this is another way to add a bit more color to your investment, after all, investment is really all about mathematics .
One of my part-time hobbies is to collect different bank notes especially from emerging economies ‘” recently I have bought Iraqi Dinar because I believe they will recover in future and its economy is on the way back, and many have pointed to Kuwaiti currency during 1991 Iraqi invasion, since the war has ended, its currency has appreciated significantly.
If you share the same interest as I have, this is a quite interesting way to diversify your portfolio . A t moment, I am looking at buying some Icelandic K rona bank notes , which is probably the worst casualty from this global crisis , not really for investment, but more as a hobby.