Investing in euros

H

HornsInTheHouse

500+ Posts
How does one efficiently convert large sums of money into euros in a bank account? It might be a good hedge if you believe the dollar will continue to lose value over the long term.
 
I'm with the first poster. I keep our "emergency fund" at an online bank. I would like to take some portion of that and transfer it into euros. How could I do that? I realize there would be some transaction costs on either end, hopefully no more than 1 or 2%, and then of course the normal currency risk if the dollar strengthens significantly before I transferred back into dollars. There's got to be a simple way to transfer into a euro-denominated account, right? Even if I forgo FDIC protection, I'm really only putting aside a portion of my rainy-day funds. I could live with that.
 
I've read a little more on this and it seems like it can be difficult (according to what I have read) to get an account open as well as low return on the accouns. Try reading this and see what you think.
The Link
 
I have a money market with my trading account at etrade, and they can switch it back and forth between currencies without fees, if I remember correctly.
 
I've done it on my E*Trade account. If for some reason you can't do it through your bank you can do it through them to avoid opening a brokerage account. Also if you do it in your etrade account you can trade on the european markets, if you so wish.

I would guess, though, that if you contact your bank they have some sort of financial dept that can set something up for you.
 
I think the easiest way is put the money in a brokerage account and buy FXE.

FXE tracks the ratio euro/dollar, and it even pays dividends similar to the interest yield that you would get in a savings account in Europe.
 
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