Posted by forex at 2:16 AM
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1. Determine your foreign currency account needs. If you're planning to go on a vacation or live for an extended period in a foreign country, it's a good idea to open an account at a bank where you can easily access your money and make use of financial services. This may be working with an international bank or with a bank local to that country. If you're looking for a method to hedge against currency fluctuations and international access isn't that important to you, a foreign exchange account may provide lower currency conversion fees and greater convenience.
2. Compare interest rates and fees offered by the banks that offer foreign currency accounts. Check specifically for currency conversion fees and international wire transfer costs. Popular foreign currency account providers include HSBC, Everbank, Union Bank, Lloyd's TSB and Barclay's. Rates for such banks are not widely advertised, so you may have to contact multiple banks individually to get more information. Most popular online brokerage companies offer foreign currency accounts, including Schwab, eTrade and TD Ameritrade.
3. Contact the bank or brokerage firm with which you would like to open an account. If the bank is international, you will need to present a copy of your passport to open an account. Opening a domestic account in a foreign currency will require that you present some form of official government-issued identification. Brokerage accounts will require that you present your personal information and your Social Security number.
4. Deposit the minimum required balance in the foreign currency account. If the account allows you to deposit multiple forms of currency, you may be able to open an account with a minimum deposit in dollars and then convert it to the other currency. Pay all relevant fees related to opening the account.