Posted by forex at 8:21 AM
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1. Decide what foreign currency you need. Different banks and brokerage agencies allow different kinds of accounts. Many banks only allow currency accounts in British pounds, euros, Japanese yen, Canadian dollars or Australian dollars, though some of the major international banks allow many more currencies.
2. Create a list of possible banks or brokerage companies with which to work. It may be necessary to open an account with a foreign bank depending on the desired currency.
3. Go to the bank online, visit its local branch or call its toll-free number to determine if it will accept banking in the desired currency.
4. Compare the different banks you've contacted for the best available currencies, online services -- some banks do not allow private individuals to send online international wire transfers, currency conversion fees, withdrawal fees, interest rates and ease of banking.
5. Choose a bank or brokerage company with which to bank. A foreign bank may require considerably more documentation to open an account than a local bank. Some countries do not allow foreigners not living or working in the country to open bank accounts. If you want to open a foreign account, then contact that bank directly before proceeding.
6. Complete the application and set up the account. You can do this online if you already have a bank account at the desired bank. If you are opening a new account at a new bank, then you will be required to go into the bank or provide proper online digital documentation, such as a Social Security Number, photo identification, official government-accepted identification, proof of address and others depending on the bank. Setting up a foreign account will often require many more pieces of identification, but all banks have different requirements.
7. Deposit or transfer money into the new foreign currency account. You will have to pay all conversion, transfer and other possible fees. Always maintain the minimum account balance or extra charges will occur.
8. Request electronic statements. They save paper and you can print them later if you need them for tax purposes. You must report all income from all bank accounts to the Internal Revenue Service.