Investing in foreign currency and markets?

[PokerGuy]

Ok, so lets say you want to buy a foreign currency (euros or yen or something), or you want to invest in asian stocks. Sure, you could just buy into a mutual fund in the US that invests in asian markets etc, but is there a fairly easy way (for those who don't have millions) to have an account denominated in (for example) euros and invest in certain markets?

That way you're protected against the value of the dollar dropping, while at the same time investing in economies that you think are heading up.....

 

[Mark R]

Easiest way to buy international stocks is via ADRs which are traded on various US exchanges. The choice is limited but you get access to the biggest companies (e.g. GSK shares are traded in London, but you can buy GSK ADRs in NY. They're priced in USD just like a US stock, but because the underlying share is priced in £, the $ value will fluctuate with the exchange rate).

Most large stockbrokers offer trading on international markets (at least the major ones such as UK, Germany, France, Japan). It's up to the broker how they choose to deal with the currency conversion. Some give you a $ account, and give you a 'transparent' system - Quotes are given in USD, and the currency is converted at the time of your order. Some require you to convert to local currencies, which are then held in a denominated account - you then make the transactions in the local currency.

As it is, you probably wouldn't want to hold cash in a brokerage account because the interest rate tends to suck.