How to Increase Your Foreign Currencies While in Singapore

One of the best investments you can make even when you’re in Singapore is foreign currencies. If you know how to pick your currencies right, then you will realize you can soften the impact of currency fluctuations. It’s also easy for you to do international business.

But how do you exactly increase your currencies while in Singapore? Here are good ideas:

Open your own foreign currency bank account.

There are two general types of foreign currency accounts you can open while you’re in Singapore. These are foreign currency savings account and foreign currency current account. The difference between the two is that the latter is as good as cash in the form of check. With the savings account, though, you may be provided with an ATM card, which you can use to withdraw funds in several automated teller machines in the country, as well as internationally.

Opening a foreign currency bank account doesn’t have to be too difficult. A number of banks accept non-Singaporeans, though you have a much higher chance of getting accepted if you’re already a citizen or a permanent resident, you already have an existing account in the bank, or you are at least 21 years old.

To apply you simply need to drop by the bank and submit all your required documents. For non-Singaporeans, you may be asked of your passport, employment pass, and salary certification, to name a few.

There are a number of things you need to consider before you officially open this bank account. First, know what types of currencies are being accepted. There are hundreds of currencies in the world, but only a few of them are accepted by banks. This is because they want to go for the most stable or the most traded. That’s why a foreign currency account may accept only 5 or 10 currencies maximum.

Then you need to have an idea about the opening balance. Usually you need to put up at least 2,000 SGD to open a foreign currency account. You also have to know about the minimum balance you should maintain. Sometimes it can differ among currencies. Other amounts you should be concerned of are overdrafts and below-the-limit fee. Most of all, determine how much interest you’re going to gain. This is how you can earn from your currencies. Most definitely the higher the interest the better.

To better monitor your account, look for a bank that has an online banking service. Even if you’re traveling, you can still keep track of the currencies going in and out of your bank.

Engage in forex trading.

Trillions of money go in and out of the forex market every year. That basically tells you how huge and successful forex trading is. Moreover, because of the presence of trading platforms, you can trade at the comforts of your own home. Unlike in foreign currency accounts, there are more major players in forex trading, around 100 or more.

To begin forex trading, you need to have a forex broker. If you wish to make use of the platform, then it’s best if you can try the demo account. Though only good for a couple of days, you will have a general idea of how the technology works and how to trade in real time. You don’t have to worry about funds, since you’re given virtual money.

If you want to utilize a real forex broker then you have to choose wisely. First he or she must be certified or properly registered. The person should exhibit excellent knowledge and skill in forex trading. It is also essential he or she respects your financial decision, though your forex broker is free to provide comments or pieces of advice to you.

If there’s one huge negative thing about forex trading, it’s the fact that it’s risky. There’s no guarantee you will profit all the time. Nevertheless, there are also ways on how you can soften the impact of your losses.

Purchase a mutual fund.

Actually there are many different types of mutual funds, and one of these is called currency mutual funds. Like forex trading, you invest your mutual funds in a variety of currencies. However, you will feel the success of your investment in the long term. That’s why you have to be very patient. Hedging is usually undertaken to soften the blow of currency fluctuations.

Invest in certificates of deposit.

You can further diversify your account by investing in certificates of deposit. You can get them from banks, so you still need to inquire if they offer such portfolio. But if ever they do, you can actually invest your CDs in several foreign currencies. The interest rates will be based on the chosen currencies.

Diversification is key when it comes to boosting your foreign currencies. Couple it with persistence, clear knowledge, and discipline, surely you’re on your way to increasing your wealth in Singapore.

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