I'm sorry if this is silly, but i really want to know if it is possible to me to earn dividends(or selling stocks whatever) in another currency like U.S Dollar or Euros, because my country is on crisis and I don't even plan to live here in the next years, if i could that i would receive like 3x-2x of what I would receive investing the same on my country stock.

If the dividends get automatically converted to my country currency that's ok too but i would like to keep it on dollars or euros until I want to convert it

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  • why don't you ask the broker? – littleadv Oct 7 '15 at 4:15
  • I want a general answer. I didn't even knew that is the broker can decide on that. – Freedo Oct 7 '15 at 4:20
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    There's no general answer. It depends on the broker and the type of the account you have with that broker. – littleadv Oct 7 '15 at 4:21
  • Can you point me to some that allow this then ? I have no idea where to look for this. – Freedo Oct 7 '15 at 4:34
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    What country are you in? – JTP - Apologise to Monica Oct 7 '15 at 8:03

Most serious brokers and private banks will allow you to have multiple current accounts under one brokerage/bank relationship (if they don't, you should avoid them).

For example, you would have one current account for Euros, one for Dollars, one for Swiss Francs, and so on, depending on your needs. So, if you receive a Dollar dividend or coupon, it lands on the Dollar account, and it stays there until you give an instruction what to do with it (i.e. reinvest it, move it to a deposit account, convert it to another currency etc.).

But beware, your own country might limit local banks as to what currencies they can offer you, meaning that any income from securities indeed might be converted straight into your local currency, at unfavorable rates. In this case you might consider going offshore with your funds to a more flexible bank/broker, if your laws allow.

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This depends on the Bank the Corporate would use to distribute the dividends.

Generally for small amount, the Bank would credit the dividends in USD or Euro. The receiving Bank [your Bank where you hold the account] would convert this into the Account Currency. So if you have a USD account it will land there no conversion. If you give an account in local currency, it will get converted.

Of late Banks are building special systems and in such case the Bank the Corporate uses would convert the Dividends upfront and send it down in local currency. This way the Bank that a corporate uses makes more money on Fx Spreads and cut's out the Fx spread made by the local bank.

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