Episode #125 of the Stack Overflow podcast is here. We talk Tilde Club and mechanical keyboards. Listen now
47

Many people make money doing this kind of thing. Many more people lose money doing this kind of thing. You're basically making a bet that the market is wrong. What makes you believe that this particular currency will increase in value compared to your home currency? The other problem with this kind of bet is that it's expensive. You will need at least ...


41

I am Swiss but I will attempt to answer this as good as possible: 1 Storage You get a bank account. Done. A bank account doesn't get you a lot of interest, but it is a safe way of storing the money and you'll have access to it at any time. 2 Bureaucracy Germany is a little more bureaucratic than Switzerland but a simple bank transaction should be enough. ...


32

What you are describing is a speculation. Particularly, a long-term speculation. You propose to place a bet that: Your particular view of the fundamentals is correct (which it might be) Whatever shorter-term dislocations that cause major market players to price the ruble differently from how they otherwise would are bound to change within your investment ...


16

Large banknotes can be used for two things mainly: large transactions like buying a car (it happens both in the eurozone and in other countries like Switzerland) and as a store of value. If you live in the Netherlands or France, all this might sound surprising but there are huge differences in the way people use cash in the various countries of the eurozone....


15

Currency trading is basically a zero-sum game. You're betting against the experts that play the game. Why do you think you're better than they are? Especially with the overhead costs you must deal with, being average still means you lose.


13

Due to the issues in the Eurozone, many foreign investors were buying Swiss Francs as a hedge against a Euro devaluation. They were in effect treating the Franc like gold, silver or some other commodity with perceived intrinsic value. This causes huge problems from the Swiss, as the value of the Franc increased and their exports became more expensive for ...


10

If you want to make money while European equities markets are crashing and the Euro itself is devaluing: Own US Treasury bonds. It is likely that during a Euro crash, capital will flee to "traditional safe havens" like US government debt. This will cause the price of these bonds to increase. To actually make money here, you'd need to be prepared to sell in ...


9

A lot (sometimes called a round lot) always refers to the quantity of physical good that you're getting, like a carton of eggs or a barrel of oil. The tricky thing in the case of forex is that the physical good also happens to be a currency. A spot currency product trades in the denomination on the right-hand side (RHS) of the product name. So if you're ...


9

The drop in the value of the pound because of Brexit happened in June 2016. All price movements since then are against a baseline price that already takes Brexit into account, and largely reflect markets’ changing views of the likelihood of hard/soft/no Brexit. It’s gone up a bit recently because the chances of ultra-hard (no deal) or hard (May’s deal) ...


8

It's mostly VAT (value added tax or sales tax). For example an US IPad is $499 without tax, and a German IPad is EUR 499 including 17% VAT. The base price is actually only EUR 417. In addition to that, cost of business is a little higher in Europe because of tax structures and because smaller countries cause higher overheads.


8

To transfer US$30,000 from the USA to Europe, ask your European banker for the SWIFT transfer instructions. Typically in the USA the sending bank needs a SWIFT code and an account number, the name and address of the recipient, and the amount to transfer. A change of currency can be made as part of the transfer. The typical fee to do this is under US$100 ...


8

To clarify: you're asking whether a store can refuse your 200 EUR for arbitrary reasons (i.e. not the reason that they would have to give you a large amount of change)? If so, then yes, this is legal pretty much anywhere. The EUR notes are legal tender in the Euro countries, but this only means that they must be accepted to settle debt. And a normal store ...


8

Risk, reward, return, etc. If the economy is "bound to recover", then sure, invest in it, and reap the reward. But there are market forces at play here too. Additionally, when you say "bound to recover", can you say that with real certainty? You are not the smartest kid on the block, though you may be willing to take the most risk. When people invest, or ...


7

For such a short timeframe, I'd have it in the currency (euros) you need, and in a savings account. The 5 months is not a time to 'invest' this money. Even 2-4 years would suggest just a CD or short term Government bond.


7

FX markets trade 24 hours a day during the week, but not at weekends. Perhaps there's a small amount of after-hours or off-market activity, but broadly there wouldn't be much activity between 2200UTC on Friday (21st Nov on your plot) and 2200UTC on Sunday (23rd Nov on your plot).


7

Nowadays, the field is irrelevant for processing the transfer and completely ignored by the banks. Pretty much the only purpose it has is for documenting whom you intended to send the transfer to. If you mistakenly send a transfer to the wrong person (which is becoming extremely unlikely with the IBAN due to the builtin check digits) then they are mandated ...


6

Not a day goes by that someone isn't forecasting a collapse or meteoric rise. Have you read Ravi Batra's The Great Depression of 1990? The '90s went on to return an amazing 18.3%/yr compound growth rate for the decade. (The book sells for just over $3 with free Amazon shipping.) In 1987, Elaine Garzarelli predicted the crash. But went years after to produce ...


6

As the European crisis worsened the Swiss Franc (CHF) was seen as a safe currency so Europeans attempted to exchange their Euros for Francs. This caused the Franc to appreciate in value, against the Euro, through the summer and fall of 2011. The Swiss government and Swiss Central Bank (SNB) believe mercantilism will create wealth for the citizens of ...


6

The right answer to this question really depends on the size of the transfer. For larger transfers ($10k and up) the exchange rate is the dominant factor, and you will get the best rates from Interactive Brokers (IB) as noted by Paul above, or OANDA (listed by user6714). Under $10k, CurrencyFair is probably your best bet; while the rates are not quite as ...


6

In general, to someone in a similar circumstance I might suggest that the lowest-risk option is to immediately convert your excess currency into the currency you will be spending. Note that 'risk' here refers only to the variance in possible outcomes. By converting to EUR now (assuming you are moving to an EU country using the EUR), you eliminate the chance ...


5

The simplest answer would be: Because they can. Why charge less for something if people will pay more? One example are Apple products. While there the price number is not exactly the same in EUR and USD, they are so close that, effectively, the EUR product is more expensive. Many things go into a price. There might be reasons for products in the EU being ...


5

If we knew for sure that euros are only going to be more expensive in the future, then the answer would be easy: Buy them all at one time, so that we are getting them at the best price. Of course, we can't assume that to be the case, they could get cheaper, so the answer gets more complicated. Focusing strictly on monetary considerations, there are two ...


5

What's naive is believing that the current political situation is the only thing that has caused the currency go down guaranteed to be resolved in a way that is positive for the currency Oh, and that you're the only person who's thought about long-term developments in regard to exchange rates. Companies which use rubles only because it's necessary to ...


4

I'd recommend an online FX broker like XE Trade at xe.com. There are no fees charged by XE other than the spread on the FX conversion itself (which you'll pay anywhere). They have payment clearing facilities in several countries (including UK BACS) so provided you're dealing with a major currency it should be possible to transfer money "free" (of wire ...


4

Invest in solid companies, not in esoteric products built on sand. The problem is with finance, not with real economy: oil companies make money, mobile phone companies make money, airlines make money...


4

Well, you could just deposit the Euros in your French bank. In the US, you'll have to deal with foreign exchange services, unless you're talking large amounts for banks to want to handle (they'll handle small amounts too, of course, but not without a significant fee). Best thing I can think of is keeping them in a drawer with your passport. You'll use them ...


4

You will always pay exchange fees when you exchange currency. The minimum would the the price arbitrage - the difference between the buy and sell prices. Shop around and check where the exchange rate is the most favorable for you and go there. Don't just look for "no fees" signs because the fees are still charged, through a less favorable exchange rate. ...


4

Alternatively, just buy oil-based stocks/funds (commodities). The reasoning goes something like this. Russia is a predominantly oil-based economy (very large producer and supplies Europe). If you buy the underlying commodity at your local exchange, some benefits/risks accrue to you: - You avoid the currency risk (the ruble may still fall, you don't care)....


4

With permanent contract in Germany you shouldn't have any problem getting a loan. It's even more important than how much do you earn. To what should I pay the most attention? What kind of credit is it better to ask for? Generally, you should ask for a house mortgage (Baufinanzierungsdarlehen) with annuity as a type of credit to save on interest. Besides, ...


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