Given the strength of the dollar vs the euro, could people purchase euros here in the US (banks/money exchange stores) and sell them later when the Euro becomes stronger? Is this possible/legal? I assume taxes would need to be paid on the gains? Never dabbled in Forex so please forgive the newbie question. This scenario just keeps running through my head when I hear the news. And I keep wondering why people arent doing this 😅

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this is called arbitrage and yes it is legal but obviously the risk reward profile is not very attractive given your timing, modeling and volume must be incredibly tight.

people don’t do this because it is literally a profession and full time job. you gonna sit there and monitor forex on a bloomberg every minute of the day?

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Much better investment options out there. ESP with market where it is rn.

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VXUS

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Most people aren’t doing this because it’s in no way guaranteed. What makes you think the euro will inevitably get stronger

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Absolutely legal but totally impractical to do this with hard currency. If you really think the euro is an investment and you aren’t trying to be a currency day trader, you can buy into a fund.

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There are entire desks at investment banks and hedge funds that focus on currency arbitrage. You will not be successful doing this on the side, even though there are now FX influencers who will try to convince you otherwise. Also, If you actually try to do this with hard currency at currency exchange booths, you will get eaten alive with fees and poor exchange rates.

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Does anyone know what is the best way to buy foreign currency online? Thinking about a property and Europe and could start shifting some money to Euros.

Interactive Brokers for me

Personally, I do not think it will ever get stronger in near future (atleast 10 years)

Definitely do-able. But the challenge is that you are holding a bunch of Euros in some bank account with no yield (unless you look for investment opportunities in Euro)

With US, if you just do some passive market, you at least get some dividends out of it

At a min, this play should use IB or similar tool

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