Viralnews77 - Investment in foreign exchange or foreign currency is still less popular amidst the onslaught of various types of other investment instruments. One of the factors that makes foreign exchange investment less ogled is because it is considered to require very large capital. In fact, starting a foreign currency investment does not always require a large capital.
However, if you really want to start investing using foreign exchange, you are strongly discouraged from using borrowed money. This is because investing in foreign currencies carries a very high risk. So, you can also experience a fairly large risk of loss.
Foreign Currency Investment Function
Not only has a function as a foreign currency. Forex also has many other functions. Some of them are as follows.
1. International Exchange Tool
When shopping for products using foreign platforms, you can use foreign exchange as an international medium of exchange. The presence of this foreign currency will also make it easier for you to carry out various types of export and import activities for business needs.
2. Exchange Control Tool
Foreign currency investment will also benefit you when there is a decline in the value of the rupiah currency. You can also use foreign exchange as a benchmark or comparison of currency values from various countries. That way you will know when to sell or buy forex for investment needs.
3. International Trade Tools
The presence of foreign currencies in various countries also makes it easier for business people to make buying and selling transactions easily and practically.
Advantages of Foreign Currency Investment
Investing using foreign exchange is indeed very tempting because it can generate profits that are many times over. Here are the various advantages that you can get by investing using foreign currencies.
1. Buy Dream Import Items
Not a few lovers of imported goods who deliberately invest in foreign exchange to get the imported goods that they dream of. When the value of the rupiah against the dollar weakens, the price of imported goods will certainly increase.
However, when you have foreign currency savings or invest in the best foreign currencies such as the dollar, for example, the weakening of the rupiah will not affect the desire to buy your dream imported goods. Sales of gadgets such as tablets, smartphones and laptops are some examples of goods that are strongly influenced by fluctuations in the value of the rupiah against the dollar.
2. Realizing the Hobby of Traveling to Overseas
Traveling abroad will be easier when using foreign currencies, especially the US dollar. The dollar is also the best foreign currency investment option today. It can be said that almost all countries in the world accept US dollars as a means of payment transactions.
Even when you are in the destination country, you will no longer be bothered to exchange it for the currency of the country you are going to. In addition, the value of the US dollar is also quite stable. If the American dollar suddenly strengthens compared to the currency of the destination country you are visiting. Then this is certainly an advantage for you.
3. Make it easier for parents to prepare children's needs for school abroad
Foreign currency investment will also help parents who aim to send their children abroad. It is undeniable that the cost of education needs abroad is certainly different from the costs required when studying at home.
Not only about the cost of education, parents also need to prepare the cost of their children's living needs, including the cost of housing to the cost of their daily needs. By investing as early as possible for the provision of children's education, parents will no longer have financial constraints in the future.
4. Profits Against Dollar Exchange Rate Fluctuations
The value of the US dollar has continued to strengthen in recent times. The value of the US dollar which continues to strengthen against the value of the rupiah is certainly very beneficial for people who have foreign currency savings such as the US dollar.
5. As a Form of Wealth Diversification
In addition to investing in various types of assets such as gold, land or other properties, you can also invest using foreign currency instruments as a form of wealth diversification. Thus, when the rupiah exchange rate decreases, the value of investment assets in foreign currencies will remain stable.
6. Free Administration Fee
In general, some types of banking do not provide administrative costs when they want to invest in foreign currencies. Without this administrative fee, the investment funds that you enter will remain intact without any discounted fees.
7. Flexible Term
In contrast to deposits that have a predetermined time period, foreign currency investments have a more flexible time duration. You can choose to invest for the long term or short term.
8. Have Competitive Interest
Investing in foreign currencies also brings higher interest rates when compared to saving at conventional banks. The presence of competitive interest is also one of the reasons why many people look to foreign exchange as a very profitable type of investment.
Profitable Foreign Currency Investment Tips
Although foreign exchange investment looks very tempting, but before diving directly into the world of foreign currency, you need to understand a few other important things.
1. Determining the Purpose of Forex Investment
Not much different from other types of investment instruments. Before starting to invest in foreign exchange, you still need to determine your investment goals first. You can share these goals for several purposes such as the need to buy imported goods, to open a business in the future, to travel abroad or to study abroad.
2. Choosing the Best Foreign Currency Investment
The name of investment is certainly aimed at getting as much profit as possible. Therefore, if you plan to start investing using foreign exchange then make sure to choose the strongest type of foreign currency in the world.
There are several types of foreign exchange currencies that are targeted by forex investors, including the American dollar (USD), Australian dollar (AUD), Euro (EUR), Pound Sterling (GBP), Yen (JPY), and Singapore dollar (SGD).
3. Invest Foreign Currency in Trusted Institutions
You need to know that it is not only rupiah currency that can be counterfeited. Foreign currencies from various countries are even more easily counterfeited in an era that is increasingly developing like today. What's more, foreign exchange investment has begun to be ogled by many people. This of course can be used by many people who are not responsible for committing fraud.
Therefore, do not easily believe in foreign exchange investment offers that provide very easy terms and even offer unreasonable interest. In order for foreign exchange investment to be safer and more profitable, choose an investment institution that is credible and has long experience. You can visit well-known banks to money changers who already have an official certificate.
4. Get the Latest Forex Information
An investor must be diligent in monitoring the latest foreign exchange rate movements. This is because the value of foreign currencies is always increasing and decreasing. Factors that influence these fluctuations can be caused by the global economy or the national economy.
If the value of the currency you are after is weakening then it is the right time to buy forex. Conversely, if the currency of a country strengthens then you can sell it as quickly as possible. That way you will also benefit from the sale.
5. Understand Forex Investment Rules
Forex investment can basically be done online. However, if you want to try investing using foreign currencies offline or through banking, then you need to follow the rules imposed by the banking sector.
When investing in foreign exchange through banks, you need to pay close attention to the condition of the currency. Keep the foreign currency you have as best you can. Make sure there are no scuffed or torn parts. If there is damage to the foreign currency, it can reduce the value of the currency.
6. Prepare Investment Fund
Remember! Foreign exchange investment funds must be pure cold money or not borrowed money. Using borrowed money to start investing is highly discouraged. Having debt due to investment losses will only complicate your life. Therefore, use personal funds that are really intended for investment purposes.
Investment to foreign currency transactions is not difficult anymore in the era of technology that is growing rapidly. Therefore, digibank by DBS provides various conveniences to its customers in making foreign exchange investments.
- Many Choices of Foreign Currency
Not only one or two foreign currencies, digibank by DBS presents its customers with the 10 best foreign currency choices in the world. Several types of foreign currencies presented include USD, SGD, AUD, EUR, GBP, CAD, CHF, HKD, JPY, NZD, and CNH. - Competitive Interest
Not only does it offer competitive interest, you can also start investing in foreign exchange with a fairly low capital. Only with a capital of USD 100 you can already start investing using foreign currencies.Even without the need for large capital, you can become a forex investor today. Interesting right? - Tenor 1 to 12 Months
also offers foreign currency investment tenors from 1 to 12 months.
Foreign currency investment in 2022 is indeed on the rise. The more people who are literate with financial needs, the more people put their assets in foreign exchange investment instruments. You too can be one of them.