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Where To Start When Investing In Foreign Currencies

The way to invest in foreign currencies begins with a brokerage, which can indicate the best options for each client. You can search the best forex brokers.

“Nowadays, you don’t have to leave Brazil to be exposed to foreign investments. You get, through market platforms, assets that will be indexed to international assets, consequently, to international currencies ”, says Rodrigo Moliterno, partner at Veedha Investimentos.

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Funds are a consensus when it comes to security, but they vary in nature. For those just starting out, foreign exchange funds are a good tip, as they are seen as money protection strategies. This means that, when investing funds in reais, in a dollar or euro, the amount invested will follow the variation of these currencies, up or down.

But where does the protection come from? Hypothetically, if the dollar is worth R $ 5 and the investor invests R $ 1,000 in a foreign exchange fund, he would have US $ 200 invested. If the dollar rises to R $ 6, the resources invested in reais also grow at the same rate as the dollar. In other words, the investor’s portfolio will indicate an amount of R $ 1,200, in the new conversion, but he will continue with the US $ 200. If the dollar experiences a devaluation, then it is possible to have some gain.

In other words, the idea of ​​protection is because there would be neither gain nor loss of money. Fábio Macedo, commercial director of Easynvest, points out that this is a good option for those who intend to travel and want to guard against a possible rise in foreign currencies.

“The person who is looking for a trip in a year, he should not buy paper money now. The recommendation is to start investing in a foreign exchange fund, because then it has protection. If the dollar rises or falls in this period, it will have, in reais, the same dollar amount for the trip ”, advises Fábio.

The hedge funds are a riskier option since management is more aggressive, suitable for investors moderate a thrown. Here, it is necessary to pay attention to which currencies make up the fund, in what proportion, since they can share space in the portfolio with other assets, as well as the expectation of return and the fees charged by the manager.

“In this multimarket scenario, the manager saw him reading, what he thinks will happen, and will position himself to make money in relation to the exchange rate, just as he does in relation to the stock exchange, the interest rate, etc.” , explains Fábio.

This investment is not protected from exchange variation, that is, the chances of gain are the same as losses. If the fund promises a gain of 5% per month, that same percentage can be discounted if there is a depreciation of the invested currencies.

Is it possible to invest in coins on the stock exchange?

Yes, it is possible to invest in coins on the stock exchange. In fact, there has been offering from a number of forex brokers,  a series of currency futures contracts for some time. There are several currency pairs contracts, in which the investor buys one currency simultaneously with the sale of another. In this case, one is expected to appreciate, for example, the dollar, at the expense of another, such as the euro.

The principle of this modality is totally speculative, that is, it is for those more aggressive investors, who accept to take risks. Until a few years ago, this type of investment was only possible in markets outside Brazil, that is, access was more difficult. With the availability at B3, participation became cheaper and available on the platforms of Brazilian brokerages.

“If you bought a contract and it increased by 5%, then you had a 5% change in your capital”, stresses Victor Hugo, from Infinox. The new business and marketing executive points out that it is possible to work on these contracts with leverage of up to 30 times the value of capital. This allows the investor who has R $ 1,000 invested in this type of contract, to speculate as if he had up to R $ 30 thousand.

“If a currency appreciates 10% in a week, and if you have the resource leveraged 30 times, you will either win 300% of the capital or you will zero your account”, stresses Cotoski.

With the possibility of entering and leaving at any time, the investor will have liquidity, but will also be susceptible to currency variation. It is precisely in this aspect that the executive sees the importance of one of the most liquid markets in the world for Brazil. “The currency market is very important for the country’s development because the foreigner gains strength to come to the country when he sees a structure like this well done”, concludes Cotoski.