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If you want to hold foreign currency, is it best go to money exchange shop or Forex?

Say I'm Japanese, and I think US Dollar would be a good investment, and I want to hold the currency for 3 years, so should I go to local money exhanges booth, i.e. buy $10,000 or buy USD/JPY $10,000 in Forex? 10 pts. for good or detailed answer.

Public Response to If you want to hold foreign currency, is it best go to money exchange shop or Forex?

  1. Definitely Forex. Basically you cut out the "money broker" fees. The quotes is easily 200 points above the bid and offer. The best way I think is to open a leverage margin account with a bank that also have a Foreign term deposit acct. Thus with Forex account you enjoy spot rates.
  2. Even more important than eliminating fees and getting a better exchange rate is the fact that you have the power of leverage when trading Forex. You can get $10,000 USD at the Money exchange shop for 1,173,064.69 JPY. OR With 1,173,064.69 JPY in the Forex market you could control over $4,000,000 USD. Now don't run off and do that right now! There are risks involved and you could certainly lose money if not properly protected through a hedging strategy or some oher such risk reducing tactic. Paul pupp52@yahoo.com