How do Foreign Currency Solutions work?
Foreign exchange (FX) transactions typically involve trading one currency for another in the currency market. However, currency markets also provide investors with a range of investment opportunities, catering to different needs.
For instance, forwards and options allow investors to exchange currencies at a predetermined rate in the future and are commonly used for hedging currency risk and taking a view on currency movements.
Investors can also use foreign exchange to increase foreign asset allocation (for example, buying shares in an overseas company) or utilise tailored Foreign Currency Solutions to potentially yield higher returns.
These investments can help manage currency exposure and risk, whilst allowing investors to potentially capitalise on market fluctuations, catering to various financial objectives and risk profiles.
What we offer
We provide a wide range of Foreign Currency Solutions, including spot transactions for straightforward currency exchanges, forwards and foreign currency options.
These solutions can help generate additional yield or hedge against unwanted market volatility. Whether you need to convert currencies, manage risk, or capitalise on market opportunities, we offer the expertise and tools to meet your foreign currency investment needs.
Benefits
Leveraging foreign currency as part of your investment portfolio can improve your returns by capitalising on the dynamic nature of currency markets.
Considerations
Whilst foreign currency investing offers opportunities for profit, it also carries inherent risks. It’s important to understand the risks before investing.
Foreign Currency Solutions profile
We will work with you to assist you in choosing a foreign currency solution that aligns with your market outlook and investment goals.
Eligibility requirements
- You must be a resident in Australia
- Some Foreign Currency Solutions are only available to wholesale investors for the purposes of the Corporations Act 2001
- Minimum investment amount varies depending on transaction type. For tailored FX solutions the minimum investment amount is $50,000 AUD.
Investment type
- Spot foreign currency trading
- Forward and futures contracts and options
- Dual currency investment (DCI)
- Currency linked deposit product (CLSD)
Investment horizon
- Varies depending on product
Return profile
- Income
- Capital growth
- Hedging
To further explore Foreign Currency Solutions, you can contact your investment specialist or call our Investor Desk.
How do Dual Currency Investments (DCIs) work?
DCIs can give you the flexibility to customise the risk and return of your investment. This video provides an overview of DCIs, highlighting key features and risks.
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Talk to a specialist
To explore investment opportunities, contact your investment specialist or call our Investor Desk.
Call us on 1300 683 106
Email a specialist
Send us an email enquiry and one of our team members will get back to you.
For insights and research
Discover the latest thinking on investment insights, strategies and market commentary.
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Information correct as at January 2024.
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