About Forex Investment Accounts

Video Transcript

"Hi, there. I'm Cathy Pareto, the founder of Cathy Pareto and Associates, certified financial planner, here in Miami, Florida. In this clip, we're going to be talking about Forex investments. Now, what is Forex? It's basically just short for foreign exchange. There's an entire marketplace out there where investors can trade currencies as an alternative to, say, maybe stocks. And currencies are constantly trading around the world. Now, how can you do this? You can...you can do this in one of two ways. You can do this with a Forex account yourself and trade it yourself, which might be a little risky if you don't have experience. Or you can have a Forex broker do it for you. Basically, you can buy currencies from around the world -- the euro, the yen, et cetera. And it might be good, for example, if you think that the dollar is going to be decreasing in value, you might want to pick up some foreign currencies to hedge against any U.S. investments that you have. Now, an easy way to do this bypassing a Forex account or a Forex broker is through currency exchange traded funds or exchange traded notes, which can be easily done at a discount brokerage for a nominal cost transaction fee. You can pick up an entire basket of foreign currencies in one fell swoop with one purchase. And that's a little bit on Forex, and this has been Cathy Pareto in Miami."