The foreign exchange market can help you add diversity to your investments. Not all foreign investments are a good opportunity, so it’s crucial to make smart decisions to help secure a bright financial future for yourself.
Invest in an Overseas Property
Buying an investment property out-of-country can be a great source of passive income, and the rent you collect can help cover any costs associated with property upkeep. In addition, a foreign property can be an excellent long-term investment, especially in an emerging market, and is not as susceptible to the fluctuations that occur in domestic housing markets.
Invest in Hard Assets
A number of foreign hard assets are worth investing in, from farmland and gold to jewellery, collectibles, vehicles and art. These type of foreign investments can help diversify your portfolio without too much risk. Hard assets are often considered sensible investments because they can be used as a hedge against inflation.
Invest in Different Currencies
With some dedicated research, you can use the foreign exchange market to capitalize on sudden currency fluctuations by investing in companies that are priced in foreign currencies. An advantage of this strategy is that you can diversify your portfolio by investing in more than one economy, so your overall investments can grow — even if your local economy takes a hit.
There are a number of ways to capitalize on the foreign exchange market to diversify your portfolio. Just remember that banks often add a significant fee on foreign currency payments, so it’s important to research different currency options.
Hudson’s Bay Financial Services has teamed up with OFX to help you transfer money quickly, securely and affordably. OFX is a leading currency exchange service that combines a streamlined digital experience with expert personalized service. They have no transfer fees on transactions over $10,000 CAD, and you can earn up to 5,000 Hudson’s Bay Rewards points on transactions over $21,000 CAD.1
1 Earn 2,000 Hudson’s Bay Rewards points on currency transactions of $2,000 to $9,999 CAD; 3,000 Rewards points on currency transactions of $10,000 to $15,999 CAD; 4,000 Rewards points on currency transactions of $16,000 to $20,999 CAD and 5,000 Rewards points on currency transactions of $21,000 CAD or more.
Foreign exchange services are provided, and money transfers are arranged for, by OFX Limited. OFX is registered with FINTRAC (registration number M08560392).
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