Merryn's Blog

Want to buy the euro while it's cheap? Here's how

A new online bank account lets you hold 24 different currencies. Ideal if you think you should be holding some euros, says Merryn Somerset Webb.


The euro is down 8% against the pound this year alone. That's made a good many people anyone thinking they might go on holiday in Europe, or perhaps buy a house in Europe soon-ish, for example - feel like they would like to hold some euros.

But if you aren't planning on spending the euros immediately, what's the best way to hold them? Mattresses aren't a long term solution, and currency cards can't take very large amounts of money. Foreign currency accounts have long been a pretty clunky option in the UK exchange rates are generally pretty bad; the accounts don't come cheap (think monthly fees); and the range of currencies can be limited (Barclays offers only euro, sterling and dollar accounts, for example).

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

I'm pleased then to set that Caxton FX has now launched its own currency account. This is a simple online bank account inside which you can hold 24 different currencies for as long as you like.

You go online (24/7), open an account, choose your currency, buy it (Caxton's rates aren't the absolute best in the market, but they are good and they are certainly better than those from the big banks) and that's it. Job done.

Advertisement - Article continues below

You won't get interest, but these days that's no big deal: you aren't going to get much anywhere else either. You also won't get charged for the account itself only for any transfers you might make from it.

So if you want euros, it might be a good place to start looking.

Me, I'm thinking of Danish kroners. I'm going to Denmark in the summer, and I'm not 100% sure that the Danish central bank can hang on to its peg with the euro until then. It might be a long standing and politically important peg but it is forcing Denmark into something of a monetary corner at the moment. If it breaks, the kroner will soar. Good reason for me to lock in the price of my holiday money right now.




The currencies to bet on this year

The US dollar could be set to weaken this year, while the euro, Canadian dollar and the Swiss franc could be good bets for optimistic traders.
17 Jan 2020

Welcome to Currency Corner – your weekly guide to the world’s biggest market

Forex is by far and away the biggest market in the world, with an average daily trading volume of over $5trn per day. Here, Dominic Frisby looks at th…
3 May 2019

The nature of money

The best currencies are based on a strong democracy, strong institutions and a firm attachment to both the rule of law and the protection of private p…
28 Feb 2019
Personal finance

Are packaged bank accounts worth paying for?

Packaged bank accounts can be very convenient, but do your sums carefully to make sure you're getting your money's worth.
17 Sep 2019

Most Popular

House prices

The biggest risk facing the UK housing market right now

For house prices to stagnate or even fall would be healthy for the property market, says John Stepek. But there is a distinct danger that isn't going …
17 Feb 2020

The euro’s slide against the US dollar looks set to continue

The euro has been in a bear market against the US dollar for two years now. And on a broader scale since 2008. A decline like that is telling us somet…
19 Feb 2020
Share tips

Three overlooked stocks to buy now

Each week, a professional investor tells us where he’d put his money. This week: Joe Bauernfreund, portfolio manager at the AVI Global Trust, highligh…
17 Feb 2020

Why investors shouldn’t overlook Europe

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, tackles investor questions around Europe’s economic outlook and the conseq…
6 Nov 2019