How to Sell Your Foreign Currency

Written by nicholas smith
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How to Sell Your Foreign Currency
Individuals may sell foreign currency through several online brokers. (globe with currency symbols image by patrimonio designs from Fotolia.com)

Foreign currency holders who wish to sell for a profit may do so through the foreign exchange market. According to the Federal Reserve Bank of New York, individuals may sell currency through several currency exchange brokers in the retail market. To earn the best possible profit on the sale, traders should seek to "buy low, sell high," that is, sell the currency at a higher price point than the trader paid for the currency. Unlike securities markets, the foreign exchange market is available 24 hours a day.

Skill level:
Easy

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Instructions

  1. 1

    Search for a suitable foreign exchange broker. Several options are FOREX (www.forex.com), Oanda (fxtrade.oanda.com) and Citi (www.citifxpro.com).>

  2. 2

    Learn about Foreign Exchange Market exchange rates and trading rules before engaging in any real time transactions. Exchange rates are the rates by which one currency is exchanged for another. According to FinancialWeb, these rates are quoted as "currency pairs," such as EUR/USD (the Euro paired with the US Dollar). Traders should seek the lowest exchange rate possible. Review all relevant trading rules and understand fee structures by reviewing information available on each broker's website.

  3. 3
  4. 4

    Engage in live trading once you are comfortable with how the foreign exchange market works. Different brokers have different minimum capital requirements, or minimum amounts that traders must deposit in their accounts. Common funding methods include deposits through credit/debit cards, bank wire, paper checks, PayPal, and other options. Consult your broker for specific deposit methods.

Tips and warnings

  • The Foreign Exchange market is volatile and may carry significant risk of loss. Those wishing to engage in foreign currency trading should consult with a financial adviser to understand all of the risks of participating in the market.

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