12 ways to make money on exchange rates now

When the state of the country's economy is not stable, everyone is looking for a way to preserve or even increase their capital. Some decide to put their savings in a bank at interest, while others invest money in the development of a startup. The possibility of additional earnings is also provided by fluctuations in the value of various monetary units. You will learn how to make money on exchange rates from this article. Study the features of each method to understand which one is right for you.

How to understand the specifics of making money on exchange rates: key terms

To understand how to make money on exchange rate fluctuations, it is worth first understanding what characterizes a currency as a speculative instrument. Among the main parameters are:

• Rate or quotation
  is the value of one currency in units of another. There is a direct rate, where the value of foreign money is expressed through the national currency, and an indirect rate, showing the relationship between two foreign currencies.
• Spread
  is the difference between the cost of the same currency when purchasing or selling it.
• Currency pair – currencies, one of which acts as a commodity during exchange, and the other as payment.
• Cross rate
  is a derivative quote that expresses the value of two currencies in relation to a third.
• Convertibility
  is a characteristic that indicates how freely the purchase and sale of a particular currency occurs in a country or in the world.
• Liquidity
  is related to convertibility, which determines whether a currency can be legally traded freely and is available for exchange, but specifically refers to how quickly a currency is traded. The level of liquidity is determined by how much funds speculators have and whether they want to trade. The dollar, for example, is more liquid than the British pound: buying or selling it is not difficult.

There are three groups of currencies on which you can theoretically make money by changing their exchange rates:

• Fiat
  are generally accepted monetary units used legally. They can exist both in cash and in non-cash form. They are recognized both by the specific state in which they operate and by the entire world community. Their exchange rate is largely determined by the level of GDP of the issuing country. You must pay tax on profits from trading such currencies.
• Electronic money
  is a form of existence of fiat money, invented for making online transfers in independent payment systems. They are not recognized in all countries, and are taxed only when exchanged for traditional monetary units. Moreover, their price is almost identical to the exchange value of real money.
• Cryptocurrencies
  are independent currencies not related to GDP and the government system as a whole. The quotation of cryptocurrencies in relation to each other and their value in real monetary units is determined by supply and demand.

Investments in foreign currency

When storing currency, we earn only in one direction. Her height.

When trying to play on currency fluctuations - growth and fall.

But you can invest money. And receive additional profit from investments.

Foreign currency deposits

Banks offer individuals the opportunity to open deposits in foreign currency. For a period from several months to several years.

We get the opportunity to receive double income:

• accrual of interest on deposits;
• due to changes in the exchange rate.

But there are also disadvantages in these points.

Rates on foreign currency deposits are much lower than ruble deposits. Literally several times.

The exchange rate can either strengthen or weaken. In the future, this may result in a loss in ruble equivalent.

This option is at least a little more profitable than simply storing wads of money at home behind the toilet. Some penny in the form of interest on the deposit will drip.

Opening a foreign currency deposit is a game with previously known parameters. No surprises or negative consequences. You always know how much money you will earn (in foreign currency) over a certain period of time.

The main thing is to choose a reliable bank. It is better not to chase the highest interest rates. Here safety comes first.

Eurobonds

Eurobonds or Eurobonds are debt securities denominated in dollars. Issued by the state or the largest companies: Gazprom, Lukoil, MTS, Rosneft.

Bonds are also called fixed income instruments.

Bondholders receive fixed payments (coupons) every six months. The interest rate is fixed for the entire life of the bond.

The bonds themselves resemble a bank deposit. You buy a security (open a deposit). You know in advance the profitability (interest on the deposit). At the end of the circulation period, you receive back the nominal value of the bond (or the body of the deposit).

Unlike deposits, debt securities have a number of advantages and features:

• The yield is 2-3 times higher than on foreign currency deposits.
• The maturity period varies from 1 year to 15-20 years. And throughout the entire period, the interest rate is fixed. Banks open deposits for a maximum of 2-3 years.
• You can sell at any time. Without loss of accrued (but not yet paid) interest.
• The minimum cost of one bond starts from 1 thousand dollars.

Where can I buy?

Eurobonds are traded on the stock market. To gain access, you need to enter into an agreement with a broker.

And that's all. We deposit money and earn money on foreign currency using bonds.

Articles about Eurobonds:

• Eurobonds in simple words - what they are, how much you can earn;
• 3 ways to profitably buy Eurobonds for an individual.

Foreign investments

We invest money in assets denominated in foreign currency. First of all, these are shares or real estate.

Profit is generated from incoming dividends and (or) growth in market value.

Example. Bought shares of Coca-Cola. The company pays quarterly dividends. In dollars. About 1% every 3 months. Plus, quotes increase over time. If the dollar/ruble exchange rate also increases, then we get TRIPLE PROFIT .

The value of shares of various companies ranges from a few dollars to several hundred and even thousands. Most trade in the $50-$200 range.

Minuses:

• the need to independently select profitable stocks (knowledge of assessing fundamental indicators);
• possibility of price reduction after purchase.

Pros:

• high growth potential;
• additional profit in the form of dividends (on average 2-4% per year).

Useful information: Where and how to buy shares of foreign companies

ETF and mutual fund

For beginners, instead of buying individual stocks, it is better to pay attention to collective investments. Mutual and exchange-traded funds.

The meaning of an ETF or mutual fund: all investors’ funds are collected into a common pot. This money is invested simultaneously in tens or hundreds of different companies. For relatively little money (within 1-5 thousand rubles) you get a diversified portfolio across various sectors and countries.

It is based on the fact that the stock market always grows over long periods. And with it our investments.

Cons: investing money for a short period is strictly not recommended.

Materials on the topic:

• Why buy ETF;
• Mutual Fund or ETF - which is more profitable?

Precious metals

First of all, these are gold and silver.

The cost is tied to world quotations. In dollars.

When investing money in gold, we fix the dollar price per gram of metal.

If the dollar rises (against the ruble), we make money.

Additionally, we receive protection from dollar inflation (about 2% per year). Gold and other metals are tangible goods. As prices rise due to inflation, the cost of gold will also increase.

On average, the gold rate is growing at a rate exceeding inflation. But only over long periods of time.

Over the course of several years, quotes may move up and down.

Where to buy?

1. Open an impersonal metal account (OMA) at a bank. For free.
2. Buying physical gold. In the bank. Expensive.
3. Gold ETF.

In fact, there are many more ways to invest in gold. See other options here.

Cons: unpredictability of the course behavior in the future. It may turn out that as the dollar rises against the ruble, gold prices themselves will decline.

Pros: Gold has always been a defensive asset. In times of instability, financial turmoil, crises, and wars, investors seek protection in gold. The worse the situation in the world, the more expensive gold becomes.

Saving: How to choose a profitable option for purchasing and making money on precious metals?

Pros and cons of making money on exchange rates

On the Internet you can now find a huge number of offers for making money on exchange rates. As a result, many people are thinking about mastering this method of enrichment.

It would be naive to believe that you can quickly earn a huge amount by simply exchanging one monetary unit for another. It is possible to make a profit from this, but for this you need to at least master the chosen method perfectly.

How much can you earn on the exchange rate?

The level of income in this case depends on a huge number of factors. First of all, profitability will differ when choosing one or another method of earning money. The two most profitable options at the moment are Forex and PAMM accounts.

These methods have two important characteristics: firstly, they provide a real chance to earn money, and secondly, they are available to almost everyone. Equally important, Forex and PAMM accounts do not require huge investments at the initial stage.

How to avoid being scammed

Since there are an incredible number of scammers in this area, be vigilant. They usually have very sweet, attractive and easy to follow wealth multiplication offers. Before you begin cooperation, soberly assess the situation, read reviews on the Internet and think logically. The more difficult it is for you to refuse such a tempting path, the higher the likelihood that all investments will be irretrievably lost.

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The nuances of making money on exchange rates

1. To make good money, you need to invest well. In other words, you should first collect a sufficient amount and only then start buying and selling currency. No matter how hard you try, you won’t be able to make a serious profit out of 10 dollars or euros. But if you have 10 thousand, the prospects are much greater.
2. You must have a personal computer with fast Internet. This requirement is due to the fact that new methods of making money on currencies involve working on the network. However, those who choose one of the traditional methods will also need the Internet, since with its help you can quickly learn about changes in the financial market.
3. It is worth studying the most modern methods. The main principle of how to make money on the exchange rate is clear to everyone: buy at a lower price and sell at a high price. But everything is not so simple, since banks a priori sell currency at a higher price than they buy. Accordingly, in order to make a real profit, it is necessary to master some newer methods of working with currencies. This could be, for example, making money using electronic money.

List of currencies for buying and selling

Here one could write about many currencies, but essentially only the dollar and, with some reservations, the euro are suitable. The fact is that there are very few banks that hold cash in a wide range of currencies. For example, buying the British pound or Swiss franc is not as easy as it seems. Moreover, even if they are available, the spread on them will be simply huge, and this will ruin all the efforts. There is no point in waiting for the exchange rate to change by 7-8% just to cover such costs. This is not to mention the fact that when working with the ruble, the main movements are usually provided by the ruble itself, which fell by 4% today and grew by 5% tomorrow. In general, only the dollar and the euro remain, if the difference between the purchase and sale prices is adequate.

Which currency to choose to make money on exchange rate fluctuations

The value of any money changes over time. However, there are not so many options in which currency you can invest in to earn money:

• dollars;
• Euro;
• Swiss frank;
• British pound;
• cryptocurrencies.

Experts advise never to keep all your savings in one currency. It will be much more effective and reliable to assemble a financial portfolio from several stable and freely convertible monetary units. At the moment, it is recommended to choose at least three: dollars, euros and Chinese yuan. At the same time, it is important to constantly monitor the situation on the foreign exchange market in order to regulate the content of your portfolio.

Who needs online currency exchange

Anyone who makes money via the Internet and uses electronic money. It is one thing to receive payment for your services to your wallet. Another is to convert this money into real currency.

If you choose the wrong intermediary, you will lose money on inflated interest rates. Or even worse - you will run into a fraudulent site, and your hard-earned money will disappear in an unknown direction. Therefore, the choice of an exchange partner should be taken as responsibly as possible.

Regulars of currency exchange offices on the Internet:

• designers;
• copywriters;
• editors;
• programmers;
• translators;
• online entrepreneurs.

And not only these categories of people may need online conversion services. Many people have Yandex wallets and WebMoney. Sometimes people deposit money into wallets for some purpose, and then are faced with the need to withdraw it. It is in such cases that exchangers are needed.

With increasing interest in cryptocurrencies, the relevance of OP has increased sharply. People sell goods and services for bitcoins or make money on exchange transactions, and then face the need to convert crypto coins into rubles (dollars, hryvnia).

Online converters are practically the only way out in this situation, since bitcoins, dogecoins, and ethers are not accepted by regular banks.

How to buy currency at the same price as banks

You can make money on currency transactions in different ways:

• by entering into an agreement with a broker who will, on your instructions, sell and buy money on the stock exchange, as is usually the case with securities;
• purchasing currency at a more favorable rate than in a bank (either also on the stock exchange through a broker, or using a mobile application).

The exchange is exactly the place where the exchange rate is formed, which all financial organizations subsequently focus on. However, banks always add a commission to the original cost. This helps them not only avoid risks associated with price fluctuations, but also make money. In this regard, investors have a question: is it possible to purchase currency cheaper than what the bank offers, and not spend money on paying commissions?

To do this, you should learn how to work with the stock exchange. There, the currency is always sold at a more favorable rate, since the price does not include additional fees. In addition, it is possible to track changes in the exchange rate and carry out a transaction at the most opportune moment.

Passive storage

The meaning is simple. Buy currency. We are waiting for the exchange rate to increase. We sell at a higher price. There is a profit. Or we just hold it until better times.

Where can you buy currency?

Exchangers in banks

Probably the most popular option among Russians. But popular does not mean the most profitable.

Each bank has its own rate. Which may differ by a few percent from the competitor across the street. We don’t go to the nearest Sberbank to buy currency, but use the services for monitoring bank exchange rates to search.

This will save you money on your purchase. From several tens of kopecks to rubles, for every dollar purchased.

The main disadvantage. The bank's selling rate will always be higher than that officially established by the Central Bank.

Currency market

This is not Forex (we'll talk about it below). And buying currency on the Moscow Exchange. At a fair exchange rate.

Exchangers in banks focus specifically on him. Setting your own rates for buying and selling. Don’t forget to add your margin on top in the form of a few percent.

By entering directly into the foreign exchange market, we exclude “parasitic banks” from the chain. We buy currency even cheaper.

Minuses:

• You must enter into an agreement with a broker to gain access to trading.
• The minimum currency purchase amount is 1 lot. Or 1000 U.E. Dollars or euros.

Information on the topic: How to buy currency on the stock exchange - a complete algorithm of actions

Buying currency online

Here we are talking mainly about electronic dollar wallets. Paypal, WMZ, Perfect Money, Advanced Cash, Payeer, Skrill.

We need to replenish our currency wallet, contact an electronic exchanger. You can make an instant exchange from a bank card or from ruble wallets.

There are a million currency exchange services online. To find the best rate, we use exchanger monitoring.

The most popular is bestchange.ru. It tracks only reliable and verified services. All rubbish and fly-by-night sites are not included in the rating.

Pros: you can buy currency even at a rate lower than the official one.

Cons: for unpopular destinations - the exchange rate is very high.

For information: 3 ways to profitably buy or sell dollars and euros

The options described above are aimed at long-term storage. You can earn money only with a significant increase in the exchange rate. 15-20 percent. Strong growth in a short time is a rare phenomenon. Therefore, we buy and forget for several months or years.

How to avoid encountering scammers

Those who want to make money on exchange rates risk encountering scammers in the course of their activities. You can deceive a client in different ways: by issuing counterfeit bills, stealing bank card details, etc. What can you do to protect yourself from such fraud? Adhere to the following rules:

• cooperate only with those companies, brokers and online platforms in which you are confident;
• check the accuracy of the information provided, especially if the offer seems too profitable;>
• do not give anyone passwords, codes or other data necessary to use your accounts;
• independently monitor and evaluate changes in the financial market.

If you need to exchange currency, you should wait until the cost is favorable to you. But you shouldn’t just play with quotes for several reasons:

1. Firstly, when trading on the exchange, there is also a commission for withdrawing funds from the account. Even if the transactions bring you profit, you will not be able to withdraw it completely.
2. Secondly, beginners often make decisions about currency exchange thoughtlessly. A couple of unjustified investments - and you can lose your capital.
3. Thirdly, trading on the stock exchange cannot be a hobby. Only people who understand the numerous principles of the financial market are successful in this area. To make the right decisions in terms of buying and selling currencies, you need information, the search and analysis of which takes time. A person working in another profession will miss something important.

In any case, you should always remember the risks:

• Decide what percentage of the invested amount you are willing to lose if you make the wrong decision. When the maximum point has been passed, do not be afraid to admit your mistake and stop the operation.
• Do not make a transaction for the full amount if you have doubts that the investment will be profitable. It is better to invest only part of the funds: then the risk of losses will be less due to its leveling across two differently directed positions.

Exchanges

But you should go to the stock exchanges only if you intend to seriously engage in such activities. They will provide training there, most likely for a fee, with a guarantee that you will “work it out.”

The most striking example is Forex. They will find you and invite you to the office for a presentation, all you have to do is create a demo account on their website. Forex has been helping the middle class become closer to the rich since the 90s. Any currencies, precious stones, metals, oil, gas and shares of enterprises are freely available. The principle of operation remains unchanged, only the scale is different.

What is important to know about inflation when making money on exchange rates

Inflation is one of the most important factors that must be taken into account when planning foreign exchange transactions. Without a clear understanding of what it is, you won’t be able to make money on exchange rates. A simple example: a year ago you bought 100 dollars, and now you sold them. Since the exchange rate has become more favorable, the transaction seems profitable. However, if you remember that the USA also has inflation, it turns out that you have lost about 5% of the original amount. And although technically you now own a large amount of the national currency, the rise of the dollar is actually a fall of the ruble, so the value of your capital remains approximately the same as a year ago.

Speculators enter into transactions on a different principle: they wait until the currency becomes cheaper, buy it, and then sell it when it rises. The key to earning money in this case is the increase in value. If we talk about Forex, there is an opportunity to make money both on increasing and decreasing prices.

If you really want to profitably invest your savings, it is better to purchase securities. The income from them, although small, is stable, and you definitely won’t lose your savings.

We change currency without leaving home

So, everyone can exchange dollars, rubles, euros, bitcoins, litecoins and other currencies (fiat and crypto) without leaving home. Any device with Internet access gives its owner unlimited opportunities for transactions with electronic wallets, bank and stock exchange accounts.

Almost any popular currency can be exchanged for another. Even Yuan and Yen. To do this, just go to the website of the online exchanger, enter money into the system in any way convenient for you and initiate the exchange operation.

Exchange offices (EOs) accept not only rubles, dollars and crypto coins, but also the currencies of electronic systems - Qiwi, YandexMoney, WebMoney, Perfect Money and many others.

Example

I have a friend named Anton . He is a sports analyst, or rather, a professional player in bookmakers. Makes money by selling predictions for football matches.

Payments are received via electronic wallets. To transfer money into “real” currency, he uses exchangers. He says that sometimes this is the most profitable way to cash out your earnings. And sometimes the only one.

An important point: exchangers take a percentage for each transaction. Sometimes this figure reaches impressive numbers.

Choose an exchanger with the most favorable rate for your currency pair

For example, several years ago I used exchangers to convert WMR (the currency of the WebMoney system) into regular rubles. For each exchange, I was charged 3-4%, depending on the amount and conditions of a particular item.

This is a lot, considering that I made fairly large transfers several times a month. So, first of all, service owners make money from exchange manipulations.

There are other nuances that beginners should know:

• some resources posing as exchangers are actually fraudulent one-day sites;
• If you want to benefit from foreign exchange transactions, use the services of trusted companies;
• look for a favorable rate using special monitoring that tracks quotes at exchange offices in real time;
• Services do not always work quickly - it happens that money arrives in the account after 12-48 hours.

How to choose a reliable and fast resource? How to use this site correctly? How do exchangers differ from each other? Who can't do without such services? You will receive answers to these and other questions in the following sections.

Fraudulent schemes

Those hungry for easy money are a goldmine for swindlers. They offer a variety of methods to get rich quickly with minimal resources. Most of them are tied to a decoy exchanger.

1. The most favorable conditions. In a newsletter or contextual advertising, information appears about a new super profitable project, where tariffs are almost two times lower than in the bank. Reckless people will immediately run to buy foreign currency, but after transferring the money they will either be blacklisted or receive an excuse for why they should wait: server failures, errors, overloads, etc.
2. "Chains of Exchange". This path is more complicated: it is proposed to carry out exchange transactions in several web points in a row, including foreign ones. The first couple of transactions may even be successful, but at the end of the chain there will definitely be a “black hole”, as in the first option. And there is no going back.
3. Viruses. Under the pretext of “downloading a free auto-trader” or software for monitoring, bots and other interesting things, they offer viral files that can damage your device and lead to trouble. Before using such an invitation, install a high-quality antivirus and read reviews, paying attention to negative ones.

Prospects for foreign exchange earnings

The investor must have free capital to invest in the business. It’s better not to risk large sums at once, because beginners, without the proper experience and knowledge, will go broke. But this is not the time to give up. Buy currency, sell, reflecting profits in accounting. Also, do not forget about losses - also include them in the report.

The course is changing. In the long term it will continue to grow. If you urgently need money and have no choice but to sell the currency, you may encounter a sharp change in tariffs and unfavorable rates. No one guarantees profit in exchange transactions. An entrepreneur must act at his own risk.

A novice investor should purchase a certain amount of currency at a time when, in accordance with the exchange rate for this type of funds, a low price is set. This will allow you to wait for the moment when the rate takes off and make a profitable transaction.

For the risky and desperate

In an ideal world I wish this section didn't exist. Probably because I'm too old a conservative investor.

▍7. FOREX

I wrote expert texts about finance for several publications and companies from the top 5 financial market of Russia and always in the technical specifications for the text there was a request “just not Forex”, “don’t mention Forex”, etc.
On the one hand, technical specifications are always written by unhappy marketers who fear for the company’s reputation and don’t go into much detail, on the other hand, I perfectly understand the reasons for such a common clause in assignments. But since RUVDS does not write any technical specifications and generally allows authors to speak out quite democratically, I will write about FOREX as it is and why this happened. “Forex (from English - FOReign EXchange - “foreign exchange”) is a market for international currency exchange based on freely formed (without restrictions) quotes (offered prices) based on demand for currency and, accordingly, supply. Market participants are various types of banks (central banks, commercial), brokers and dealers, insurance and pension organizations and others (including private investors/traders).” This is the classic, precise and comprehensive definition of FOREX that can be found on the Internet or in a textbook. In human terms, this is an over-the-counter market without a physical center and trading platform, where banks, companies, financial agents and even private investors trade currencies.

Trading on FOREX is banal and boring: a trader (that is, you or any other person) works with charts of traded currency pairs in the same absolutely legal and wonderful MetaTrader, closes transactions, fixes profit or loss. 1 lot for the Forex market is equal to 100 thousand units of the base currency. The minimum lot size that can be traded on Forex is 0.1 lot or 10 thousand units of the base currency, however, your broker may have its own conditions and often you can start trading with $1 or $10. Since no one is interested in such amounts, the broker provides you with leverage (leverage) and you with your $10 turn into a dude with $10,000, for example (leverage 1:1000). If the deal is successful, you will make good money, and the broker will receive a commission; if not, you will lose your $10 asset (or whatever you have).

Such a simple scheme, weak regulation and the over-the-counter nature of trading could not help but attract scammers of all stripes. Among FOREX brokers and dealers, most are fly-by-night companies, home-grown financial consultants. networkers and other evil spirits. FOREX itself is more like a gambling casino, but with the participation of this entire contingent, it’s just a den of robbers. Schemes of involvement in pyramid schemes and stories with high leverage are very advanced; even an experienced investor can get caught.

Therefore, my advice: it is better to avoid FOREX, but if you decide to play with leverage (and I emphasize - this is not a smart investment, but almost a gamble), choose certified brokers and dealers who have been in the market for more than 10 years. They have at least passed all the legislative filters and learned to work in the legal field (well, almost).

▍8. PAMM accounts

At this point, you can just go to point 9 and dream, because I myself don’t trust PAMM accounts, I don’t like them and I would never contact them myself.
However, they are worth mentioning, if only so that you, my novice investor friend, when you hear the word “PAMM accounts,” will remember this article and move on. Past. So, PAMM accounts are accounts that are created by a broker, bringing together you, other investors and a certain manager. The manager, an experienced investor and analyst (in a good situation), carefully makes transactions with currency, and you all follow his example: he sold 50% of his assets and you, he bought yuan for everything and you (more precisely, not you, but most often an automated trading terminal)… etc. For successful “moves” he receives a commission and makes money from it. Naturally, this is a place for various adventures and dishonest moves, although at first glance it seems like a sacred task for the manager to trade carefully and profitably. I won’t write about the pros and cons, just be careful here and don’t get into trouble. Although, if you wish, you can find many rave reviews about this trading strategy in the foreign exchange market. Until the first time.