Relocation hedge on one single currency (Chile)

[ChileNewbie]

Hi,

This forum seems geared toward day-trading and constant trade activity... can someone help a newbie in doing very basic trading? I know this is a bit off topic, just looking for suggestions on how to get started.

I have sold my house and am moving to Chile in the next few months. Right now I have all my cash in US$ in savings account. I don't want to invest in stocks, I just want to spread my risk if the US $ takes another nosedive.

When shopping for a house in Chile, I can't overlook that just 15 months ago the exchange rate was nearly 750 to 1, dropped as low as 550 to 1, and is now going back up to 640 to 1. I'm hoping it will get as high as 700 to 1 with the current improvement of the US $.

But I speculate the US $ is going to take another beating. This is just political speculation, not based on day trading analysis or anything like that.

I'm looking for advice on broker suggestions, a place I feel I can safely get money in and out of. Opening a bank account in Chile seems very difficult while still in the USA, so I'm considering just applying my desire to deversify my cash using a trade account.

Suggestions?

Thank you.

[Croesus]

Hi!

In my humble opinion, if you are moving to Chile in the next few months the best thing you can do is to save some money with the house you will buy in Chile, doing a fine transaction!

But if you have more than $300.000 and you wanna put your money in a safety place, the classical currency for this purpose is the Swiss Franc (CHF). Sell USD for CHF.

Otherwise you can start to convert a part of your funds into Pesos!

Good luck!

[ChileNewbie]

Thanks for the reply.

Not that much we have more like $80,000 total of which we intend to spend about $60,000 on the house in Chile.

Any advice on a broker?
Obviously I'm just trying to hedge against BIG changes that would ruin my plans. I'm not trying to profit off the trading, I am more concerned about loss of the US $ side.

I'm still trying to learn the basics of international exchange. What type of fees should I expect on a $10,000 trade? And I'm assuming like stocks I have dealt with in the past, that a wire transfer is the typical way to put money into an account / take it out?

Do any brokers let you take funds out in another currency? In other words...

1. I put money into a currency trading account in US$ via a wire transfer from my savings account.
2. I trade all that money for Chile Pesos when I like the rate.
3. 4 months later that is worth whatever.. and I now have an established Chile savings account.
4. Can I transfer out of my currency trading account with a wire transfer in Pesos, or would most brokers expect me to trade the Pesos for dollars?

I'm sure some of you are cringing that I'm asking such basic questions I will learn quick, so don't worry.

Thanks again.

[Croesus]

Thanks for the reply.
Never mind, friend!

Do any brokers let you take funds out in another currency?
As far as I know... no, not in Pesos at least!
But why do you wanna "trade" your funds?
Why is not enough to change your money through the Bank where you have the account?
In this case the "fee" is the change-rate they will apply to the transaction.

If you wanna "speculate" then it's a different speech!

[ChileNewbie]

Follow-up...

Someone suggested to me http://www.everbank.com/ as a place to do long-term CD's in other currencies.

Anyone have anything to say about them? Alternates?

Thanks.

[rodfx]

ChileNewbie,

Shoot me an e mail at machoraton@cablenet.com.ni

I recently moved to Chile from the U.S so I can give you a couple of pointers on Chile or forex, since that is what I am doing here. Regards

rodrigo

[ChileNewbie]

Hi RodFX - will write you. Thanks.

[ChileNewbie]

In case anyone cares. For starts we have opted to put some money into NZ Dollars in a 3-month CD. The NZ Dollars seem isolated from the big drop that the US $ did in Janary - April related to the Chile Pesos. We are only putting 15% of our cash, plus it looks like we can earn some interest on it...

Diversity is our goal, not earning profits.

Anyone suggest another currency that is easily traded / not so tied to the dollar on ups/downs?

Thanks.