If you are planning a trip overseas, investing in foreign markets, or even exploring forex trading, you may ask yourself: Can I buy foreign currency at Fidelity? Fidelity Investments is a major financial services company known for helping people with stocks, bonds, retirement accounts, and more. But when it comes to buying foreign currency, Fidelity operates a bit differently than a traditional bank or currency exchange service.
Does Fidelity Offer Physical Foreign Currency?
Well, Fidelity does not sell physical foreign currency.
If you are about to travel abroad and need cash in euros, pounds, or yen, Fidelity isn’t the right place to go. You won’t be able to walk into Fidelity and exchange your U.S. dollars for physical foreign money. Instead, you’ll need to visit a bank, use an airport currency exchange counter, or try services like Travelex, which specialize in providing physical foreign cash.
So, if your main goal is to get foreign cash for a vacation, Fidelity doesn’t provide that.
What Foreign Currency Services Does Fidelity Provide?
Even though Fidelity doesn’t handle physical foreign cash, they still offer several services related to foreign currencies. These services are mainly focused on investing, trading, and transferring money electronically. Here’s how you can work with foreign currencies at Fidelity:
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Foreign Currency Transfers
Fidelity allows you to send money electronically in foreign currencies. This is called a foreign currency transfer.
For example:
- If you have family living in Europe and want to send them euros, you can do this through Fidelity.
- Or, if you’re transferring money to a bank account you hold in another country, Fidelity can help you convert your U.S. dollars into the local currency.
These transfers are done electronically through a system called SWIFT, which is used by banks all over the world. Fidelity doesn’t charge you a fee for these transfers, but the bank receiving the money may charge a small fee.
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International Stock Trading
Are you interested in investing in companies outside the United States? Fidelity can help you trade stocks on international markets.
When you trade international stocks, you often need to work in the local currency. Fidelity takes care of converting your U.S. dollars into foreign currencies so you can invest easily. For instance:
- If you want to invest in a company based in Japan, you would need to buy its shares in Japanese yen.
- Similarly, if you’re buying shares of a company in Europe, Fidelity will handle the conversion into euros.
To start trading international stocks, you will need to sign up for Fidelity’s international trading services. Once enrolled, you can trade on over 25 global markets.
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Forex Trading (Foreign Exchange Trading)
Forex trading involves buying and selling currencies to make a profit. While Fidelity offers forex trading, it’s not as advanced as specialized forex platforms.
Here’s what you can do:
- Fidelity allows you to trade 16 currency pairs.
- A currency pair involves two currencies, like the U.S. dollar (USD) and the euro (EUR).
For example:
If you believe the U.S. dollar will get stronger compared to the euro, you could buy USD/EUR and potentially profit as the exchange rate changes.
Fidelity’s forex trading is designed for beginners or casual investors. If you are serious about forex trading and need advanced tools, other platforms like OANDA or Forex.com may be better options. How to Enable Stock Lending with Fidelity
How Do Foreign Currency Transfers Work?
If you are planning to transfer money in a foreign currency through Fidelity, here’s how it works:
- Set Up the Transfer
Log in to your Fidelity account or contact their customer service team. They’ll help you start the process of transferring money in a foreign currency.
- Choose the Currency
Pick the currency you need, such as euros, yen, or pounds. Fidelity supports many major currencies.
- Send the Money
Fidelity will convert your U.S. dollars into the foreign currency and send the money to the recipient’s bank account.
It’s important to note that while Fidelity doesn’t charge fees for this service, the receiving bank or any intermediary banks may apply their own fees.
What Currencies Can You Use with Fidelity?
Fidelity supports a range of major currencies, including:
- Euro (EUR)
- British Pound (GBP)
- Japanese Yen (JPY)
- Canadian Dollar (CAD)
- Australian Dollar (AUD)
These currencies are commonly used for international transfers, trading, and investments.
Are There Fees for Using Foreign Currency Services?
Fidelity doesn’t charge fees for foreign currency transfers or international stock trading. However, there are a few things to keep in mind:
- The bank receiving the money may charge a fee.
- Currency exchange rates can fluctuate, which means the amount you get in a foreign currency may vary slightly depending on the day or time of the transaction.
If you are unsure about any fees or rates, Fidelity’s customer service team can explain everything to you before you proceed.
Who Should Use Fidelity’s Foreign Currency Services?
Fidelity’s foreign currency services are ideal for:
- Investors: If you are interested in investing in international stocks or diversifying your portfolio, Fidelity makes it easy to trade in foreign currencies.
- People Sending Money Abroad: If you need to send money to family, friends, or businesses overseas, Fidelity’s foreign currency transfer service is simple and secure.
- Beginner Forex Traders: If you’re curious about forex trading and want to try it out on a smaller scale, Fidelity is a good starting point.
If you are traveling abroad and need physical cash, you will need to look for other options, as Fidelity doesn’t handle this.
The Bottom Line
Fidelity is a fantastic option for handling foreign currency if your needs are related to investing, trading, or transferring money electronically. They provide tools to trade international stocks, transfer money in foreign currencies, and even explore forex trading.
However, if you need physical foreign cash for travel, Fidelity isn’t the right choice. You will need to visit a bank or currency exchange service instead. Before using any foreign currency service, make sure to research fees, exchange rates, and any regulations that apply to your situation. If you are ever unsure, Fidelity customer service team is there to help guide you through the process.
