Trading Euros is becoming increasingly popular with the availability of computer technology and software designed for this purpose. The Euro is the official currency of the European Union (EU). Euros can be traded in a manner similar to stocks, but in an unregulated market. Paper Euros can also be purchased at most banks, including through online financial institutions. Euros provide a hedge against declines in the U.S. dollar and other currencies. Additionally, business travelers might want to purchase Euros before departure for a European trip.

As with any market, the value of currency fluctuates. Trading Euros, therefore, comes with a certain level of risk. Fortunately, bank accounts are available that offer FDIC insurance to help minimize that risk. Market trading does not offer FDIC protection.

Consider the following when learning the Euro basics:

1. Calculate the current Euro exchange rate before trading currency.

2. Use a currency trading service to start trading Euros.

3. Buy Euro currency online, and have it shipped to your address for a small fee.

Action Steps
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Check the current exchange rate before buying Euros to get the most for your money

The Euro currency exchange rate changes daily. Before purchasing Euros, therefore, look at current and historic exchange rates. Calculators are freely available, and will help you get the best Euro price for your dollar.

I recommend: XE's Universal Currency Converter is a free currency exchange rate calculator that allows you to calculate the values of 85 different currencies, including Euros. X-Rates also provides a free currency converter and allows you to graph the history of two currencies you wish to exchange.

Speculate on currency exchange rates through Euro trading

You can trade currencies like you trade stocks on the stock exchange. Online trading services allow you to buy Euros and other foreign currencies without taking physical possession. Trading currencies is a good way to diversify and protect your money against inflation.

I recommend: FOREX.com is a currency trading service that charges no commission fees. Register for a free practice account to learn how to buy Euros in the market. Interactive Brokers allows you to trade Euros and 12 other international currencies. Check out the company's software demo to learn more.

Buy Euros using only your computer and shipping address

Buying Euros before you travel will save you time, and give you one less thing to think about on your business trip. Purchasing in advance of your trip will also allow you to capitalize on favorable exchange rates.

I recommend: Wells Fargo allows you to buy Euros over the Internet for a fee. The bank also charges a flat rate shipping fee for all orders. EverBank offers interest bearing foreign currency accounts, including certificates of deposit. Their WorldCurrency Access Deposit Account allows you to access cash, as you would from a money market account.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember that not all European nations use the Euro as their currency. Before you buy Euros, make sure you will be able to use them in your destination country.

Buying foreign currency, such as the Euro, is just one of many ways to invest your money on a global scale. If you're an international investor and the dollar is weak and the Euro is strong, buying Euros can be a smart choice.

Buying Euros in the United States may seem like a tricky task, but because the Euro is the European single currency, it's standard and easy to purchase around the world.

When buying Euros, make sure you keep the following things in mind:

1. Check out the recent Euro exchange rate before buying to know generally how much the Euro is worth.
2. Find international banks or foreign currency accounts with American banks to buy Euros through an institution.
3. Practice trading Euros with a trial account online.
4. Get souvenir Euro currency from a souvenir seller rather than through a trader or bank.

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Use a real-time Euro exchange rate when you buy

Euro currency exchange rates fluctuate regularly, but you can track real-time updates to the exchange rates between all types of currency using an online currency converter.

I recommend: Currency converters are easy to locate online, but choose your features wisely, such as real-time updates and advanced comparison features for a more accurate estimate of what your dollar will buy in Euro trading.

Banks can make Euro trading simpler

If you're uncertain about buying Euros on your own, buy Euro currency through an international bank or through foreign currency savings accounts with a U.S. bank to have institutional support and assistance.

I recommend: Any established international bank will be able to offer currency exchange options, particularly Euro currency exchange, for their accounts. Other alternatives to buying Euros directly include international savings bonds, redeemable in foreign currencies, and world currency access savings accounts.

Ease into Euro trading with a practice session

Trading Euros or any currency can be complicated, but you can practice trading currency with an online trial program, similar to a stock market simulation.

I recommend: Set up a free trial practice account with Forex before you start trading with real currency. Some trading companies market their practice program more like a game, like Oanda's FXGame, which is also free to use.

Buy Euros for souvenirs through a retailer, not the bank

If you're a collector looking for mint quality Euro coins or bills, buying Euros may be easiest and most satisfying through a souvenir money seller.

I recommend: Don't bother with currency exchange rates and trying to acquire foreign currency in the United States if what you want is a book of every Euro coin. Shop with a souvenir currency seller to get mint condition Euro currency of the coins and banknotes that you want.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Realize that trading currency and investing in currency are different. You will be charged a fee to exchange or trade currency, including trading Euros, and will make money only if you're trading from a stronger currency to a weaker one. If you're planning to purchase a stronger currency, you'll want to make it a long-term investment.

Since the euro's introduction to world financial markets in 1999 as an accounting currency and its launch as coins and banknotes in 2002, euro currency is estimated to affect approximately 500 million people worldwide. This means it is increasingly important for your business to be up-to-date with exchange rate and trading information and trends.

Whether you are interested in understanding how to buy euros, where to buy euros or trading euros, your business should not only understand euro basics but news and trends as well. Before you buy euro currency or use euros in your international business transactions, consider the following ways to stay current with euro news and trends:

1. Obtain information and tips about European single currency online.

2. Be knowledgeable about news items concerning euro currency, euro currency exchange and trading.

3. Stay up-to-date about euro financial trends with online resources.

Action Steps
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Learn about euro currency and euro trading information and tips online

Obtain information about euro dollars and buying euros by accessing online resources. If your business works with companies overseas in the euro area it is critical you stay up-to-date on information concerning the euro. Many websites also provide forums where you can receive financial advice.

I recommend: Visit The Treasury to obtain information concerning businesses that use euro notes and coins. The website offers fact sheets, case studies, regional advice and information about cross-border payments. Daily FX offers a forum where you can sign up and interact with others to receive important trading tips on a weekly basis.

Keep up with online news items concerning trading euros, euro exchange rate and euro FX

Realizing how domestic and international news sources view buying euros in the US as well as trading and doing business with euros is vital to understanding the whole financial picture. Whether your business regularly or occasionally deals with euro currency, you and your employees should have an accurate grasp of euro news and information. Newspapers and financial firms are good sources for obtaining this information online.

I recommend: Take a look at a New York Times article focusing on countries rethinking using the euro after initially choosing not to do so. Forex Capital Markets offers a currency forecast, and CXO Advisory Group provides information about the dollar-euro exchange rate and U.S. stocks.

Understand euro trends and obtain trading tips online

Learning about euro currency and trading trends is important for your business to stay on top of financial markets within a changing international environment. Understanding such trending data will help your business plan for the future and minimize potential risks. Many financial websites provide this information online and are easily accessible.

I recommend: Read a speech about the international role and trends of the euro in the changing financial environment provided by the European Central Bank. Action Forex provides information about trends and opportunities concerning the euro.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you buy euros for trading it is important to realize that euro currency trading is not regulated and is not controlled by a central governing body. This means there is no clearinghouse to guarantee trades and no arbitration panel to handle disputes. Because of this it is beneficial to do business only with National Futures Association members, as they are required to undergo binding arbitration in the event of a dispute.

The euro is one of the world's most important currencies. Although the dollar has been weaker than the euro for a number of years, changes in the economy have nudged toward a more favorable exchange rate. Whether you sell products overseas, have partners abroad or are considering investing in the euro by way of the foreign exchange market, knowing key terms will help you understand the European economy and make better-informed financial decisions.

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Forex

An abbreviation for 'foreign exchange,' the term foreign also refers to the foreign exchange market. The forex market oversees the trade for trillions of dollars each year, and it's the place that determines the euro-to-dollar exchange rate.

I recommend: Learn more about the forex market and its relationship with the euro at Federal Reserve Bank of New York.

Euribor

Much like the federal funds rate in the United States, the Euribor, or Euro interbank offer rate, is the interest rate at which European banks loan each other money. The rate is an important indicator of European economic health and the strength of the Euro.

I recommend: Read the entry on the Euribor at Investopedia, then head to Euribor for more detailed information and historical data.

Eurozone

The Eurozone is the collection of countries within the European Union (EU) that uses the euro as its currency. Although some people think all of the EU member states use the euro, they don't; only 16 do. The Eurozone is also a type of economic and monetary union, or EMU.

I recommend: GoCurrency.com (PDF) has a primer on the euro and the Eurozone.

Maastricht criteria

In order for a European country to adopt the euro as its official currency, it must meet a strict set of criteria set forth by the Treaty on European Union. Established in 1992, these criteria, known as the Maastricht criteria, are responsible for ensuring that each member of the Eurozone is economically stable.

I recommend: You can find out more about the Maastricht criteria and the euro itself on the currency's homepage, hosted on the European Commission.

Anchor currency

Some countries around the world decided to peg their exchange rates to that of the euro, making it an anchor currency. The U.S. dollar is the world's most important anchor and reserve currency, but the euro is not far behind.

I recommend: Germany's Bundesbank, or federal bank, has published a short but informative article on the euro's growing role as an international anchor currency.

Reserve currency

A reserve currency is one in which foreign central banks hold their foreign exchange reserves. In simpler terms, it is essentially an international standard currency. As of 2009, the U.S. dollar is the world's most commonly held reserve currency, but the euro is right behind.

I recommend: Portfolio.com offers an article about the euro's rising prominence as a reserve currency.