Can you open a Fidelity foreign currency account?

If you’re looking to manage money in multiple currencies, you might be wondering if you can open a Fidelity foreign currency account. While Fidelity offers a range of global financial services, it doesn’t provide a traditional multi-currency account.

This helpful guide will provide a detailed answer to the question, “Can I hold foreign currency in my Fidelity account?” and unpack the foreign currency services Fidelity does and doesn’t offer.

We’ll also take a look at alternatives, such as Wise, which offers fast transfers and low fees. Let’s dive in!

What is a foreign currency account?

A foreign currency account, also known as a multi-currency account, allows you to hold multiple currencies other than the primary currency in the country where you live. For example, a US foreign currency account would allow you to use currencies other than USD.

There are many different types of foreign currency accounts, which can make it tough to decide what type of product is right for you. Some of these accounts are focused on saving and investing. Others make it easy to engage in day-to-day transactions by providing features like mobile account access and linked payment cards.

A foreign currency account can help you avoid repeated conversion fees, which can eat away at your cash. These types of accounts may also help you hedge against exchange rate fluctuations. Some institutions even let you earn interest on your foreign currency balances.

Does Fidelity offer foreign currency accounts?

The short answer is no — Fidelity doesn’t offer traditional foreign or multi-currency accounts. You can’t open an account with them that allows you to hold balances in multiple currencies like you would with some international or specialized banks.

However, Fidelity does offer some foreign currency services that may fit your needs. Many of these services are geared toward investors and global asset management. They include:=

• foreign currency trading (via forex)
• international stock trading
• sending foreign wire transfers

For many people, the purpose of opening a foreign currency account is to facilitate international transfers while avoiding the high fees associated with wires.

Since Fidelity doesn’t offer traditional multi-currency accounts, your funds will still be held in USD. This means a conversion would occur anytime you arranged a wire transfer.

The good news is that there are plenty of other options out there. You can look for other institutions that offer foreign currency accounts or try a peer-to-peer app.

Before we dig into those alternative options, however, let’s unpack the foreign currency services that Fidelity does offer.

Fidelity foreign currency services

Fidelity has a global presence and facilitates various international financial activities, including currency trading, stock trading, and wire transfers.

With a Fidelity brokerage account, you can trade in 25 countries and exchange between 16 currencies, which include the following¹:

• Australian dollar
• British pound
• Canadian dollar
• Danish krone
• Euro
• Hong Kong dollar
• Japanese yen
• Mexican peso
• New Zealand dollar
• Norwegian krone
• Polish zloty
• Singapore dollar
• South African rand
• Swedish krona
• Swiss franc
• US dollar

Here’s a closer look at some notable Fidelity foreign currency services:

Foreign currency trading

Fidelity offers foreign exchange (Forex) trading, which allows you to buy and sell currency pairs such as EUR/USD or USD/JPY. This is primarily geared toward active traders or investors, not people who simply want to hold foreign currencies in their accounts.

To engage in currency trading, you’ll need to first create a Fidelity brokerage account. Once your account is approved and you add funds to it, you can speculate on currency movements or hedge exposure.

🚨 Keep in mind that this is an investment tool, not a way to maintain multi-currency balances.

In other words, you can execute trades in foreign currencies. Once the trade is complete, you can choose to settle in the local currency or USD. However, funds that are added back to your account will typically be converted to USD.

International stock trading

If you’re interested in investing in companies listed on global exchanges, Fidelity makes it possible to trade international stocks in their local currencies.

You have the option to buy stocks in over 25 countries and convert funds to the prevailing exchange rate.¹ However, you still won’t hold local currencies. Fidelity handles the conversion automatically.

Let’s say you want to invest in a company listed on the London Stock Exchange. Fidelity will handle the GBP to USD conversion behind the scenes. Your account balance, trade confirmations, and reports will all be in USD.

Foreign wire transfers

Fidelity allows you to send wire transfers in foreign currencies, which can be useful for international transactions like paying overseas tuition or making a payment on a foreign property.

Fidelity never charges a fee for domestic or international wire transfers. However, it does warn that the receiving institution may add a fee.

Fidelity has a daily limit of 100,000 USD on electronic fund transfer withdrawals and 250,000 USD on electronic deposits. Bank wires are subject to a 1 million USD daily limit.¹

While Fidelity facilitates foreign transfers, you can’t receive or hold funds in foreign currencies — transfers are always converted to the local currency.

You must call Fidelity to initiate a foreign wire.

Which US banks offer multi-currency accounts?

If you’re looking for a true foreign currency account, you’ll need to look beyond Fidelity.

Foreign currency accounts are a rarity in the US, but there are a few workarounds offered by major US institutions, including HSBC, EverBank, and Citibank.

Here are their offerings at a glance:

While HSBC USA doesn’t offer foreign currency accounts, you may be able to select a country of your choice and open an account in that currency. However, you’ll likely need proof of address showing that you spend part of the year in that country. This workaround can be complicated, and it comes with high fees.

Alternatively, you can try opening an HSBC expat account. As the name suggests, this service is only available to expats. Accounts come with strict requirements, including a 79,000 USD minimum balance.

Citibank’s solution is the Global Wallet, which offers competitive rates, no minimums, and low fees. If you become a Citigold or Citi Priority client, you can even avoid most of the fees.

The third option is EverBank. It offers WorldCurrency accounts, which are primarily designed for saving and investing. The fees are relatively low, and the minimum account balance requirements are reasonable.

Everywhere money. Meet Wise: the world's most international account

If you’re not living in the US — or if you simply want a more flexible account you can open from anywhere — check out Wise.

Wise isn’t a bank, but a money service business (MSB) that offers an account which allows you to hold, send and receive money. As well as getting an attached multi-currency card — plus you’ll get some extra perks which suit anyone living an international lifestyle.

You’ll be able to hold 40+ currencies, and get local account details for 8+ currencies including USD, to get paid easily by wire or ACH.

Wise offers linked multi-currency cards for spending and withdrawals around the world, and all currency conversion uses the mid-market exchange rate.

That means that whenever you send a payment or spend in a foreign currency your dollars are converted with the mid-market rate with low conversion fees from 0.41%. Easy.

This way to easy
international payments

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Sources:

1. Fidelity - International stock trading
2. Citi - Global Wallet
3. HSBC - Premier Bank Account
4. EverBank - WorldCurrency Access Deposit Account