Here’s the thing about forex trading: there’s always a least one or two major currencies going up at all times. This means there is always a currency safe haven out there. Sean  Hyman says currency ETFs and CDs (Certificates of Deposits) are two easy ways to play the currency market.

This from The Sovereign Society:

The currency market is bigger than all of the world’s stock markets combined. This market gushes with $4 trillion worth of currencies EACH DAY, 24 hours a day.In times of turmoil, there’s always a safe haven in currencies. The trick is finding it. These opportunities normally don’t pop up on investors’ radar screens because most investors have no idea how to even get a quote or a chart for a currency.

In fact, in these tough times the Japanese yen has been soaring like a rocket and so has the Swiss franc. Savvy hedge fund managers have been buying up the yen as stocks have crumbled. They saved their portfolios (not to mention their jobs) by grabbing this lifeline.

So how can you take the sting out of your portfolio like they do? After all, can the Average Joe get involved with this market or do you need to have billions of dollars under management to gain access?

Well, since the late 1990s, retail investors have had access to the spot forex market. And in the last couple of years, industry leaders have invented more investments to allow stock investors in on the currency game too.

So let’s take a look at some of the easiest ways to get diversified into currencies so that the madness happening to most portfolios never has to happen to you again.

Trade Currencies Through Your PRESENT Stock Brokerage Account

Now you can use currency exchange traded funds (ETFs) to invest in currencies through your current stock brokerage account. And it’s true that many brokers don’t know much about these because they aren’t a focal point of their business.

However, you can use ETFs to buy currencies from many of the world’s major countries.

In fact, you can buy ETFs that track the euro (NYSE:FXE), the British pound (NYSE:FXB), the Japanese yen (NYSE:FXY), the Swiss franc (NYSE:FXF), the Canadian dollar (NYSE:FXC), and the Australian dollar (NYSE:FXA).

In fact, you can even invest in some country’s currencies that aren’t so “major” such as the Swedish krona (NYSE:FXS) and even the Mexican peso (NYSE:FXM).

And the good news is more currency ETFs are coming out all the time.

The best part is that you can invest in them in the very same account that you would use to buy shares of Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), IBM (NYSE:IBM) or GE (NYSE:GE).

There are only two drawbacks to investing in ETFs. First, ETFs can’t provide the leveraged returns you can earn in the spot Forex market. Also, you have to pay commissions just like a typical stock (on the buy and on the sell side, just like stocks). However, it’s worth noting that the spot forex account doesn’t have commissions on the buy or the sell side.

So if I buy FXY in a Charles Schwab or E*trade account, then I can profit from the yen in a typical stock brokerage account. Then once normalcy resumes in the markets, I could sell the yen position and buy something like the euro or the pound (both tend to do better in good times).

FDIC-Insured Foreign Currency CDs Provide Shelter from the Storm

Another very simple way to invest in this asset class and shield your portfolio is to buy Foreign Currency CDs (yes, you can buy Certificates of Deposits that are denominated in euros, yen, pounds, francs, etc.)

It’s an excellent way to get some of your market exposure away from stocks and into something that can actually counteract your present losses.

So where can you buy a currency CD?

Do you have to send your money to a foreign land and into a foreign bank? Of course not! You can take your U.S. dollars (or other currencies) and buy CDs denominated in another currency through a bank right here in the United States.

EverBank (in Florida) is the only US bank I know of that offers such unique products like this…not only for Americans but for clients from around the world.

And best of all, most of these Foreign Currency CDs are FDIC-insured, so you can rest easy knowing that your deposit is backed by the full faith and credit of the U.S. government.

In fact — just to keep it simple — EverBank offers CDs that focus on a basket of Asian currencies for instance…or yet another than focuses on most other major currencies except the US dollar. That way you can diversify away from the greenback when it’s falling like a rock, or just minimize your exposure to any single currency (including the dollar) for better portfolio stability.

Source: The Two Easiest Ways to Diversify into the “Hidden World” of Currencies Tomorrow