I've not got any currency investments but I am very interested in making my portfolio a little more broad. How does one buy currency without incurring heavy fees? Please be gentle, I am very green in this area so I really am asking as a beginner. Don't scorn a PM brother too much on lack of knowledge. Thanks in advance.
If you want physical currency, try http://www.currencyfair.com You can buy foreign currency there via an exchange mechanism. Better than any FOREX market I reckon.
There is a higher level of counter party risk with having your money with a CFD/forex broker. As you are interested in having some exposure to currencies, sounds like a long term position trade DO NOT touch leverage.
I'm thinking long term, so CFD's scare the shit out of me. Haha. Especially when I'm actually expecting further losses before the rise. I'm just trying to get in before it happens.
I use currencyfair for large trades and can recommend them. I would not store money in there long term though, so having a foreign currency account at your local bank is best. But never use the banks conversion rate, they are horrible, that is what currency fair is for. So set up a USD account at your local bank, transfer AUD from your normal account into currencyfair, convert to USD, then transfer back in your USD bank account. Reverse to go the opposite direction. It's not instant though, takes a few days to transfer stuff.
What silverDJ said is spot on and my thoughts as well. But instead of currencyfair or another remittance service replace that with a reputable forex broker it will be even cheaper, then transfer it out into your bank account.
Only I'm not looking to trade into USD. Plus it's a currency that Currencyfair doesn't offer. Thoughts?
Fair enough... you wanted minimum fees, so suggested CFD's. As far as counterparty risk, CFD leverage makes it safer IMHO, as trade is financed by the CFD broker - not you. You don't have your money with a CFD/forex broker. You get to hold your cash position far away from the broker (under your mattress if you like). Just because CFD's are leveraged doesn't make it scary - just trade the equivalent value in CFD's that you would have anyway, for a lot less outlay - there is no more risk than exchanging physical currency, and as mentioned above, your hard earned stays with you.