Currency investment - possible with ETF?

mok95

I would like to know what is the easiest way to get exposure to a currency, particularly USD and EUR.

I have an investdirect account with HSBC that allows me to buy any ETF traded in the London Stock Exchange.

They also let me have a USD account to play with NYSE, but the process of moving cash to/from that account is painful, and the spreads on the currency dreadful (I learnt this the hard way).

Any advice on how I could invest in these currencies would be most appreciated.

Thanks

tradetime

Traded on the LSE, you would probably have to go with ETFS currency ETF's
I am unfamiliar with the trading habits of these products, so can't speak for liquidity or spreads. Unfortunately the UK markets lack a degree of imagination for the retail traders to play in.
Alternatives to that would be through an FX account which would probably give you better spread.

mok95

Thank you very much - that's very useful. Besides the potential spread, what would be the main differences between using an FX broker and one of these ETFs?

Are there many technicalities involved in FX trading, or is it relatively straightforward? I am only looking protect myself against the rise of the Euro and Dollar, so wouldn't do anything sophisticated.

Thanks again

tradetime

Using ETF's would cost you commission, to buy and sell, if your commission is flat fee then the larger your purchase the better. FX brokers usually include the commission within the spread.
A negative with FX brokers however is that they are designed for trading and therefore extend leverage and leverage generally costs money.usually at a rate of Libor +