Expert: Gina Boykin - 10/5/2008

Question
Hello Gina,
I have been thinking that if and when the US dollar gains any substantial strength against the Euro, I might like to buy a couple hundred dollars of Euro currency (i.e. actual Euro banknotes) just for kicks and giggles,(I know that "investing" in foreign currency is a high risk venture). As you probably know, the big currency exchange services must require you to submit to them your SSN, which they permanently keep on file (due to post 9/11 security concerns).  So my question is this: are you aware of any laws forbidding the buying and selling of foreign currency between private individuals via (for example) Ebay or other online auctions where the buyer is not required to hand out his SSN to the seller?   Are you aware of any potential legal technicalities one should consider before buying foreign currency in this manner?  Thanks, Jed

Answer
I have actually never heard of purchasing foreign currency in this manner.  In fact, any true investment company should require your personal information because the company should be reporting your gains/losses to the IRS.  I would not invest unless I was putting my money in an account with a company that is registered by the National Futures Association (NFA).  Also, the Commodity Futures Trading Commission (CFTC) is the federal agency that regulates the trading of forex. Check out both of their websites for more information, and to make sure you stay away from forex fraud.