For a British, Australian, Canadian etc, what considerations should you make when choosing your primary currency that you use for deposits/withdrawals? This is assuming my broker allows different types of currency accounts.
For example:
If I make an account and deposit my EURO but want to trade primarily USD/CAD what should I be doing?
If I make an account and deposit my EURO and want to trade USD/EURO what should I be doing?
for me , i am using my local currency. too much volatility in the currency market, i see little impact unless you are playing with big amount of money.
sound like a cross account exchange attempt, using the difference between account rate which is change each day along with the market movement. didnt catch the idea completely, eventhough my current account with tickmill are available with other currency based EUR,GBP, SGD, but I still stick with the major USD account based. but if there’s another method to gaining profit by using different currency based between acccount, it should be related to arbitrage triangle currency system.
You can always have multiple accounts in different currencies if you wish. Many opt to remain in their local currency so when they withdraw profits (if ever) it is more visible what they will end up with in the bank minus fees. Your broker will convert automatically and most traders do not operate an account(s) big enough where it make a material difference. For deposit purposes I would suggest you follow the herd and pick the currency which you bank with.
The majority of my accounts are with USD. I don’t really have a valid reason for doing this. I guess it’s because it’s the most traded currency in the world and I trade on pairs with the USD mostly. I trade at ironfx and they allow me to open multiple accounts with different currency bases. Lately with any additional accounts I am registering I open them with my local currency, GBP.
If I make an account and deposit my EURO but want to trade primarily USD/CAD what should I be doing?
If I make an account and deposit my EURO and want to trade USD/EURO what should I be doing?
It shouldn’t really matter what you trade. Once you are trading, any profits or losses you are making should automatically be converted to your accounts currency by your broker. I am not sure if this varies between brokers but where I am trading this is what is happening.
It would be more disadvantageous for you if you choose to use a foreign currency as your primary currency. Charges would apply when converting to your local currency. This is why many trades use their local currency in USD or EUR in order to deposit and withdraw funds hassle free.
As the previous member replied the easy solution will be to have two or more accounts with different currency bases and use the one which suits you more.