Canadian opening new account - USD or CAD currency?

Broker Discussion Forex Brokers
1

Hi everyone,

I am canadian and looking to open a new account to trade mainly the fiber or cable. I want to open a new account in either USD or CAD and am not sure of the advantages or disadvantages.

Using a CAD account would make things easier for me obviously but wondering if there is a downside.

Thanks

2

A CAD account will massively simplify your accounting and tax situations, but with the pairs you are thinking of trading I cant see much point to having a USD account.

If you wanted to trade USD as a base currency then it simplifies your initial margin calculations, but I don’t see any other real advantages.

3

I don’t know who offers a CAD account, so right away you are at a disadvantage if you limit your search to CAD brokers only. Most (every) brokers offer USD denominated accounts.

4

Thanks for all your replies. I am planning to trade with Oanda and have the choice between a USD or CAD account. I will probably go with a CAD account as it doesn’t look to have any disadvantages versus a USD.

5

OANDA supports sub-accounts.
Primary USD account can be used for trading, CAD sub-account for deposit/withdrawals.
Transfer funds any time between primary/sub-account at current market rate.

6

I don’t think that it is such a big deal. You can go to your own bank and transfer money to your broker in USD, as your banker will calculate it in CAD. Brokers that allows CAD accounts are not that common and it would be a waste to skip good brokers just because they don’t have this option.