Are there any pros or cons to opening your trading account in a certain currency? for example my Oanda account is in US dollars, but what if I opened it using British pounds? does it matter one way or the other?
If you already have the currency in your bank account, then the pro is that it does not have to be physically converted to match the denomination of your trading account. The spread charged by the bank for physical conversion will be much wider than the retail spreads you see on the trading platform.
The con is that you have exposure to a loss in value of that currency, then again this is true with any currency you choose to have your account denominated in.
Second thing to keep in mind is any possible change in pip values. If you open a USD denominated account and trade EUR/USD, pip value is equal to $1. If you open a GBP denominated account, then the $1 is converted back to GBP. This means the pip value can fluctuate since GBP/USD rate fluctuates.
If you set the currency of your trading account to something other than your home currency you are effectively taking a position that the former will at least not lose value against the latter. For most folks, especially newer traders, that’s probably not the type of “trade” they should be making.
That aside, dealing with pip values and such outside your home currency adds a level of complexity to the process. Forex trading can be a tricky enough business in the first place without have to make it any more complicated.
yeah, I don’t want to get any more compicated than necessary. Was just wondering.
As a Swede that’s something I’m forced to do 
I’ve had the choice to open a � or $ or � account and I’ve chosen euros hoping that Sweden might enter the EMU someday.
Until then I’m in unwillingly in a constant EUR/SEK trade.
This subject is something I’ve thought about but I’ve never seen anyone post about it until now.
For the many of us that have a different domestic currency this is certainly something to think about.
I was wondering because I know someone in Britain and haven’t even thought to ask him if his account is in GBPs? Then I got to thinking well does it matter? To keep things simple I intend to keep my account in US$ even if I go with an overseas broker like FXCM UK if they allow it.
That sounds like a wise plan and I’m sure they offer USD. Can’t imagine anything else.
If I could, I’d have my trading account in SEK, but that’s not gonna happen any day soon :rolleyes: