What currency should my account be in? I would likely have CAD in my account. What if I wanted to make a trade with EUR/USD for example. Would my CAD have to be converted to EUR, execute the trade, then convert back to CAD? What if the exchange rate between CAD and EUR went down during the time I made the trade, and
I lost all potential profits? Maybe I’m thinking way too deeply about this, but I can’t seem to find any information on this anywhere else. Any info is appreciated.
The account currency makes no difference to most private retail trader’s trades. My account is in GBP: if I want to buy EUR/USD, the trade is with the broker, they don’t buy or sell any actual currency for me, its just a private arrangement between you and the broker - its just a private bet. If the EUR/USD exchange rate goes up they will pay me GBP in proportion to the size of my bet, if the exchange rate goes down, I will pay them in the same way. The actual currency market will never know anything about our private arrangement.
However, if I lived in France and had my account in GBP, if I want to withdraw funds from the account, I would have to convert them into Euros in order to spend the money in France.
Also check with your broker on any conversion charges. Here’s the FAQ from forex.com
https://www.forex.com/en-us/support/faqs/pricing-and-fees/
Read the question that says “Is there a currency conversion charge.”
I don’t know if all brokers do it.
From my knowledge, there is a conversio charge with most of them. So yeah, I agree, you need to check. But in most of cases, EUR and USD are good as a acc currency
Ok that makes sense. Thanks for the info
I don’t think it really matters. Everything depends on your broker and its conditions, you know. Of course if you live somewhere in Europe you are able to open an account in eur and start trading. When you finally will come to the amount of money which you want to withdraw you can withdraw it in euros and then exchange them for crones for example. Yeah you will lose some insignificant amount of money on exchanging. Another option is to find a broker which offers more than 3 or 4 currencies for depositing and withdrawing. It’s kinds difficult to find such one, nevertheless you should be patient and not to be lazy to spend your time on searching.