How to choose a deposit currency?

Beginner Questions
1

Hi

I was wondering which currency would be best for a deposit currency when I open an account?

I live in Canada, so if I am offered the ability to deposit in CAD funds (OandA for example), then would it be beneficial to do so, and why?

If I am not offered my account in CAD funds, then I am thinking USD are best since I usually trade the majors.

So does it really matter??

Thanks

2

Remember you DID SAY THAT hehe

now… Mate,
Generally just pick your local currency. it’s easier for understanding how much you are going to get and what a pip isworth.

your 2nd choice should be USD if you don’t want to use CAD because everything converts FROM USD to local

i would suggest loca
but , NO it doesn’t really matter, you can put your account in YEN if you like,its completely up to you

3

I guess I am thinking that if I convert CAD to USD from a Bank Transfer or Credit Card, I have to pay some juice.
Then I pay again when I convert it back on a withdrawal, to my local currency. (hopefully I have money to withdrawal lol)
Maybe I am answering my own question here, but I am guessing it is cheaper just to keep it in local currency.
So it could mean a few percentage to the banks, and they already have enough money.
thanks

4

You guess correctly. If the money in your bank is in Canadian dollars, and your broker offers a Canadian dollar trading account, then choose that option.

If your broker does not offer a trading account in the same currency as your bank account, then you may find this earlier post helpful: Account base advantage

1 Like
5

well.yes of course there are conversion fees, which is why it’s best to keep it in your local currency if possible

there are 2 things to consider here
Ease - meaning it’s easier to comrehend in your own currency

Cheaper - Less transfer fees are better
you need to find a sweet spot for you

1 Like
6

Most brokers I’ve come across let you deposit into a ‘vault’ within your account using your local currency, so no transaction charges.
You then move the funds into your trading sub-account in whatever currency you want (I know people who do this in usd to keep the maths simple). Again no transaction charge as the money doesn’t leave your account.
When you do withdraw do so in your local currency back to your original bank account at no transaction cost again

1 Like
7

There are many trading pairs in forex business. Basically forex is the business of foreign currency exchange. In this business two currencies are involved, one against another. The currencies from whole world are usable in forex. But there are some major trading currencies, which are rolling in the world are safe for trading. But I must say it will suitable for only new trader. But professional trader found all the currencies according to market demand are suitable for trading.