Is a £/$ conversion best via my Bank or via the Broker?

I have a UK (GBP£) Bank account, but want to trade EUR/USD.

I can either get my Bank to convert £ to $ so I can fund my Broker account in $ … or I can fund my Broker ac with £GBP and get the broker to handle the conversion from GBP to US$

Which way is best ?? … How do the 2 different options work?

Many Thanks in advance.

Choose GBP as your accounts base currency with your broker.

Fund your account by sending GBP from your UK bank account to your GBP brokerage account. There will not be a rate of exchange involved in this transfer.

Then trade any currency pair you like when your funds get credited to your brokerage account. Those conversions will be done at inter bank spreads, as quoted on the trading platform.

I recommend that you do not do it any other way… Retail spreads would be involved and possibly other transaction fees making conversions through your bank. It will probably be a costly mistake for deposits and then the withdrawals between your bank and brokerage account.

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You can trade EURUSD denominated in GBP in Forex because you’re trading the exchange rate rather than re-denominating your base currency. If you use 2X leverage at least then you’ll have no GBP exposure.

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Many Thanks for the advice :slight_smile: … very clear and concise.

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