Hi, Im from australia and im thinking if it is advisable to use AUD for the currency to prevent foreign conversion fees from bank. Is it advisable or should we stick to USD currency in trading. Thank you
Look at the majors for tight spreads and they kind of behave themselves in the sense of seeing repeated patterns
Keep your base currency as USD. This will make it easier when position sizing and managing risk against other major pairs. Transfer fees are the cost of doing business just keep it to a minimum.
You can use USD as your base currency. It has lesser risk against other pairs.
It’s better to start trading with major currency pairs. It’s easy to track their trend.
Hi Mahkeez! Kindly go through the links below.
I have started with EUR/USD/GPB, they were most familiar
It is beneficial to start with major currency pairs instead of exotic and minor pairs. Also, USD as the base currency is always better.
Do you mean which currency you should put your account in?
Or do you mean which should be the base currency of the pair you wish to open a trade in? (for example, in EUR/USD, the base currency is EUR: USD is the counter currency)
If you live in Australia, I assume the funds you will deposit are Australian dollars. Therefore, you should set up your trading account in AUD to avoid unnecessary physical exchange fees.
With your AUD account, you can still trade any currency pair (EUR/USD, GBP/JPY, AUD/NZD) and your profits and losses will be displayed in Australian dollars.
Choose a reputable ASIC-regulated broker. There are several.
Currency prices fluctuate based on the economic situation of the countries involved, geopolitical risk and instability, and trade & financial flows, among other factors, so should I observe the market to choose which currency to use ?
No, just open an account in the currency of the country you are in, with a broker based in the country you are in.
There are two things you need to consider while trading in a pair if you are a beginner:
- You should trade in a pair that is active during your trading hours
- Preferably you should choose Major pairs since they have more liquidity and hence less volatile
You should start with USD as your account base currency. It will be easy to manage trading account in it.
I think you should look at the major currency pairs and keep an eye on how they move. This way you can decide which currency pair to choose.