Hey everyone,
I have a question regarding account base currencies. Traditionally, accounts are typically based in USD, especialy coming from futures trading. I have opened a new account with IC Markets which gives me the option of opening an account in several base currencies. I am a Canadian/American living in Canada hence CAD currency is more useful to me when transferring cash out of my trading accounts and into my chequing etc. Originally I would have to either convert and then transfer or transfer and convert at my local bank thereby taking on currency risk when the conversion needs to take place (effectively gaining or losing money at that time).
In saying this, it would seem like it would make more sense to just hold a CAD account and not have to go through conversions when profits are transferred out. On the flip side however, how does this affect profits on a per trade benefit -- having to convert into CAD on the close of every trade? Im guessing the same would be true with a USD account trading non USD pairs correct?
If anyone with some experience/knowledge on this matter please clarify this for me!
Thanks,
Stefan
I have a question regarding account base currencies. Traditionally, accounts are typically based in USD, especialy coming from futures trading. I have opened a new account with IC Markets which gives me the option of opening an account in several base currencies. I am a Canadian/American living in Canada hence CAD currency is more useful to me when transferring cash out of my trading accounts and into my chequing etc. Originally I would have to either convert and then transfer or transfer and convert at my local bank thereby taking on currency risk when the conversion needs to take place (effectively gaining or losing money at that time).
In saying this, it would seem like it would make more sense to just hold a CAD account and not have to go through conversions when profits are transferred out. On the flip side however, how does this affect profits on a per trade benefit -- having to convert into CAD on the close of every trade? Im guessing the same would be true with a USD account trading non USD pairs correct?
If anyone with some experience/knowledge on this matter please clarify this for me!
Thanks,
Stefan