What’s the currency you hold in your forex broker account?

Discussion in 'Forex Education' started by asiaforexmentor1, Dec 15, 2011.

  1. asiaforexmentor1

    asiaforexmentor1 Banned

    81
    0
    0
    What’s the currency held in your broker?

    This is one very important thing that every forex trader should know.
    What’s the currency that you hold in your forex broker account?
    Regardless of which country are you living in.
    Your currency denominator in your forex account should NOT be in USD.
    This may come as a BIG Shocker to you.
    And if your denominator is in USD. Change It Now!
    -Important Forex Tip – What’s the currency held in your broker?

    Here’s why:
    My Example: I’m based in Singapore. Around 2-3 years back, the USD to SGD (singapore dollar) is at the rate of 1 : 1.4 (est)
    -Therefore $1 USD is equals to $1.4 SGD.
    -But today $1 USD is equal to $1.1~ SGD.
    So had my forex account denominator be held in USD. I will be making a huge loss!
    Just for example. If your capital is $100,000 USD 3 years back, if i convert it back to SGD. It will be $140,000 SGD.
    And supposedly, if i never traded the account. Today my capital left will be $110,000 SGD.
    Meaning i made a loss on my account even though i did not even took a single trade!
    Do you see what i’m driving here.
    Even though if i had traded the account, my profits would have been wiped off or massively reduced due to the currency difference.
    Which also means that you are practically wasting your time trading forex as none of your profits could be seen.
    -Important Forex Tip – What’s the currency held in your broker?

    So what now?
    -Here’s the fact.
    The USD will continue its way down, unless there is a chance of them clearing the trillion of dollars in debt. (chances are really slim)
    Til then, the USD will at least not grow back to what it once was.
    So if you are living outside of the United States.
    You should either put your currency in your own country’s denominator or place it in a country which has a stable economy (eg. Singapore is one of them)
    And if you are living in the United States.
    You should change your denominator to another country which has a stable economy. (Not EUR – due to its mounting debt)
    Some brokers will not allow the change if you are living in the United States but some will.
    So if those brokers doesn’t allow you to change your denominator to other currency.
    CHANGE THEM!
    -Important Forex Tip – What’s the currency held in your broker?

    -By changing your denominator to other currency, and if the usd continues falling against the currency you put in.
    You will see a growth in your capital without even trading!
    So that’s Extra Profits! (or even to cover your losses you made through silly mistakes)
    Let me know if this post has helped you.
    Do share it and like it! Cheers!
    Ezekiel Chew, Asia #1 Forex Mentor
     
  2. mr.gardner

    mr.gardner Trader

    35
    0
    17
    Hi there!

    I cannot agree with you.
    “My Example: I’m based in Singapore. Around 2-3 years back, the USD to SGD (singapore dollar) is at the rate of 1 : 1.4 (est)
    -Therefore $1 USD is equals to $1.4 SGD.
    -But today $1 USD is equal to $1.1~ SGD.”
    What may have happened if today’s rate is 1.6 ?
    The most important thing to take into consideration when choosing the base currency of your account is transaction costs. If you have GBP account in your bank it would better to open GBP account. You cannot avoid the currency risk anyway.

    Best of wishes!
     
  3. Alchemist

    Alchemist Active Trader

    74
    0
    27
    I agree with this, as a general rule. However, if you live in a country that is politically unstable, you may need to consider an alternative. Like the USD. :D
     
  4. Aldrich

    Aldrich Trader

    1
    0
    12
    Well
    This is really good.
    $1 USD is equals to $1.4 SGD.
    -But today $1 USD is equal to $1.1~ SGD.
     
  5. SamForexTrader

    SamForexTrader Active Trader

    30
    0
    27
    I am adjusted to trading with EURUSD. Maybe it is a habit, I don't know, but I do not even wish to change it. This is the most liquid currency pair, I think.
     
  6. Master Forex IB

    Master Forex IB Active Trader

    174
    1
    27
    I i nvested in USD with my broker. I can trade in different currency pairs when I open positions.\My loss and profits are calculated in USD. I withdraw my profits in this currrency and trasfer to my bank account. I think this is the main currency of the world alldealings are treated confidently.
     
  7. Agnnis bingamin

    Agnnis bingamin Trader

    66
    0
    17
    I like to trade with having pair in USD/EUR.
     
  8. Emibluz

    Emibluz Banned

    165
    0
    27
    Surely I prefer the USD for it liquidity and most times flexibility being a blue chip in the market.
     
  9. lee.belisar

    lee.belisar Confirmed Gdmfx Representative

    42
    0
    22
    When I go to live trading, what I really plan to trade is the pair of EUR and USD because the euro against the USD is the widely traded currency pair. Second option is the USD and CAD pair.
     
  10. CamDude1

    CamDude1 Trader

    5
    0
    12
    My account is in GBP (I' m in UK). It is most convenient that way. I don't think it really matters what the account is in when you trade. You can still trade any currency
     
  11. Rambo35

    Rambo35 Confirmed PaxForex Representative

    909
    12
    32
    I have my account in Euros. I used to have it in USD, but changed over two years ago.
     
  12. KennyMill

    KennyMill Trader

    20
    0
    22
    Both EUR account and an USD account. I usually keep more in the accounts that are favored by the daily and weekly trends. If EUR is getting stronger, I try to have less dollars around for a few months, until the trend changes.
     
  13. Exness Support

    Exness Support Active Trader

    572
    0
    32
    I would suggest that rather have your forex account in your local currency. Means if you are from Australia keep AUD as your base currency with your broker, If you are from UK Keep it as GBP. That way irrespective of exchange rate changes you dont lose any money also you dont gain any but at least your money will be risk free against the conversion rate changes
     
  14. jezzykid

    jezzykid Banned

    37
    0
    0
    I hold my account on Profiforex in dollars, though my main currency is EUR, my withdrawal are converted to EUR once it hits my account; at the exchange rate of 0.9135.
     
  15. chief

    chief Confirmed Tickmill Representative

    217
    2
    37
    never found any brokers who provide my local exchange currency, guess that's the risk for living at still-growing country :). but ever since I hold my account at USD base currency. these when the payment method become crucial, and one most important upon choosing any potential brokers. wire transfer are widely use upon EU and US trader, but for me a wire transfer could lead into more fee charge, since our local bank are not too kind for having flexibility upon international transaction. these where I keep my account with Tickmill, instead their good trading condition, fasapay and skrill are become decent option for payment method, less fee, save time and secure.
     
  16. Ary Barroso

    Ary Barroso Active Trader

    418
    9
    29
    If you hold a trade for a long time; what’s the benefit actually? Nothing! This is way, I love scalping trading; it produces the result too early! Besides, I have no interested in hedging!
     

Share This Page