Account currency - futures io
futures io



Account currency


Discussion in Brokers

Updated
      Top Posters
    1. looks_one Quick Summary with 1 posts (0 thanks)
    2. looks_two keymoo with 1 posts (0 thanks)
    3. looks_3 Fadi with 1 posts (2 thanks)
    4. looks_4 Daytrader999 with 1 posts (0 thanks)
    1. trending_up 1,243 views
    2. thumb_up 4 thanks given
    3. group 1 followers
    1. forum 4 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Account currency

(login for full post details)
  #1 (permalink)
 keymoo 
Bedford, UK
 
Experience: Beginner
Platform: SierraChart/TT Feed
Trading: NQ
 
keymoo's Avatar
 
Posts: 129 since Mar 2012
Thanks: 212 given, 214 received

I trade US futures and Eurex futures. Mainly NQ, ES, 6E, 6J, FDAX, FGBL and am thinking of looking at GC and CL as well. My account is in USD at the moment but I'm from UK. I'm wondering about currency risk, and whether I should have my account in GBP for trading both US (USD denominated) and EU (EUR denominated) markets.

I'm not keen on using futures to actually hedge my futures account, although I can see a valid reason for doing that. Keen to hear from people that have their futures account in a different country than their own.

Follow me on Twitter Started this thread Reply With Quote

Journal Challenge April 2021 results (now extended!):
Competing for $1800 in prizes from Jigsaw
looks_oneMaking a Living with the Microsby sstheo
(385 thanks from 40 posts)
looks_twoSalao's Journalby Salao
(85 thanks from 14 posts)
looks_3Learning to Profit - A journey in algorithms and optionsby Syntax
(59 thanks from 18 posts)
looks_4Deetee’s DAX Trading Journal (time based)by Deetee
(51 thanks from 23 posts)
looks_5Maybe a little bit different journalby Malykubo
(37 thanks from 23 posts)
 
Best Threads (Most Thanked)
in the last 7 days on futures io
The Crude Dude Oil Trading System
100 thanks
Help improve the FIO community
38 thanks
futures io site changelog and issues/problem reporting
33 thanks
Seasonal Trades
25 thanks
Spoo-nalysis ES e-mini futures S&P 500
22 thanks
 
(login for full post details)
  #3 (permalink)
 Daytrader999 
Legendary Market Wizard
Ilsede, Germany
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: Rithmic / CQG / Ninja Trader Brokerage
Trading: NQ
 
Daytrader999's Avatar
 
Posts: 1,378 since Sep 2011
Thanks: 1,548 given, 2,025 received


Well, same problem here. Since I'm located in Germany I initially funded my account at Mirus with a EUR amount bank transfer, but my account balance is showing up in USD. So I'm facing the same currency risk since my account value changes more or less slightly every day due to this fact...but I don't remember whether or not I even had the choice to fund my account with USD at that time.

Maybe bottom line it could make sense asking the broker to change the account to USD as the leading currency in order to avoid these currency fluctuations...

Reply With Quote
 
(login for full post details)
  #4 (permalink)
 Fadi 
Luxembourg
 
Experience: Advanced
Platform: NinjaTrader
Broker: IB / Kinetick
Trading: ES, CL
 
Fadi's Avatar
 
Posts: 489 since Apr 2012
Thanks: 666 given, 646 received

Hi there
Perhaps not a direct answer to your question, but I share the same concerns and never really found a perfect solution to it.

I have one single account though that holds all type of financial instruments and with one single broker.
I trade a variety of international instruments too: futures, options, stocks, and forex, obviously in different currencies to complicate things a bit...

My base currency is the euro, but I ended up with gains in all the majors (USD, EUR, GBP, JPY, AUD, CAD, CHF) that I did not bother to convert back to Eur. I found it personally better to have my account base currency in the currency I deal with with my government for tax purposes. All my statements, reports, certificates, and so on are issued in the base currency - at least with my broker they are, so that makes it easy on the administrative part.

But I don't really know what is ultimately more important: purchasing power in my local currency (i.e. EUR), or purchasing power overall worldwide? Because the first would push me into converting a currency back to euro when it is most convenient, while the second approach would make me hunt for the strongest currency of the moment and convert everything to it whenever appropriate... Do I make sense here? Hehehe

However, As of now, I do not convert any gain made in any currency, it just sits segregated in the account.
I say to myself, this is a bit of an auto self hedging, in the end we don't really know which country (if any) will win this currency war taking place as of late.

I remain very eager to read other traders' tricks and recommendations too.
Thanks for the thread.

Cheers
Fadi

Successful people will do what unsuccessful people won't or can't do!
Follow me on Twitter Reply With Quote
The following 2 users say Thank You to Fadi for this post:
 
(login for full post details)
  #5 (permalink)
karoshiman
Munich, Germany
 
 
Posts: 285 since Apr 2012
Thanks: 121 given, 117 received


keymoo View Post
I trade US futures and Eurex futures. Mainly NQ, ES, 6E, 6J, FDAX, FGBL and am thinking of looking at GC and CL as well. My account is in USD at the moment but I'm from UK. I'm wondering about currency risk, and whether I should have my account in GBP for trading both US (USD denominated) and EU (EUR denominated) markets.

I'm not keen on using futures to actually hedge my futures account, although I can see a valid reason for doing that. Keen to hear from people that have their futures account in a different country than their own.


My understanding is that your broker has to convert parts of your account into USD or EUR if you trade US or EUR markets, respectively (segregated accounts). Hence, it cannot stay in GBP. Check your broker statements, you should see that there.

So, because of the above, you will expose yourself to currency risk compared to GBP anyways. If you want to hedge that you would need a separate GBP account.

On the other hand, if you have other income in GBP you can view your futures account as a diversification in currencies, which is not a bad thing (especially nowadays).

The topic which @Daytrader999 raises is another one. It is annoying, if you have segregated accounts with different currencies (e.g. USD and EUR) as your equity (in USD) is constantly fluctuating a little bit and you cannot reconcile precisely with your P&L from trading. At the beginning that drove me crazy, but I got used to it.

But that reminds me to call my broker and ask for switching my whole account to USD only (no segregated EUR amount) as I will trade the US index futures anyways in the near future (hence, no EUR needed anymore). If the whole account is in USD there shouldn't be any fluctuations due to fx changes and reconciliation should be easy.

Reply With Quote
The following 2 users say Thank You to karoshiman for this post:


futures io Trading Community Trading Reviews and Vendors Brokers > Account currency


Last Updated on May 12, 2013


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Journal Challenge w/$1,800 in prizes!

April

An Introduction to CME Group Micro Bitcoin Futures w/David Lerman

Elite only
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts