base currency in IB; GBP or USD? (if i plan to mainly trade in US stocks)

j2000

Newbie
7 0
I will trade mainly in US stocks, so was thinking it is probably easiest to have USD as base currency,
not sure if it will bring me problems?

The only problems I can think of is the currency conversion on the initial transfer into the account when it converts GBP -> USD,
and when I want to take money out and have to convert USD -> GBP.
 

tomorton

Legendary member
7,231 963
I think you're over-thinking this - or maybe I haven't given it enough thought.....

Are you actually going to buy shares in the US firm?

What I mean is I at times trade US stocks via my spreadbetting firm. The account is in GBP as I am in the UK and they are in the UK. When I "buy" a US share I am actually instructing them to place a bet that the US share's price will rise. I don't buy the shares. If the share price does rise, the SB firm's UK GBP customers who ordered incorrect bets to be placed provide the winnings that go to my account - in GBP. No USD are involved at any point. It would be the same for CFD's and options traded in the UK.