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Q: Suggestions for account home currency?

  • #1
  • First Post: Edited 1:47am Mar 3, 2007 1:37am | Edited 1:47am
Hi All.

I have just opened a live trading account with a broker.

I have the choice of selecting the 'home' currency of my account. That is, the currency in which my account balance and funds are held in.

After this last week I am a bit concerned of the stability of the US dollar in the long term and wonder whether I should keep my 'home currency' in either JPY or GBP.

I reside between several countries and do not necessarily consume in just one. I am most interested in which currency will appreciate in the next 2-3 years against the majors.

I don't have faith in the US economy in the above time period.
I feel the GBP will hold strong.
The JPY could be a risk, but to me is pointing to strengthening considerably.

Any thoughts or suggestions, greatly appreciated.

SN
  • #2
  • Mar 3, 2007 1:54am Mar 3, 2007 1:54am
You have to take into account the interest that is being paid. Most brokers (honest ones at least) will pay interest to the amount in the account. Thus USD that pays 5.25% should be making about 4.5-5.0% in the account? GBP is 5.25% so that should be about the same. Yen pays .50%.

Perhaps you can set up two or even three accounts and place GBP, Yen and US$?
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #3
  • Mar 3, 2007 2:44am Mar 3, 2007 2:44am
Consider AUD as well.
  • #4
  • Mar 3, 2007 2:56am Mar 3, 2007 2:56am
Thanks StockKJay,

That gives me much better perspective. Quite hard to justify a home currency in JPY with a 0.5% interest rate.

cheers.

Quoting StockKJay
You have to take into account the interest that is being paid. Most brokers (honest ones at least) will pay interest to the amount in the account. Thus USD that pays 5.25% should be making about 4.5-5.0% in the account? GBP is 5.25% so that should be about the same. Yen pays .50%.

Perhaps you can set up two or even three accounts and place GBP, Yen and US$?
  • #5
  • Mar 3, 2007 10:21am Mar 3, 2007 10:21am
GBP and EUR would probably be your best bet. In 2-3 years, I don't expect much depreciation in those currencies.

The JPY is looking forward to strength, but I'm not sure considerable is the correct word. I DO think that the world will be heading towards some rough times in the next 2-3 years, so I'm not sure there will be much appreciation in many currencies, but since it's all relative, my guess is that you should go with either the EUR, or GBP.

Quoting stunew
Hi All.

I have just opened a live trading account with a broker.

I have the choice of selecting the 'home' currency of my account. That is, the currency in which my account balance and funds are held in.

After this last week I am a bit concerned of the stability of the US dollar in the long term and wonder whether I should keep my 'home currency' in either JPY or GBP.

I reside between several countries and do not necessarily consume in just one. I am most interested in which currency will appreciate in the next 2-3 years against the majors.

I don't have faith in the US economy in the above time period.
I feel the GBP will hold strong.
The JPY could be a risk, but to me is pointing to strengthening considerably.

Any thoughts or suggestions, greatly appreciated.

SN
  • #6
  • Last Post: Mar 4, 2007 12:37pm Mar 4, 2007 12:37pm
Quoting stunew

After this last week I am a bit concerned of the stability of the US dollar in the long term and wonder whether I should keep my 'home currency' in either JPY or GBP.
That's a great question, Stunew. I've been considering the same issue.

I heard that Warren Buffet put $19 billion on a weaker dollar. And Buffet backtested real well.
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