Interactive brokers base currency

Z

z0mbieJesus

Hi,

I'm currently thinking of changing my base currency from AUD to USD, mainly with the purpose of converting my margin deficit into USD. My understanding is this will hedge against USD as I mainly make deposits in AUD but would there be any other significant changes to my account? I understand fees and reporting will be in USD but want to know if this will change anything else to do with my margin loan?

Thanks
 
Seems like you might loose money holding USD versus AUD, based on the USD trend. Something to consider also. Also read more about how it actually works at IB.
 
Keep in mind my account is in negative as I have a margin loan. If I had cash in there I would lose money yes, but if I convert my negative balance to USD (which I believe is only possible if I change base currency) then over time I can pay off my negative USD balance with increasing value AUD.
 
z0mbieJesus said:
Thanks but still not sure it answers my question. Some say it's just reporting but I currently have a negative USD and negative AUD balance in my account and can only convert to AUD.
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That issue is not related to the base currency selection. But seems more related to limitations in foreign currency trades. Depending on IB's subsidiary where you hold your account may certain forex trades be allowed or not allowed. If it is not allowed you may have to contact IB to solve your issue.
 
HobbyTrading said:
That issue is not related to the base currency selection. But seems more related to limitations in foreign currency trades. Depending on IB's subsidiary where you hold your account may certain forex trades be allowed or not allowed. If it is not allowed you may have to contact IB to solve your issue.
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Ok thanks. If this is not allowed wouldn't changing my base currency allow me to keep my negative balance in USD though? I've tried updating my Forex permissions and hit errors so it's likely a subsidiary issue.
 
Ok so changing base currency allowed me to convert my deficit to USD. Fees look mostly similar so should do the job, I'll just change base currency back come tax time.
 
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