Registered: Jun 2008
09-16-12 08:45 AM
Quote from billyjoerob:
IB gives you the option of currency to denominate your account. Isn't that a steal way to be long a currency?
The original question was about leveraged FX.
Anyway, the approach has limitations because
(1) it is not leveraged (well you can leverage it outside an IRA but then you will pay hefty interest)
(2) in an IRA, you can then only buy assets in their own currency. Outside an IRA, IB will charge you (overpriced) interest if you buy anything denominated in USD while your cash remains in the foreign currency.
Other than that, yes, you can hold spare cash that way in other currencies if you want, including in an IRA.