Newbie - Opening account in dollars or euros

Discussion in 'Trading' started by Spec_pt, Dec 1, 2008.

  1. Spec_pt


    Sorry for the newbie question but it's a bit of a detail and I could not not find anything mentioned here.

    I'm from Portugal (we have euros) and I'm going to open an account in IB to trade US stocks.

    Should I open the account in Euros or in dolars ?

    If in Euros - I don't have forex risk. However I presume that IB converts my euros into dollars everytime I make a trade. Is this correct ? If so I will be paying some EURUSD pips for each trade...

    If in dolars - I will have the forex risk (which I may hedge with future contracts probbaly). On the other side I won't have forex costs.