I'm curious about switching my USD to AUD and was wondering if anyone had any insight into the issue beyond what 'seems' to be obvious. (The conversion would likely go through IDEALPRO via IB and is not leveraged.) Obviously AUD offers a much better interest rate and I don't see the dollar significantly strengthening against it (if anything I expect the dollar to continue to weaken in spite of the Fed keeping rates steady). So it 'seems' like a no-brainer to convert to AUD and to borrow USD when trading US equities. As far as I know then, the risk is limited to the dollar strengthening against AUD which is unlikely to be extreme even if it goes against me. Are there any other risks no matter how unlikely (especially 3rd party risks)? For example, I think I know of all the 3rd party risks associated with having money in American banks or brokers with FDIC or SPIC coverage but I don't know who all the 3rd parties are in a FOREX transaction, who the AUD holding bank will be, what the risk against that bank is, etc. Thanks for any insight. I'm thinking of making the move but because it involves parties outside of my normal trading I'm concerned about risk.