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# Base Currency

## Question

Hello!

What is the best choice for Base Currency in IG.com when trading?

In my case, I am in Europe, and right now I have the base currency in EUR.

## Recommended Posts

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1 hour ago, Ovidas said:

Hello!

What is the best choice for Base Currency in IG.com when trading?

In my case, I am in Europe, and right now I have the base currency in EUR.

Hi @Ovidas,

The currency you use for funding and the markets in which you trade are determining factors. When you trade in markets with a currency that differs from your account's base currency and fund it using a different currency, currency conversion is typically necessary. This also applies when you withdraw currency that is different from the denomination of your receiving bank account or card.

Example:
Say you’re buying \$50 per point worth of Wallstreet (US30) and the base currency of your trading account is EUR. Since you have chosen to trade in USD which is different from your base currency, we need to convert any related transactions to EUR.
Our standard FX conversion fee is 0.5% which is added to the best available exchange rate provided by several banks. To add our FX conversion fee, we multiply the underlying exchange rate by 1.005 before converting.

Assume the exchange rate is 1.3176 (EUR 1 equals \$1.3176). After adding our conversion fee of 0.5%, we get a conversion rate of 1.3176 x 1.005 = 1.3242*.

If Wallstreet increases by 15 points, your profit will be \$750. This will be reflected as \$750/1.3242 = EUR 566.38 on your account. To calculate the admin fee charged, multiply your profit by 0.5%:

EUR 566.38 profit x 0.5% = EUR 2.38 FX conversion fee (already included – not charged separately)

*All examples are for illustrative purposes only. Please check the costs and charges before trading. Figures may not add up to a given total due to rounding.

By default,  CFD accounts are set to ‘instant’ conversion. This means we automatically convert any realized profit, loss, funding, dividend adjustments, or commission to your base currency.

*To view and change your currency conversion settings for spread betting and CFD accounts, you can follow the steps below:

2. Select ‘live accounts'
3. Choose the relevant spread bet or CFD account from the drop-down menu
4. Select ‘currency conversion’
5. Change your settings as you wish

All the best- A.B

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On 21/04/2023 at 06:09, AshishIG said:

Hi @Ovidas,

The currency you use for funding and the markets in which you trade are determining factors. When you trade in markets with a currency that differs from your account's base currency and fund it using a different currency, currency conversion is typically necessary. This also applies when you withdraw currency that is different from the denomination of your receiving bank account or card.

Example:
Say you’re buying \$50 per point worth of Wallstreet (US30) and the base currency of your trading account is EUR. Since you have chosen to trade in USD which is different from your base currency, we need to convert any related transactions to EUR.
Our standard FX conversion fee is 0.5% which is added to the best available exchange rate provided by several banks. To add our FX conversion fee, we multiply the underlying exchange rate by 1.005 before converting.

Assume the exchange rate is 1.3176 (EUR 1 equals \$1.3176). After adding our conversion fee of 0.5%, we get a conversion rate of 1.3176 x 1.005 = 1.3242*.

If Wallstreet increases by 15 points, your profit will be \$750. This will be reflected as \$750/1.3242 = EUR 566.38 on your account. To calculate the admin fee charged, multiply your profit by 0.5%:

EUR 566.38 profit x 0.5% = EUR 2.38 FX conversion fee (already included – not charged separately)

*All examples are for illustrative purposes only. Please check the costs and charges before trading. Figures may not add up to a given total due to rounding.

By default,  CFD accounts are set to ‘instant’ conversion. This means we automatically convert any realized profit, loss, funding, dividend adjustments, or commission to your base currency.

*To view and change your currency conversion settings for spread betting and CFD accounts, you can follow the steps below:

2. Select ‘live accounts'
3. Choose the relevant spread bet or CFD account from the drop-down menu
4. Select ‘currency conversion’
5. Change your settings as you wish

All the best- A.B

You didn't answer the question though. You explained currency conversion all fine but the OP asked what is best to be their base currency and I want to ask again:

If most or all of my stocks are in USD, is it best to change my base currency on the IG platform to be USD instead of GBP? To avoid paying all the FX conversion fees every time I buy and sell shares.

If I change my base currency, does it mean IG will only do FX conversions at time of deposit and withdrawal?

Best regards

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On 24/07/2023 at 22:59, JZ123 said:

You didn't answer the question though. You explained currency conversion all fine but the OP asked what is best to be their base currency and I want to ask again:

If most or all of my stocks are in USD, is it best to change my base currency on the IG platform to be USD instead of GBP? To avoid paying all the FX conversion fees every time I buy and sell shares.

If I change my base currency, does it mean IG will only do FX conversions at time of deposit and withdrawal?

Best regards

Hi @JZ123,

Share dealing accounts must be denominated in GBP/Residing country currency due to tax regulations and this cannot be altered. Nevertheless, you have the option to set up a multi-currency account, which allows trades settled in USD to remain in USD instead of converting back to GBP. This enables you to use USD for future trades. To make this change, please visit the "Currency Conversion" section under "My IG" > "Live Account". Please be aware that switching to a multi-currency account will also affect your commission structure. For additional information, kindly refer to https://www.ig.com/uk/investments/share-dealing/costs-fees

All the best,
AshishIG

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