Which currency should you open a Forex account in?

Hello, friends! In an era of instability in the economy, when even the Chinese Yuan and Swiss Franc in one day show an exchange rate change close to 20%, not to mention the Russian Ruble, the question arises sharply: what should you keep your money in? And given the specialization of our resource, this question sounds like: "What should you keep money in on Forex?" In which currency should you open an account?

Today we will talk about the pros and cons of accounts in euros, gold, bitcoins, U.S. dollars, rubles, and British pounds.

Problems in the Eurozone are growing, it is already more than obvious to everyone that Europe is nothing more than a puppet in the hands of the overlords from the USA. Individual countries try to resist the established order, but they are punished. Punished harshly, so others will not get any ideas. As a result, unemployment is rising, and the euro exchange rate is striving for parity with the dollar. That is, the euro is of interest to us only for trips to Europe during vacation periods.

In what cases should you open a Forex account in euros? Only if you live in the European Union and use the European currency in everyday life. Then it will be easier for you to withdraw what you have earned, since you will avoid conversion. Again, the nearly equivalent exchange rate to the dollar makes calculating money management not as difficult as in the case of other deposit currencies.

Gold has long been considered a safe haven for investors. When crises hit the real estate market and stock exchanges, the price of gold rose.

However, in recent years this has not been the case. Since the autumn of 2011, the price of gold has been falling. During this time there have been many crises, especially in Europe, but this did not affect gold in any way, it continues to decline. There is talk of a collusion among banks, but right now we are not talking about speculation. Below you can see the weekly chart of the XAUUSD (gold) rate.

It is too early to speak of long-term growth for now. Is it worth opening a Forex account in gold? Clearly not. Only if you are aiming at some very distant prospect, or are simply crazy about the yellow metal. Gold accounts can be opened with Alpari.

Many of you have probably heard of the Bitcoin cryptocurrency, as well as of people who made a fortune on its significant rise. On the wave of this currency's popularity, some stores started accepting it, as did certain Forex brokers, for example FxOpen.

Besides the fact that bitcoins are not very highly valued in Russia, the peak of their popularity is long gone. There were too few opportunities to spend them, and for many people it was not easy, and often simply lazy, to understand the technical side. Below is the bitcoin rate as of the time the article was written.

Who would a Forex account in bitcoins suit? Those who already have a lot of bitcoins, techno-geeks, smoothie-loving hipsters, fans of all-around anonymity, and other dubious personalities.

You do not need to be a genius to guess that the Russian ruble is not going through the best of times right now. There is classic advice to save in the currency in which you plan to spend, but I would not follow it so blindly. About once every 5-10 years, economic crises occur in Russia, prices for everything rise, and the ruble exchange rate falls. I simply feel sorry for those who are waiting for the old rate of 36 rubles to the dollar. Empty hopes, because a high dollar exchange rate is beneficial to our government: it can get more money for the same amount of oil.

I have already written about the technical disadvantages of ruble accounts, and I want to add that there is also one plus: no conversion when withdrawing funds. But it is too small to outweigh the other drawbacks of ruble accounts on Forex.

In general, the British pound is quite a good currency, but calculating money management is somewhat more difficult than in the case of dollar accounts. However, there is a danger that in the event of the collapse of the Eurozone, this will also affect the pound rate.

In my opinion, those who live in the United Kingdom or expect global growth of this currency in the future should keep their funds in pounds.

The most optimal choice. Despite all the talk about the imminent collapse of the dollar (which has been going on for about 15 years already), this currency is only growing. Europe, like an obedient little dog, waits for orders from the White House. In any country in the world, any native knows what dollars are. You may love or hate America, but the fact remains: the U.S. dollar is the strongest currency right now. And it will remain so in the near future.

And of course the technical aspects: since 1 old point of movement in the main currency pairs with a lot of 0,1 costs about 1 dollar, it is most convenient to calculate money management on dollar accounts. All trading software is written for dollar accounts. Conversion when withdrawing funds can be avoided by opening a dollar account at a bank.

And here is something many people do not always think about. If you (like most visitors to the site) live in Russia and spend money in rubles, then by opening an account in dollars, you are effectively taking a long-term long position on the USDRUB pair. That is, you are already trading by the mere fact of opening the account))

Among the drawbacks, it is not easy psychologically to buy dollars for rubles. But think about what is more likely to happen: 1) The dollar-to-ruble rate will fall sharply; 2) The ruble rate will fall or remain at the same level. I somehow lean toward the second option.

So, the most reasonable option for a trading account is U.S. dollars. Nevertheless, whatever currency you decide to open a Forex account in, our mobile app will help you calculate the trading lot.

Sincerely, Pavel Vlasov TradeLikeaPro.ru