Koruna, euro or dollar as the base of a trading account

[FXS London Scalper]

When opening an account, many brokers let you choose the base currency. For a trader in Czechia, the options often include euros, dollars and sometimes korunas. The choice affects conversion costs and how results look.

A worked example: a trader depositing korunas into a dollar account pays a conversion fee at deposit and again at withdrawal. If each conversion costs half a percent, a round trip costs about one percent, regardless of trading results.

The account currency also affects how profits from different pairs are converted. Profits on EURUSD are naturally in dollars, while profits on EURGBP are in pounds and get converted into the account currency at the current rate.

There is also an exchange rate effect: a dollar account loses value in koruna terms if the dollar weakens, even with no trades.

A practical approach is to match the account currency to the currency you hold and spend, unless the broker's conversion rates are unusually favourable.

Which account currency do you use, and why?