USD fluctuations

[pollux75]

I have a bit of a stupid question. I'm living in the UK but only trading US stocks. As you can imagine, I've been hit hard by the USD fall. I'm currently trading with E*Trade and very happy with it, but I was wondering if it wouldn't be more convenient to trade with IB.
My understanding is that if your base currency is say GBP, when you buy a US stock, IB creates a margin loan. I might be a little bit thick, but I can't see any advantage over having a base currency in USD, so I don't think this would actually help, especially since I only trade in USD for the time being.

I think where an IB account might be useful is in that allows you to buy certain products like futures on the USD index I believe that would allow me to hedge my positions. Is my reasoning correct?

As you can see, I'm not very familiar with the forex markets. Your help is much appreciated.

 

[JonnyT]

The advantage is that if you are a UK resident and day trade then every day you have pounds in your pocket.

If you have a USD base then you have lost 25% of the capital this year...

If you have a GBP base then you lose (or gain) nothing from USD fluctuations.

I have a GBP base....

JonnyT

 

[pollux75]

The advantage is that if you are a UK resident and day trade then every day you have pounds in your pocket.

Thanks for your reply. I tend to keep my positions for longer than a day so I guess I wouldn't really gain much from it.

 

[First Wave]

IB

I have been using IB for a year in the US, and have no complaints.

USD did put in a double bottom, with positive divergence Friday.