In short
- Fund and hold your account in the same currency as your bank account.
- Profits and losses on non-GBP pairs are converted into your base currency.
- Conversion mark-ups are a hidden cost — check them.
Where conversion happens
- Deposits and withdrawals: sending pounds to a USD account means a conversion each way.
- Trade P&L: profit on EUR/USD is in dollars and is converted to your base currency.
- Fees and financing: charged in the instrument currency and converted.
Example
You deposit £5,000 into a USD account, and the broker applies a 0.5% conversion mark-up: that's £25 on the way in and another 0.5% on the way out. A GBP account avoids those two conversions entirely.
When a non-GBP account can make sense
- You earn or hold savings in dollars or euros
- You mainly trade USD-denominated instruments and want P&L in dollars
- The broker only offers certain account types in USD
What to check
- Which base currencies the broker offers for UK accounts
- The conversion mark-up on P&L and on deposits
- Whether your bank or card adds its own foreign-exchange fee
Frequently asked questions
What is a base currency?
The currency your trading account balance is held in. Profits, losses and fees are converted into it.
Can I change my account's base currency?
Usually not on an existing account, but many brokers let you open an additional account in another currency.
CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.