More GBP

Posted on April 27, 2007
Tags: Investing |

There  was a bit of slump in the GBP today so took the opportunity to increase my holdings. This isn’t a trade but more of a long term currency diversification as the USD has been sliding forever. It’s great if you earn in a foreign currency and spend in USD but at some point I may need to take money out of the brokerage account. I just wish I started doing that years ago instead of just last year.

Comments

4 Responses to “More GBP”

  1. Carlton on April 27th, 2007 8:59 am

    What about buying short term UK government bonds instead? Get some interest on top of the currency.

  2. eyal on April 27th, 2007 9:07 am

    IB pays interest on all currencies in your account. Incidentally, it’s a couple of basis points higher now than on USD.

    Another reason is the currency purchase doesn’t reduce my buying power as it’s still considered cash.

  3. Carlton on April 27th, 2007 9:45 am

    Right, but I understood it is only when the cash per currency is over 10K USD? Or did I get it wrong? I believed that if I hold $8K in GBP, no interest, but I can buy bonds or bond ETFs for less.

  4. eyal on April 27th, 2007 9:51 am

    Yeah there’s a 10K min requirement

    I haven’t looked at bonds or bonds ETF for GBP or EUR. Might be worth checking if u’re planning on exposure below the 10K mark.

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