Account currency
The currency shown by the bank or brokerage tells you how the account reports value.
Focused decision guide
How can U.S.-dollar exposure affect a Canadian retirement plan?
A Canadian can hold an investment in Canadian dollars while the businesses underneath earn much of their money elsewhere. Account currency, trading currency and economic exposure answer different questions.
Understand the choice
What changes—and what you give up.
Trading currency
The currency used to buy or sell a security affects settlement and possible conversion costs.
Economic exposure
The countries and currencies of the underlying assets help determine how exchange-rate changes may affect value in Canadian dollars.
Before comparing
The assumptions that matter most.
- Whether a fund hedges currency exposure
- Where the underlying companies, bonds or property are located
- Your future spending currency
- Conversion costs, taxes and account rules not shown by a broad percentage
Test the question
Use the guide with a planning tool.
The checkup records estimated exposure but does not forecast exchange rates or recommend hedging.