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multi-currency investment account RRS feed

  • Question

  • I was wondering if it's possible to hold investments of different currency within the same account, at the same time have their transactions kept in their respective native currency without conversion to the base currency of the account. I am using 2007 Deluxe, and the way it is now, I have to open a separate investment account in Money for each currency, even though all the investments are held under the same account in the brokerage .
    Saturday, February 19, 2011 1:27 AM

All replies

  • Let's think about how such a real account would work. Suppose you inherited the account and it contains 100 shares of GBco and 100 shares of EUco. You receive a dividend of 50 GBP and a dividend of 50 euro. Are you thinking that the account will show two separate cash balances? Or do you expect your broker to convert the euro to GBP?

    Suppose you are trading from the UK. You buy 1000 shares of Angriacorp for 1 million Angrean dollars on 2008/7/7 (worth 1000 GBP at the time) and sell those shares for 2 million Angrean dollars on 2010/7/7  (worth 1000 GBP at the time of sale). I guess you would have booked a profit of 1 million Angrean dollars. How are you going to report that to HMRC? I am thinking you would show that as a buy for 1000 GBP and a sell for 1000 GBP.

     What I think you would want to do is to hold the various securities from the various countries in the single account, but would convert all cash transactions to and from your home (account) currency at the time of that transaction. I think Money can do that.

    Saturday, February 19, 2011 9:39 AM
    Moderator
  • If the "base" currency for a particular account in Money is in US$, then I bought a stock on TSX, I don't want Money to convert that transaction to US$, because that transaction was made in CAD$. Even after that position is closed, I am still keeping the proceeds in CAD$ rather than the base currency of US$. I have real accounts that work exactly in that manner. I use Money to track investment transactions. Reporting gain/loss for taxation is an different issue entirely.
    Sunday, February 20, 2011 3:54 PM
  • If the "base" currency for a particular account in Money is in US$, then I bought a stock on TSX, I don't want Money to convert that transaction to US$, because that transaction was made in CAD$. Even after that position is closed, I am still keeping the proceeds in CAD$ rather than the base currency of US$. I have real accounts that work exactly in that manner. I use Money to track investment transactions. Reporting gain/loss for taxation is an different issue entirely.


    So you simultaneously have CAD$ and US$ cash balances in the same account. Money won't do that. Imagine trying to reconcile the cash account. Imagine trying to reflect the balance as exchange rates fluctuate. I really can't picture how that all fits together.

    What you could try experimenting with is to have a single investment account and to specify a different bank account as the source or destination of funds for a Buy or Sell. That field becomes visible in the investment transactions register under the Quantity column when you are in multi-line format (Ctrl+T toggles that). I don't understand how that is all going to fit together, but it would be a way of handling more than one currency balance.

    Trying to understand how your actual account actually works is interesting. I don't see it so far. I don't know that you will be able to fit that behavior into Money's capabilities.

    For me, Money fills out my schedule D (capital gains form for US taxes), and to me that is its most important job for an investment account. Looking at the performance info is important too. But if I bought a TSE listed issue, I would want the performance to be measured in my home currency. If somebody bought a gold coin while vacationing in Dubai, would he want investment performance to be forever tracked in dirham, or would he measure the performance of this investment in his home currency? If he bought another gold coin in a different currency, the next week, would he want to measure each coin's performance according to the current exchange rates? I wouldn't think so.

    Sunday, February 20, 2011 8:03 PM
    Moderator