Hi Guys,
I plan on investing about $10,000 in an etoro copy traders. With Etoro, the platform only accepts USD, so it will convert the AUD into USD which they will take a cut which is fine.
My main concern is the exchange rate, the current is 0.68 United States Dollar so i will basically have $6,800 USD (excluding fees).
Assuming i make 8% per year on this $6,800, thats about $7344 USD in a year. If the USD tanks to back to 2007 levels 0.87 (near parity) this would basically wipe out most of my profits if i convert back to AUD and took out the $ from my etoro account?
So would seem to be a hidden risk.
Cheers.
I plan on investing about $10,000 in an etoro copy traders. With Etoro, the platform only accepts USD, so it will convert the AUD into USD which they will take a cut which is fine.
My main concern is the exchange rate, the current is 0.68 United States Dollar so i will basically have $6,800 USD (excluding fees).
Assuming i make 8% per year on this $6,800, thats about $7344 USD in a year. If the USD tanks to back to 2007 levels 0.87 (near parity) this would basically wipe out most of my profits if i convert back to AUD and took out the $ from my etoro account?
So would seem to be a hidden risk.
Cheers.
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