The United States Dollar, often referred to as the US dollar, is the official currency of the United States and its territories. The US dollar is the most traded currency in the world and is most used for international transactions. It is considered “the world currency”. Many countries currencies from around the world are pegged to the US dollar which effects the value of their currency when the US dollar rises or goes down. As of 2017, the amount of US dollars in circulation was $1.58 trillion dollars. With the currency being so widely accepted and popular among countries from around the world, it is highly accepted as payment from many online businesses around the globe, including most online trading brokerages.show more
The symbol or sign used to represent the US dollar is the classical “$”. This dollar sign is used by various currencies in the world, but most commonly associated with the US dollar. As well, the “$” is sometimes paired with “US$” to specifically indicate the currency it’s representing. In both cases the sign/symbol precedes the currency value. Also, the US dollar has a code being (USD). This code is primarily used to represent the currency in the global foreign exchange market. Some other common names for the US dollar include; American dollar, and simply the dollar. The US dollar is broken up into subunits out of 100 which are called cents and are represented by this sign “¢”. Since the US dollar shares its symbols with other dollar currencies, including the Canadian Dollar and Australian Dollar, it can be easily mistaken for another currency if the currency is not clearly stated. It’s very important to keep this in mind so you know which currency you have selected or that is accepted on the online trading account you are using.
Exchanging US dollars is very simple and widely available all over the world. However, it is not normally needed when trading with online brokers as most accept the US dollar for deposits and withdrawals. However, it can be done, and currencies can be exchanged into US dollars quite easily as well. The two most common methods are directly through the brokerage themselves, or through a third-party currency exchange service. Exchanging through the brokerage is the easiest and fastest method while only charging a small fee. However, not all brokerages offer this option. Which means you will need to convert your funds through the online exchange for a small fee.
Traders dealing in United States dollars are blessed with having many options for depositing and withdrawing funds to their online trading accounts. For instance, if a trader has a US dollar bank account, they can deposit funds via bank transfer, wire transfer, debit/credit cards, cheques, and so on. US dollar bank accounts are available in countries all over the world, so traders should easily be able to obtain one. For the ones who don’t, they can deposit and withdraw funds through various e-wallets.