I wanted to know your opinion regarding how to emulate multi-currency or multi-commodity accounts.
I understand this is ultimately subjective, but I hope someone can provide me some guidance.
I have multiple bank accounts with my Bank, denominated in different currencies. Each account has a distinct account number and I receive an individual account statement for each one of them.
Question: Should I (option 1) create/use a separate account in ledger (Assets:My Bank:EUR and Assets:My Bank:USD) OR should I (option 2) have only one account (Assets:By Bank) which then has holdings in both currencies?
I am currently using option 1.
I have an online wallet (imagine something like Paypal, Skrill, or Revolut) where I hold multiple currencies and I can do instant currency exchanges. For this type of services, I do not receive any statement, although I could download one on-demand. Depending on the specific service, I may or may not be able to download individual statements for each currency.
Question is the same as in Case #1. However, in this case I am using option 2.
I have an online brokerage account which I use to buy commodities (let's say, corporate stocks). In this platform, I will have a portfolio of multiple stocks AND I may have a balance of multiple currencies as well.
Question is the same again. In this case I am using option 2 too.
So, at the end of the day, I would like to know how do you decide whether to use multiple single-currency/commodity accounts or a single multi-currency/commodity account?
Also, what do you find to be the advantages and disadvantages of each approach.
Many thanks, POliveira