IB Ideal Forex Conversion

N

Nasdaq5048

I am new to IB. I checked the foex IB Ideal for forex conversion, the spread is 10 pips. For example, the euro is 1.2750@1.2760, canadian is 0.8910@0.8920.

Is it really that cheap to convert my money into foreign currencies? or is this quote just for forex trading. Because as far as i the banks and brokerages i deal with, the spread is anywhere from 50 pips (brokers) to 300 pips(retail banks).

Could someone please comment on this? Thanks a lot
 
Yes, these are real. IDEALPRO is even better, commonly with spreads of only a couple pips or less. Do note that there are also commissions, minimums, etc., which you can find on the website.
 
Quote from SethArb:

I think he is talking about coverting from one currency to another

( IDEAL )

and not trading for pips

( IDEALPRO )
More...

Just to make it clear, he can still use IDEALPRO for amounts over 25K.
 
I've used both. IDEALPRO is a cheaper bet, but base currency amount must be $25,000 or more.

One of my IB accounts is Universal, and conversions to other currencies are done automatically. I haven't checked the rate, but it's small enough it would not change the trade risk calculations.

One of my IRA accounts is IB, and I'm constantly hitting <T> and finding out that Cash accounts do not do automatic conversions. I then have to buy enough currency in the target market to do the trade. If over $25,000 USD I use IDEALPRO and, as you note, save a lot.
 
Quote from def:

Just to make it clear, he can still use IDEALPRO for amounts over 25K.
More...

So, if i have say 25K euro, and i want to withdrawl it to my bank account in US, i can still use idealpro?

Also, if i want to buy japanese equities, i can use idealpro to buy japanese yen and use the yen i bought from idealpro to buy japanese stocks?
 
Quote from Nasdaq5048:

So, if i have say 25K euro, and i want to withdrawl it to my bank account in US, i can still use idealpro?

Also, if i want to buy japanese equities, i can use idealpro to buy japanese yen and use the yen i bought from idealpro to buy japanese stocks?
More...

if you want to buy japanese equities, you don't need to do the conversion. just buy the equity and IB will provide a loan in yen. your profits or losses will be in yen and those can be converted back to USD via IDEAL or IDEALPRO.
 
Quote from def:

if you want to buy japanese equities, you don't need to do the conversion. just buy the equity and IB will provide a loan in yen. your profits or losses will be in yen and those can be converted back to USD via IDEAL or IDEALPRO.
More...

Say i want to avoid the free falling dollar. So, i buy the japanese equities in yen. Can i exchange my USD in IDEALPRO and buy japanese stocks using the yen i bought from IDEALPRO?
 
You must log in or register to reply here.
Back
Top