IB US stock buying currency requirements

N

nitinat

Hello,

I am new Interactive Brokers customer from Canada, and was wondering how my buying power works and what are the currency requirements for trading US stocks. What currency should I keep my funds in for trading US stocks?

Do I have to convert CAD to USD to buy US stocks, or there will be conversion done by IB every time trade is done?

Thanks!
 
You can buy USD at anytime OR IB will convert to USD for every trade.

To eliminate any negative currency balances simply buy that currency- negative currency balances might occur when a trade at a specific currency is closed at a loss.



:)
 
I would just be aware of any conversion fees. I think IB has pretty low spreads on forex compared to other options but going in and out of USD/CAD can add up when buying back and forth.

On the other side you also have currency exposure when in the trade if just letting IB to the conversion or if you hold your account in USD it's also exposed.

Edit, actually seen here that they state they do not automatically transfer currencies.
https://www.interactivebrokers.ca/en/?f=/en/general/education/faqs/canadaFAQs.php?ib_entity=ca#12
 
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