Is IB really that bad?

Quote from ids:

Bitstream,

You keep euros and pounds and buy paying dollars. IB loans you these dollars and you are paying interest on this loan. Base currency is irrelevant. It is just a way to calculate in one scale. If you want to avoid a loan, you can buy dollars on IDEAL or IDEALPRO and use them for purchase of stocks. Of course, you will take a risk of changing currency rates. Now you are avoiding this risk. You cannot do it for free. Reference: http://www.interactivebrokers.com/en/accounts/universalAccount.php
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in one of your paragraphs its actually stated that if the currency is different than the base u will have the choice between loan and conversion. + the loan rates are not disclosed anywhere as far as i see.


how do i do the conversion trough ideal and will it be permanent or have i got to do it for every transaction.



thx
 
Quote from Bitstream:

in one of your paragraphs its actually stated that if the currency is different than the base u will have the choice between loan and conversion.


how do i do the conversion trough ideal and will it be permanent or have i got to do it for every transacion.

thx
More...

Whats your base currency?
What are your base assets denominated in?

If they are the same, then you shouldn't have any issues.

Just be aware if you're holdind other currencies, you have to deal with interest rate differentials, in addition to no positive accrual on your first 10k. that being said, if you're under 10k, you're probably better off simplifying your account and getting to all 1 currency.
 
Quote from scriabinop23:

Whats your base currency?
What are your base assets denominated in?

If they are the same, then you shouldn't have any issues.

Just be aware if you're holding other currencies, you have to deal with interest rate differentials, in addition to no positive accrual on your first 10k. that being said, if you're under 10k, you're probably better off simplifying your account and getting to all 1 currency.
More...

i said earlier my acct is funded with euro/pound but the base is in dollars, meaning i trade in $, my statements are in $, etc.

i know about the rate diff and no accrual on first 10k. i have different currencies because once i opened my acct i funded it with pounds then added a substantial amount in euros later. my problem with $ is the costant decline in the currency and the terrible outlook due to feds mechanics. will have to think about it.
 
Quote from Bitstream:

how do i do the conversion trough ideal and will it be permanent or have i got to do it for every transaction.
More...

You just open the pair (USD/EUR or EUR/USD) in cash that you want and you buy or sell an amount sufficient to cover your margin needs. In your account your euro will decline and your usd will increase. Its permanent until you convert the money back.
 
Quote from kiwi_trader:

You just open the pair (USD/EUR or EUR/USD) in cash that you want and you buy or sell an amount sufficient to cover your margin needs. In your account your euro will decline and your usd will increase. Its permanent until you convert the money back.
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thx.
 
Quote from Bitstream:

i said earlier my acct is funded with euro/pound but the base is in dollars, meaning i trade in $, my statements are in $, etc.

i know about the rate diff and no accrual on first 10k. i have different currencies because once i opened my acct i funded it with pounds then added a substantial amount in euros later. my problem with $ is the costant decline in the currency and the terrible outlook due to feds mechanics. will have to think about it.
More...

ah..

ok. lets say you buy 100 shares of aapl. that means you are SHORT $8488 USD/gbp, long 100 shares of Aapl. You obviously don't earn gbp or eur interest on that 8488, and you have to pay excess interest (1% annual lets say) for usd/gbp differential.

you could just buy $8488 USDGBP on ideal to get your net USD position to neutral, but remember then you'd be assuming a larger short GBP position ($8488 USD worth... like 4352GBP) and you'd have to pay interest on that position, or if it is NOT in excess of your cash GBP position you just don't earn interest on that amount.

If you look at your acct, you should be at negative accrual for your USD short currency position, and positive accrual past 10k of whatever is left of GBP or EUR.

long equities = short underlying equity currency.
 
Quote from scriabinop23:

ah..

ok. lets say you buy 100 shares of aapl. that means you are SHORT $8488 USD/gbp, long 100 shares of Aapl. You obviously don't earn gbp or eur interest on that 8488, and you have to pay excess interest (1% annual lets say) for usd/gbp differential.

you could just buy $8488 USDGBP on ideal to get your net USD position to neutral, but remember then you'd be assuming a larger short GBP position ($8488 USD worth... like 4352GBP) and you'd have to pay interest on that position, or if it is NOT in excess of your cash GBP position you just don't earn interest on that amount.

If you look at your acct, you should be at negative accrual for your USD short currency position, and positive accrual past 10k of whatever is left of GBP or EUR.

long equities = short underlying equity currency.
More...


yep, that sounds correct.
thx.
 
Hi guys.

In my opinion, IB is the best broker. Ok, charts are poor, but we may get this very fine API: www.IBcharts.com

The commisions are the best.

All the problems that most people post here in ET about IB, i have never experienced. Never had problems with IB. The costumer service is just very fine, simple and quick, all done by net.

The problem of the Bitstream is just that he purchased a stock in a currency that he doesn't own in his account. So, of course, is very logic, IB must charge his loan for the stock.

Buy.
 
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