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Reg-T margin account actually seemed easier to set up than the cash only.
DionysusToast
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If you have a USD account and you trade non-USD products the profit/loss will be placed in your account in the currency of the instrument and you will be able to convert it back to USD at your leisure.
Yes, as far as I can tell it won't allow me to convert currencies. And because my account is set to a base currency of GBP and my initial cash input was in Euro it appears I can't buy anything at all. I tried changing my base currency according to instructions from their support but it hasn't worked.
The upgrade I meant was enabling forex trading (a form of investing I didn't really want to do), but it hasn't helped - I still can't use it to convert currencies.
Maybe a margin account is the way to do this in the IB system, however I don't want to trade on margin and am therefore looking at other stockbrokers instead. I don't understand why such a simple thing (buying a share on the ASX) is so impossibly complex.
I actually have Euros and am trying to trade AUD products. The problem is I can't trade anything, nor convert any money.
DionysusToast
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odd - mind you - I have no idea what a 'cash account' is with IB - I can't recall the option when I opened the account.
Best to drop them a message on the IB message system. They are good at replying in my opinion.
Best to drop them a message on the IB message system. They are good at replying in my opinion.
As I said I've already spent over 2 hours on 2 separate days with their customer support (chat support), nothing's improved.
FWIW I've opened a ticket now in the ticketing system. If they can't resolve it and show me a way I can do straightforward trades like this in future I'll have no choice but to move to another broker.
FWIW I've opened a ticket now in the ticketing system. If they can't resolve it and show me a way I can do straightforward trades like this in future I'll have no choice but to move to another broker.
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Adamus
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In my experience their support is not much good. They will always follow the line of least resistance in looking for a solution for you and if you get stuck, their best response seems to be just to repeat themselves continually.
However changing your base currency to AUD should be relatively simple and quick. Presumably it will change all your cash to AUD - although I'm not sure, and I have no idea what rate they will use or what commission on the exchange they will charge.
However changing your base currency to AUD should be relatively simple and quick. Presumably it will change all your cash to AUD - although I'm not sure, and I have no idea what rate they will use or what commission on the exchange they will charge.
goodtyneguy
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From the IB Web site: http://www.interactivebrokers.com/en/trading/pdfhighlights/PDF-Forex.php
Beginning with version 910, when you submit an FX order, TWS will attempt to identify whether you want an FX pair trade or a currency conversion, based on your positions and balances, and will ask you how you want the currency trade to be considered. If you elect “Currency Conversion,” TWS will create the order to reflect this objective. You submit the order manually, and when the order fills your virtual position in the FX Portfolio section will not be affected. Previously, conversions would affect the virtual position and your only option was to manually adjust the position and cost to negate the completed conversion.
If you do a low value (amount) currency conversion it will be done in Ideal as the spreads are greater.
Jack
Yeah this is exactly what I'm finding.
Now why couldn't their support tell me this?
- First they tell me it's because my base currency is GBP not EUR, so I change it to EUR.
- The next day however the change still hasn't worked (it shows base currency EUR in account management but still base currency GBP in WebTrader). They tell me to wait another day (over 4 days now and the change hasn't taken effect) and then pass me on to another support person who tells me the underlying problem is that I don't have Forex trading enabled. So I enable Forex trading.
- Wait until thursday (yesterday) and Forex trading is approved. But again no luck - same error messages as before. So I post here and also then open a ticket with IB. I get a call last night (their support people are at least responsive) and the guy tells me I need to upgrade to a margin account to trade in other currencies than base. So I've done that too.
- Now today people on this forum (who've been more informative than their support
) seem to have found that currency exchange is restricted to minimums far higher than I'll be trading.
So the question is, even if a margin account allows me to effectively borrow the 3500AUD for my share purchase from IB how will I pay them the money back if I can't convert any or my EUR?
And when I sell the shares (let's imagine I was lucky and my 3500AUD is now 3800) what do I do - I can't convert it to GBP or EUR or anything so I can transfer it back out of my account?
I'll try one more time with IB support on the phone, trying to do the trade as I speak to them. If that fails I don't see what more I can do besides close the account and move to another broker.
Rip it up and start again.
No one on IB help has been able to tell you about 'Ideal Pro' minimum lots because (i just found out yesterday) that it no longer exists, there's no longer different fx routing for conversion vs. trading. Basically theer's only one fx system, with the tight trading spread. If your order is small then it will be designated as and "odd lot2 and will be filled slightly away from the market.
It sounds like you're not really getting on with their setup at all, if you're only trading the cash market on a longer term basis i would probably look at going to anther broker. But if your looking at doing slightly more intense stuff i think to lose IB's functionality would be a "can't-see-the-wood-for-the-trees" type of mistake.
Thanks. Good information. Does anybody know what "slightly" might mean in pips??
Thanks
Hittfeld
They told me a max of 3% away from the market, but the fill i got was pretty much where the old IDEAL prices used to be. Less than 1% away from market. In pips probably call it no more than one big figure away either side. So call the spread 2 big figures at most.
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