How many different securities that pay dividends do you have in your portfolio? The dividend dates are publicly available information and it’s mostly the same date/dates every ear.
Why do you want to do this? This just doesn’t make any sense to me. I withdraw money from IB when I need it to pay something and don’t have enough cash at hand, for tracking dividends I generate the activity statement, for sure way easier than transferring it out, converting it or whatever.
Why do you need to trace them? What’s the reason?
In my opinion, IB has excellent exchange rates and the 2 USD commission is peanuts, except if you transfer very small amounts, but then I would just wait until you have a large amount and convert it then.
I honestly don’t see any benefit of this whole traceability of dividends, please enlighten me
I have for instance 6-7 different positions (ETFs and shares).
Somehow, I was never looking at the dividends so far (and it was also not easily visible and available to me), so just now I only realized that my selections were very bad at paying dividends. And I would like starting now changing that slowly going more into positions with higher dividends - but without a straightforward and simple monitoring system for me would be difficult to understand exactly my profits from dividends. That’s why.
For example in UBS/ Post Finance they are paying the dividends directly at your account so you can see the credit everywhere immediately…Also there is the transaction overview / statement so you can see all the actions (debit/withdrawal) from your account in one click… that what I am just kind of missing from IBKR with one click
Besides generating an activity statement in the app, you can activate sending of monthly activity statements per E-Mail. Don’t have to click anything at all.
What’s the reasoning behind this?
Paying out dividends is the worst use of excess cash for a company, this means they don’t have any better way to deploy their money.
It’s the same at IB, the dividends are paid immediately to your cash accounts. So if your balance suddenly changes, you got a dividend.
In order to wire these usd dividends to Revolut, you will still need to know when they will get paid in IBKR. So for me it won’t solve your issue.
Revolut spot is not as good as the spot price on IBKR for usd/chf exchange rate. I have done the test on 12-25kusd and it beats Revolut by 120-250 chf (including the 2usd conversion rate).
Lastly, I will suggest you to plan a quarterly budget rather than monthly. It will give you some margin and optimise transfer/exchange costs.
There is in the Mobile App.
Go to Account tab, then scroll right at the top to MKT: Value, there is an entry Dividends Receivable which is the actual cash you get that month from dividends, after withholding tax has been taken off.
Its gets set to 0 the following month.
It also means they’re not deploying it in any worse way. Nor are they forced to use that cash for their ongoing operations.
May the company have run out of ideas or projects to better invest? Possibly. But by distributing it to shareholders, they‘re giving you, the shareholder, the opportunity to invest it elsewhere - even somewhere you (or another company) have more expertise on than the dividend payers.
Dividends are (usually) distributed from earnings and being highly profitable is actually a good sign for their current business. If a company can distribute excess cash to shareholders, it can operate at more efficient size and input/output combinations than if they need to spend that same cash on its ongoing operations or even uncertain „growth“ or expansion projects.
„We are earning excess cash - what are we going to do with it?“ doesn’t necessarily lead to better internal use of that cash. It is the proverbial nice problem to have.
I think I successfully added my revolut account to the list of accounts for USD withdrawal. I did go through the process of setting the details that my revolut app specifies (ACH, not SWIFT). AND added Metropolitan Bank as correspondent bank. Then IB asked me to upload my passport and said they will wire two small random amounts that I have to fill in a form when they arrive.
It took a couple of days until they were there but finally everything seems to have worked. I did not yet transfer USD to Revolut but I am confident that this will work.
IB tells me that the first outgoing transfer per calendar month is free and from the second it’s USD 1 per transfer
Excellent news. In addition to the new currency options themselves, this seems to clear up any doubts about whether Wise and their T&C allow transfers to/from IBKR.
Edit: though going back to the withdrawal options: I am wondering if this means I can withdraw foreign currency (such as USD or GBP) from IBKR to Wise for free (at least for the first withdrawal each month) and then spend it using Wise‘s debit card?
Just the reasoning behind the high dividends shares (to reply to @Burningstone )
Typically, I got in the space as a long term investor and not trader (more kind of DCA and mustachian type and not to play the market or time the market type of investor…)
Considering this fact and given the very volatile environment in the last years and the high risk of someone to be kind of trapped for many years with his portfolio - that happens to me somehow as well - (otherwise should realise a lot of losses to get out) … I tend to think that in case you are trapped for the long term better to stay trapped with some high dividends positions - so at least you get a kind of passive income every year while you don’t close your positions - and in the long run should be always beneficial
So, finally if we just want to convert USD or EUR to CHF and withdraw from IBKR - better to make the exchange in IBKR directly and after transfer out directly the CHF from IBKR?
Is it better in exchange rates generally from both Wise & Revolut?
So I just linked my Wise account to my IBKR account, and Transfer to Wise Balance is now available for me in IBKR’s withdrawal interface. Clearing up the doubts about Wise’s T&C is probably the main benefit. It does simplify transfers in supported currencies a bit - but it is somewhat limited:
Beyond the first free transfer every month, “Subsequent withdrawals using this method will incur a fee at IBKR”
IBKR can receive or make outgoing transfers only in USD and EUR using this method. Although I could use my more “exotic” currency balances at Wise to make such deposit, with Wise converting the currency.
Withdrawing from IBKR to my Wise CHF balance is not supported. I could still make a normal wire transfer from IBKR, but this would process via SWIFT (free on IBKR’s side on the first monthly transfer, but possibly incur charges in transit or at the receiving bank), and probably be relatively slow.
I’m a bit at a loss why the Wise integration doesn’t support GBP. IBKR is based in the U.K., banks with a U.K. bank, and Wise is also based in the U.K. I could still make a deposit or withdrawal in GBP without the Wise integration, I suppose. (As I could to make an EUR deposit to IBKR, with Wise converting from GBP, but that’s more expensive than converting at IBKR in most cases). Or withdraw using BACS, as I‘ve done to Revolut.
Other than GBP, nothing really unexpected there - but I would have loved a non-SWIFT transfer to a Swiss CHF account. From a functionality point, the integration is convenient (certainly better than having to fill in transfer detail on Wise’s side) but no game changer.
I recently got an email from Revolut ‘we are updating our conditions’.
Incoming domestic USD transfers (I guess thes mean ACH) are now CHF 10.- per transfer.
I will probably need some GBPs in the next future (let’s say ca. 20-25k) to do staggered payments to the UK and I was wondering about the best way to manage such transactions without being (too much) scammed.
I currently have IBKR and Revolut; does anybody know:
if it is possible to transfer from IBKR to Revolut in GBP (and related costs)
if it is possible to pay from Revolut GBP account to any UK bank account (and related costs)
Are there any better ways to do this ? I might also open an account in GBP at PostFinance (I already have a bank account with them) but then I would close it after having completed the transactions → I’m not sure it is worth the hassle (I’m pretty sure that it won’t be possible to close the sub-account online…)
Yes, that is another option, I might open a Wise account and transfer CHF and convert there, it doesn’t seem that expensive; I see that it charges 5 CHF every 1’000 CHF hence a bit more than 100 CHF for the amounts I’ll have to transfer.
Actually I was thinking to convert the whole amount in one shot at IBKR and then execute the payments whenever required → the conversion would be cheaper (the usual 2 CHF) and I wouldn’t be exposed to currency pair fluctuations, but I have no idea regarding the GBP payments to the destination account (be it from Revolut or PostFinance)
I find the best way ro treat such transactions to be through Wise. First you convert to GBP, EUR etc in IBKR and then you transfer the exchanged amount to Wise without fees, apart from the exchange fees (around 2 CHF for usual amounts) in IBKR and one free withdrawal per month. From Wise, as long as you dont convert, all SEPA transfers are free (GB iban included). Probably revolut works the same but Wise seems more trustworthy for such amounts plus you can link it to IBKR.
By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, tu confirmes avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/
Durch das Lesen und die Teilnahme an diesem Forum bestätigst du, dass du den auf http://www.mustachianpost.com/de/ dargestellten Haftungsausschluss gelesen hast und damit einverstanden bist.
