Interactive Brokers: Liquidation Warning

Doesn’t splitting it up like that lead to diseconomies ? Meaning smaller borrowing potential and increased risk of margin call


I wrote it wrong lol. I meant in a separate one, not a margin account :smiley:

Can you elaborate on this a bit further? What options do I need to chose? I can’t seem to find the option for internal transfers.

In the Webportal on the top go to “Transfer & Pay” and choose “Transfer Positions”.

Now you should see three options “Incoming”, “Outgoing” and “Internal”, choose “Internal”. Afterwards it should be self-explanatory.

Yeah I should have looked at the FAQ… You need to fund your new account first. So I’ll just transfer like 100CHF or so… Sorry, should have looked that up.

So, did you get an answer?

Those margin accounts are a bit frightening imho.

Yeah, apparently I missed the daily closing time for currency exchanges, so I lost one day. Then, apparently, IBKR takes one day to “validate” the currency exchange. And then, unfortunately, it was a Friday, so I got charged CHF interest for Saturday & Sunday on top of that. Equals 4 full days of interest for a large sum of CHF!

So be cautious with big foreign currency sums, even if you supposedly convert them immediately, as I did.


This still doesn’t make sense to me. You said it was below 50k and below CHF 50k IBKR doesn’t charge any negative interest.

For CHF 7 over 4 days, your CHF balance would have to be at least CHF 180k (50k no negative interest, 130k at -0.486% → CHF 631.80 per year → CHF 6.92 for 4 days)

1 Like

Yeah that has been confusing for me too. So basically, first I deposited a larger amount (>50k). A few weeks later, I deposited an amount <50k. After that second deposit, I was charged the interest. So i wrongly assumed the interest’s been charged due to my second deposit, not my first. The reason’s that IBKR will charge you the interest a lot later than the time of your deposit, and will not indicate what exactly you’re paying the interest for. You can figure that out by creating a special interest report on IBKR.

Anyway, I learnt a lot, and customer service was friendly, so I’m still VERY happy with IBKR compared to extortionist Swiss brokers :grin:

Maybe I wouldn’t have had the whole currency conversion delay with a margin account? Also, isn’t it a little outdated to have closing times for currency conversions in the evenings and weekends? On the other hand, I think trading directly at currency markets also gives you the best exchange rate, so maybe I should have just timed my conversion better.


In my opinion you should just not have a large cash balance at IBKR, I mean why are you doing this in the first place? When an investment opportunity arises it’s a matter of a few hours to transfer funds to IBKR.

1 Like

Well that’s the thing, I placed the order to convert the CHF to USD as soon as I got notice the sum had been deposited. I subsequently also invested the USD into ETF the very same day.

But there was a huge delay in actually executing my currency conversion order.

The delay was due to currency market opening times, IBKR taking time to clear the order, and the two weekend days where no currency conversions take place.

I think it charges you once a month, on the last/first day of the month.

I don’t think so. If you don’t make it to settle the exchange on Friday, it will get settled on Monday, with or without margin account. Margin does not make the forex magically work different, I guess. One more thing to add to the mix is how the trades for some asset classes get settled 2 days after the trade date. Don’t know why it has to be like this, but it’s the standard.

I think the only thing a margin account allows is to trade with borrowed money. So you want to buy some stock with USD that you don’t have, you can do it. But if you send a very large CHF cash deposit, it will yield negative interest until you sell it and the trade has been settled (again, I guess).

1 Like

I guess you’re not with Postfinance then :grin: It’s 24h at least, sometimes up to 3 days.

I admit to sometimes trying to take advantage of some minor market corrections at the end of the month, but Postfinance successfully prohibits me from any kind of market timing :grin: