Interactive Brokers Q&A [2023]

Investing / Brokers
139

Got it. Keep it going, though :+1:

IF you transfer CHF, IB will credit you CHF. Even if base currency is USD.

You could also

  • buy something in CHF
  • get a family account and split fees with your account
  • Accept pretty high one-time fees for the conversion
140

Hi. Thank you so much. I think, it’s not worth worring about it too much. But for your information: I transfer CHF from my Swiss bank to IB. Usually chunks of around 10’000 or so. I change CHF to USD on IB. Usually ~$2 of fees. I transfer $100 to my kid’s account in IB (sub-account of mine, I see both when logging in). With this $100 I buy 1 share of VT for my child. I like this way and would like to keep it. But I’ll make sure in the future that I have a little more than $5 cash left in the childs account.

143

IBKR doesn’t charge the TER on your ETFs, because they are just the broker.

Expense ratios. This expense is measured as a percentage of the amount you have invested—for example, 0.50%.
You won’t see it on your statement; it’s deducted from your returns before they get to you. So, for example, the investments in your ETF might return 5%—but if your expense ratio is 1%, you’ll only see a 4% return, meaning you’ll lose one-fifth of your return right off the bat.

The money from the ETF expense ratio goes to the investment company to pay management and administrative costs, which could vary widely depending on the ETF and company.

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145

I bot VT ETF - My account is a cash account. It had only CHF Cash.
IBKR bought the VT and afterwards did an automatic FXCONV USD.CHF.

Is this a new feature? I thought I have to do manual conversion.

Other question:
Ther was only a fee of 0.35 for the buy of VT ETF. No fee for the FXCONV.
If I do a manual FXCONV, I have to pay 1.8 USD = 2 CHF fee.

Why this difference?

Also: I manualy did an FXCONV afterwards, to get USD cash.
Next I bot again VT. IBKR did not use my USD cash, they did again an automatic FXCONV aftewards


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146

Fee for manual FXCONV

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147

Welcome!

Probably the trade was not settled yet

1 Like
148

Thanks for the pointers!

Is there no possibility to know, when my trade has settled?
Just wait approx. 2 days?