Hi peeps!
Do you have any tips on efficiently transferring USD from IBKR to Kraken while minimizing currency friction?
IBKR won’t allow transfers to Kraken as it’s not a bank account in your name.
Neon doesn’t take USD.
Idk about Revolut but Wise blocks transfers to Kraken afaik.
Thanks!
Is there a reason to hold specifically USD on Kraken?
If you just want to hold cash there to buy quickly later, or want to buy crypto right now, why not use EUR? Conversion at IBKR is really cheap, volumes on Kraken are comparable for both currencies, SEPA transfers are often free.
You just need a EUR account. There are quite a few free or cheap options at traditional banks.
Thanks! That’s because my portfolio at IBKR is in USD. I’m looking for a solution to transfer USD directly, without converting funds into another currency, which would inevitably result in fees and forex losses.
The only solution I can see so far would be going to a traditional bank that offers USD accounts (like UBS). But that’s not practical or quick.
2 CHF is less than the price of a coffee, is it worth optimizing?
Which will be international USD wire, and account fees. As non-resident alien, traditional banks in the USA seem to require an ITIN (individual taxpayer identification number), which you apparantly can’t get without having businesses in the USA. Nontraditional services require a bank account.
You could also directly buy some crypto on IBKR. Fees seem okayish at first glance.
I just don’t think using USD is the cheap or fast option. The EUR competitor is just too cheap (1 cheap conversion at IBKR only).
At Kraken you could also use CHF. The volume is smaller, but you can use the CHF bank account you likely already have.
But if you find a solution to free USD banking for non-residents, please share.
Believe us, moving around USD is lots of hassle. You can convert to eur or chf and withdraw, will be much easier.
Could Yuh be considered in this case? I’m not sure if it would work, but Yuh suggests holding USD directly. Perhaps an option to consider ?
As someone else has mentioned, Yuh provides a solution. That said, moving USD from IBKR > Yuh > Kraken all involve fees at different points so converting to EUR may be easier - and quicker. Even if you move the USD to Yuh and then out to Kraken, you still interface with IBAN - Kraken receive USD deposits via their IBAN in Lichtenstein.
Final point of note - make sure you have all transactions neatly documented. Several years ago I transferred a 7-figure sum to UBS from Kraken. A year after the transaction, UBS contacted me asking me to provide information on source of funds. Despite countless emails, phone calls and even a sit down meeting their risk department one day decided enough was enough and they closed my account.
Yuh has the backing of Swissquote who one could consider as being more “crypto friendly” but ultimately compliance/risk will decide whether they want you as a client so make sure you have everything ready for the inevitable call/email, especially if you are regularly routing money between IBKR - bank - Kraken.
Ultimately, I went the easy way and did IBKR > Neon > Kraken in CHF. All went smoothly and quickly within a day. A few days later, I did get a call (which I was expecting) from the bank behind Neon to ask me a few questions about the transactions as they were large and unusual. It’s somewhat reassuring.
But I would have loved to benefit from the low fees and best FX rates of IBKR, and using CHF to buy crypto can be pretty restrictive too (no futures, no leverage, low volumes, etc.). Also, Neon limits outgoing transfers to CHF 50K per day.