Does anyone here trade with Interactive Brokers?
- Thread starter Gino360
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Trembling Hand
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No Ordinary Duck
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Do you trade US stocks..?
Finding it very expensive with Fx.
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What do you mean by fx costs ?
Currency risk or the cost converting Aussie to USD and back again ?
Currency risk or the cost converting Aussie to USD and back again ?
Yes converting AUD-USD USD-AUD.
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I'm no expert in currency exchange matters but one solution could be to borrow US dollars to buy US stocks.
Anyone agree / disagree ?
I am not yet trading US stocks on IB, only ASX. However if I were to do so, I would either exchange all my AUD capital for USD and trade solely on US stocks, or only exchange a portion and have separate available capital for each. It's easy to take the exchange rate hit if you are not bouncing back between the two currencies all the time so it would have to be a longer term decision to trade US stocks in my opinion.
This is what I do when buying US stocks:
Keep base currency in AUD
Buy US shares from IB (which then buy you USD at the same time)
If you wish to hedge currency risk: buy same dollar value with mini futures M6E
Simple solution but a bit of investigating to implement in IB
Keep base currency in AUD
Buy US shares from IB (which then buy you USD at the same time)
If you wish to hedge currency risk: buy same dollar value with mini futures M6E
Simple solution but a bit of investigating to implement in IB
lmz, what type of account do you have? Individual, cash, margin?
When I used IB, and bought US stocks with 0 USD cash balance, they just loaned me the USDs needed for the purchase. No currency conversion took place. Does that work differently in your account?
