Hi guys I've been buying some US stocks lately. Noticed there is a $2USD FOREX fee for each buy (in addition to commissions).
I tried to convert AUD to USD in bulk to avoid this repeated cost. However when I try to buy the USD in the FOREX section it says Australian law no longer allows this???
Can someone let me know if this is the case? Or perhaps I haven't followed the right steps. This additional fee is really annoying for small ST trades.
Do you have a cash account or Reg-T? You can't convert funds like you said if you have a cash account. I believe if you buy US stock with AUD like you said you are they will do the FX conversion (the $2 fee) but when you sell the stock I think your funds will be in USD, you can then convert the USD > AUD via a FX transaction . The Comms would still be cheaper than in AUS probably, but it is a pain
Example:
Let's say I have a $100,000 account.
I am interested in buying XYZ. It closed at $10 today. I want to buy $10,000 of XYZ at limit $9.80 tomorrow.
I place a limit order to buy at $9.80 with the condition to trigger if the price falls to $9.90 first.
Will IB reserve the capital on this order type if it is not triggered? i.e. as soon as I place the order will my "available funds" be $90,000 or still $100,000?
Cheers
Thanks for the confirm. Guess I'll have to cop it then. Thought i could make small <1k trades because of the $1 commissions for US stocks but this makes it a lot more expensive.
What I did to get around this limitation is to buy say $10k of stock and wait for the margin call, which will then automatically convert your AUD to USD. Once that happens you can sell the stock and the money will returned to you as USD. I've done this twice, the 1st time it took 12 minutes for the margin call to happen, the 2nd time it only took a minute to happen. Note that you'll have to wait 3 days for the funds to clear before you can use the USD to buy US stocks.
Thanks for the confirm. Guess I'll have to cop it then. Thought i could make small <1k trades because of the $1 commissions for US stocks but this makes it a lot more expensive.
What I did to get around this limitation is to buy say $10k of stock and wait for the margin call, which will then automatically convert your AUD to USD. Once that happens you can sell the stock and the money will returned to you as USD. I've done this twice, the 1st time it took 12 minutes for the margin call to happen, the 2nd time it only took a minute to happen. Note that you'll have to wait 3 days for the funds to clear before you can use the USD to buy US stocks.
hey I've recently went to short a stock with IB on the US markets and been hit with message saying this account cannot hold a short position, looking at this https://www.interactivebrokers.com/en/index.php?f=am_stockshorting&p=overview2
does this mean aussies cant short stocks?
They blame ASIC which is stupid if other brokers from US can get their act together in Australia why IB can't do it is beyond any logic.
HAs anyone seen or know where I can generate a report of dividends that also shows franking credits?
I asked the friendly IB online chat - but they have no knowledge of what franking credits are. It would make it much easier for my accountant if I could give him a EOFY statement that also included the franking credits (if any) of dividends.
Re. Franking Credits - I still can't see info re. Franking Credits / Tax Withheld on an EOFY IB statement.
How can I find this information out without manually digging up the info?
There's a "Change In Dividend Accruals" table in the FY statement - it has columsn such as:
Date, Pay Date, Quantity, Tax, Fee, Gross Amt, Net Amt etc.
However....
Using WBC as an example, which is fully franked, there's no info in the report which indicates that there was already tax paid out of the dividend.
Surely this info must be in the report somewhere, but I'll be jiggered if I can find it.
Just wondering since IB practically gives zero interest on cash in account.
Is there any share, bond, or other product I can buy in IB which will give a relatively low risk regular yield/interest?
Does this make sense? Perhaps something like a low risk bond which has a steady capital appreciation as it moves towards maturity. Are there any options/recommendations, or just sit in cash.
How about the AAA etf?look at bank hybrids - good yield - I have NABHA, NABPB etc.
a new one on me- please explainHow about the AAA etf?
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