Interactive Brokers (IB) Stock Account

[shortbleu 10]

Hi,

 

1) As a UK resident can I open a stock account in GBP and the deposit will remain in GBP even if I trade in foreign currencies stock? i.e, there is no currency risk on the deposit, there is currency risk on the P&L denominated in foreign currency?

2) I need GBP 6,250 minimum (equivalent of USD 10,000) to open the account?

3) What happen if the account falls below GBP 6,250 due to a loss or withdrawal?

4) The only cost to run the account will be commission to open/close positions and monthly fee of USD 10 or are there any other costs? (NB: I only need to see a live price on the ask price and the bid price and their related volumes to trade. I don’t need any depth level 2 or graphs, so costs should be kept to a minimum).

5) Example: The account is opened with GBP 6,250, the yearly cost to buy 1100 european stocks(from Belgium, france or Italy) on 1 April 2010 at EUR 5 each and selling them back at the same price of EUR 5 on 31 March 2011 would be as follow: 1100*eur 5 *0.1% to buy the stocks + 1100*eur 5 *0.1% to sell the stocks + 12* USD 10? Are there any other costs?

 

Will the account show the following:

Deposit balance GBP +6,250

Commission : EUR -11 (1100*eur 5 *0.1%+1100*eur 5 *0.1%)

Monthly fees: USD -120

Profit/loss = EUR zero

Or do they convert the commission and monthly fees in GBP, or just the EUR commission in USD and the monthly fees stay in USD?

 

Many thanks

[DugDug 10]

1) As a UK resident can I open a stock account in GBP and the deposit will remain in GBP even if I trade in foreign currencies stock? i.e, there is no currency risk on the deposit, there is currency risk on the P&L denominated in foreign currency? YES

2) I need GBP 6,250 minimum (equivalent of USD 10,000) to open the account? ASK IB

3) What happen if the account falls below GBP 6,250 due to a loss or withdrawal? ASK IB

4) The only cost to run the account will be commission to open/close positions and monthly fee of USD 10 or are there any other costs? (NB: I only need to see a live price on the ask price and the bid price and their related volumes to trade. I don’t need any depth level 2 or graphs, so costs should be kept to a minimum). IF YOU WANT LIVE PRICES YOU WILL GENERALLY NEED TO PAY FOR LIVE PRICES. FREE PRICES ARE GENERALLY DELAYED BY 20MINS - SEE OTHER THREADS FOR MORE INFO

5) Example: The account is opened with GBP 6,250, the yearly cost to buy 1100 european stocks(from Belgium, france or Italy) on 1 April 2010 at EUR 5 each and selling them back at the same price of EUR 5 on 31 March 2011 would be as follow: 1100*eur 5 *0.1% to buy the stocks + 1100*eur 5 *0.1% to sell the stocks + 12* USD 10? Are there any other costs?

SO YOU ARE BUYING 5 INSTRUMENTS AT A COST OR 1100 EURO EACH?????

OR ARE YOU BUYING 1100 INSTRUMENTS AT 5 EUR EACH????

 

Will the account show the following:

Deposit balance GBP +6,250

Commission : EUR -11 (1100*eur 5 *0.1%+1100*eur 5 *0.1%)

Monthly fees: USD -120

Profit/loss = EUR zero

Or do they convert the commission and monthly fees in GBP, or just the EUR commission in USD and the monthly fees stay in USD?

 

SORRY - BUT YOU ARE JUMPING ALL OVER HE PLACE - WHERE DID USD COME FROM??

FEES FOR EURO TRADED STOCKS SHOULD BE IN EURO.

[Tams 20]

This is how IB account works:

 

you will designate a base currency for your account.

it can be any currency... and it does not have to be your home currency.

you can change your base currency any time you want.

 

when you make a trade in a currency other than your base currency,

IB will automatically make a "loan" for you in that "foreign" currency.

 

things you can do:

 

1. close out the "loan" with a currency cross

 

2. leave the "loan" in your account,

you will continue to earn interest in your base currency (if you meet the min),

and pay interest in your "loan".

 

for daytrades, you close your position at the end of the day,

so the loan does not hit you at all.

 

for short term trades, you can leave the "loan" open,

and close it when you close the position.

it will be cheaper than paying 2 foreign currency buy/sells.

[sevensa 10]

Why wouldn't you ask questions like this to IB? I don't understand why you would rather believe the answers from anonymous posters on the internet instead of getting the official answer from the source?