Interactive Brokers - SGD now available for funding - Part 2

[crystalnox]

thanks saw it.

another question - when i try to buy anything and click preview, why is my commission est showing NA?

also, if i want to trade usd do i - transfer sgd to ibsg then buy the stock then it will auto convert during the buy process?

You have to buy USD.SGD first like a stock, then use your USD balance to buy what you want. No auto conversions here.

 

[1a2a3a]

i want to buy isac

quantity 100 shares

order type limit and limit price 70.45

time in force = day.

press preview

Amount	7,045 USD (100 SHARES)
Order Type	Limit
Limit Price	70.45
Time-In-Force	Day
Commission (est.)	NA
TOTAL	NA

 

[wutawa]

thanks saw it.

another question - when i try to buy anything and click preview, why is my commission est showing NA?

also, if i want to trade usd do i - transfer sgd to ibsg then buy the stock then it will auto convert during the buy process?

No idea abt the est comms.
There wont be any auto covert when u trade. U have to convert 1st before u can buy when using cash acct.

 

[crystalnox]

I kinda get it I guess? Haha. Perhaps I will try another day.

If you converted your USD on Monday and Tuesday is a Public Holiday in either SG or US, T+2 would mean your cash only settles on Thursday. So if you tried to buy a stock today, T+2 would mean your money needs to be settled by Wednesday, which it hasn't so IB will tell you that you don't have enough cash. You have to think of FX conversions as stock purchases and not just simple conversions in IB.

 

[1a2a3a]

You have to buy USD.SGD first like a stock, then use your USD balance to buy what you want. No auto conversions here.

do i use convert currency?

then convert sgd to usd? i recall there is like minimum conversion fee of usd 2?

but when i click preview for the sgd to usd conversion it shows my comms = NA again.

 

[crystalnox]

do i use convert currency?

then convert sgd to usd? i recall there is like minimum conversion fee of usd 2?

but when i click preview for the sgd to usd conversion it shows my comms = NA again.

Yes you can either use convert currency or buy USD.SGD, same outcome. Take note you cannot convert until you have $0 SGD left, the system won't allow that. Just leave a few dollars left behind, it will automatically be swept into your base currency after a few days if it's <US$5.

Not sure why you can't see est. comms cause I currently see it for ISAC, could be your account is still new. Is your account base currency in USD or SGD?

 

[1a2a3a]

my base currency is in sgd. should i change it to usd? any difference?

 

[crystalnox]

my base currency is in sgd. should i change it to usd? any difference?

Not much, except for that free sweeping feature for leftover SGD into your base, and so that your total portfolio value doesn't fluctuate greatly with USD.SGD rates and only reflect real price movements of your ISAC in USD.

 

[hwckhs]

I kinda get it I guess? Haha. Perhaps I will try another day.

Just to expand on what @crystalnox said above, you can buy your VWRA from tomorrow onwards.

For example, if you buy tomorrow, T+2 = Thursday, which is the same day your USD settles, so IBKR will allow the order to be placed.

 

[1a2a3a]

could it be because you need to have enough funds in your account in order for the commission not to show NA?

 

[Initiatives]

If you converted your USD on Monday and Tuesday is a Public Holiday in either SG or US, T+2 would mean your cash only settles on Thursday. So if you tried to buy a stock today, T+2 would mean your money needs to be settled by Wednesday, which it hasn't so IB will tell you that you don't have enough cash. You have to think of FX conversions as stock purchases and not just simple conversions in IB.

Got it! This is very helpful! Thanks!

 

[Initiatives]

Just to expand on what @crystalnox said above, you can buy your VWRA from tomorrow onwards.

For example, if you buy tomorrow, T+2 = Thursday, which is the same day your USD settles, so IBKR will allow the order to be placed.

Appreciate it! Thanks for the insights!

 

[hwckhs]

I wonder if IBKR's way of allowing an order based on the USD settlement date is common among local/foreign brokers?

Does local brokers like SCB, allow you to convert SGD to USD and buy an ETF on LSE today?

 

[reddevil0728]

my base currency is in sgd. should i change it to usd? any difference?

will suggest maintaining base currency in the currency u most frequently use to trade in.

 

[1a2a3a]

i still dont understand why all my commission is showing NA still?

even when i try to convert SGD to USD, comms is showing NA also

 

[reddevil0728]

i still dont understand why all my commission is showing NA still?

even when i try to convert SGD to USD, comms is showing NA also

Their commission estimator not exactly the best

 

[revhappy]

I wonder if IBKR's way of allowing an order based on the USD settlement date is common among local/foreign brokers?

Does local brokers like SCB, allow you to convert SGD to USD and buy an ETF on LSE today?

SCB's FX conversion happens outside the brokerage account. It is immediate settlement within your savings accounts and then you transfer the converted FX to the FX settlement account and trade. So it is immediate. The downside is the wider spreads.

Saxo conversion is also immediate, but the exchange rate is even worse. I dont have much experience with any other brokers. Saxo has this concept of subaccounts for different currencies. If you have only SGD main account then the currency conversion happens automatically while buying the foreign currency stocks, but you get horrible exchange rates. You can open USD, GBP, EUR etc subaccounts and then do the currency conversion, you get slightly better rates but still worse than SCB or you have the option of directly wire transfering the FX to the subaccount.

TDA, doesnt understand any currency other than USD, the conversion happens outside the brokerage account.

IBKR, I find converting to a margin account solves all these issues.

 

[hwckhs]

SCB's FX conversion happens outside the brokerage account. It is immediate settlement within your savings accounts and then you transfer the converted FX to the FX settlement account and trade. So it is immediate. The downside is the wider spreads.

Saxo conversion is also immediate, but the exchange rate is even worse. I dont have much experience with any other brokers. Saxo has this concept of subaccounts for different currencies. If you have only SGD main account then the currency conversion happens automatically while buying the foreign currency stocks, but you get horrible exchange rates. You can open USD, GBP, EUR etc subaccounts and then do the currency conversion, you get slightly better rates but still worse than SCB or you have the option of directly wire transfering the FX to the subaccount.

TDA, doesnt understand any currency other than USD, the conversion happens outside the brokerage account.

IBKR, I find converting to a margin account solves all these issues.

I think brokers that provide immediate cash settlement are taking some additional risks (not sure what's the proper technical term for this). It's the same for money changers on the street. The additional risks would have been priced into the spread, like you said.

Looks like IBKR is the outlier among its peers. It's a small inconvenience to accept for the exceptionally good FX rate.

Yes, converting to margin account will fix it. However, to many DCA investors (myself included), "margin" sounds like a scary word and to be avoided as much as possible.
I just workaround the issue by planning ahead and if necessary, converting to USD a day earlier.

 

[jtec14]

i still dont understand why all my commission is showing NA still?

even when i try to convert SGD to USD, comms is showing NA also

I saw that also when my base currency is SGD and tried to convert the full SGD amount I had in cash account.

You should see some value in est comm when you convert a bit lesser than what you have. E.g 1995 when u have 2k.

 

[1a2a3a]

I saw that also when my base currency is SGD and tried to convert the full SGD amount I had in cash account.

You should see some value in est comm when you convert a bit lesser than what you have. E.g 1995 when u have 2k.

i did that and est comm is still showing NA.