Currency exchange on IBKR


I have savings in HUF. I would like to invest in USD and EUR on IBKR. Where would you recommend to exchange HUF to EUR and USD. Should I transfer HUF to my IBKR account, and exchange there, or should I do the exchange eg in Revolut, and transfer EUR and USD inot IBKR.


I also live in Hungary and this is what I do:

  • From my bank I transfer HUF to Revolut, convert it to EUR or USD and send it to IBKR.
    The reason behind this is that transfer cost from Hungarian bank to IBKRโ€™s account (itโ€™s JP Morgan bank in Germany, so itโ€™s considered as an international transfer) would be really costly.
  • Please note that this is true only if you use the โ€œFreeโ€ exchange allowance, which is ~HUF 350k at โ€œStandard accountโ€.

If you have to option to transfer to IBKR account without any fee, then Iโ€™d recommend converting at IBKR because the FX conversion is usually better at IBKR vs Revolut (it depends on the converted amount) as below:

  • Revolut costs roughly 0.7% if you are within the free allowance (additional 1% mark-up if you exceed the limit).
  • IBKR charges 0.2% with small spreads and a $2 minimum. If you convert a bit higher balance (~HUF 350-400k), then it would cost somewhere 0.2-0.3% at IBKR, so itโ€™s more than 2x cheaper than Revolut.

I hope this message is clear. Let me know if you have question.

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