Currency exchange on IBKR

Broker FAQ 📈
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1

Hey,

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.
Thanks

2

Hey,

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 IBKR’s account (it’s JP Morgan bank in Germany, so it’s considered as an international transfer) would be really costly.
  • Please note that this is true only if you use the “Free” exchange allowance, which is ~HUF 350k at “Standard account”.

If you have to option to transfer to IBKR account without any fee, then I’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 it’s more than 2x cheaper than Revolut.

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

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