The AutoFX functionality is the process of IBKR automatically engaging in “spot” currency transactions on the customer’s behalf in order to flatten negative cash balances. This functionality will only occur for cash accounts and only for buy orders.
For example, if you wish to purchase a US stock and you only hold a GBP cash balance, IBKR will execute the stock trade against your GBP balance. After you place your US stock trade order, IBKR will execute a GBP/USD Forex trade to convert the necessary amount of your GBP balance to USD to settle the USD denominated stock trade.
Please Note
- AutoFX prioritizes to convert the user's Base currency in case any currency conversion is needed.
- If the base currency is not sufficient for the transaction to execute, the system checks user's other currency holdings and converts the currency that is available in sufficient amounts.
- For currency trades executed under the AutoFX functionality, IBKR will typically add or subtract (at its discretion) 0.03% to the exchange rate that would otherwise not apply.
- AutoFX trades will only occur on the equity segment of an account.
- AutoFX trades are not supported for FIX clients.
Additional Information