Clients from most countries in the world benefit from a multi-currency account at IBKR. Such accounts can hold multiple cash balances at the same time.
To open a position in a security that is denominated or settled in a currency you do not hold:
Clients with a cash account
- will have the AutoFX functionality automatically engage 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, or
- will need to convert enough funds to the denominated/settled currency to cover the cost of the trade prior to placing the trade.
Clients with a margin account
- (a) convert enough cash to cover the cost of the position in the denominated/settled currency, or
- (b) open the position without converting currency and IBKR will extend a margin loan to cover the cost of the trade (please note that for option (b) when the position is closed the margin loan will close as well but the gain/loss on the position will remain in the denominated/settled currency).
Please Note
- You do not have to change the Base Currency of your account to trade products denominated in different currencies. The main purpose of the Base Currency is to translate statement balances into one single currency.
Additional Information