IB Ideal Forex Conversion

I am new to IB. I checked the foex IB Ideal for forex conversion, the spread is 10 pips. For example, the euro is 1.2750@1.2760, canadian is 0.8910@0.8920.

Is it really that cheap to convert my money into foreign currencies? or is this quote just for forex trading. Because as far as i the banks and brokerages i deal with, the spread is anywhere from 50 pips (brokers) to 300 pips(retail banks).

Could someone please comment on this? Thanks a lot

 

If it is on the screen, hit it! You have to check it is ideal and not ideal pro.

 

Yes, these are real. IDEALPRO is even better, commonly with spreads of only a couple pips or less. Do note that there are also commissions, minimums, etc., which you can find on the website.

 

I think he is talking about coverting from one currency to another

( IDEAL )

and not trading for pips

( IDEALPRO )

 

Just to make it clear, he can still use IDEALPRO for amounts over 25K.

 

I've used both. IDEALPRO is a cheaper bet, but base currency amount must be $25,000 or more.

One of my IB accounts is Universal, and conversions to other currencies are done automatically. I haven't checked the rate, but it's small enough it would not change the trade risk calculations.

One of my IRA accounts is IB, and I'm constantly hitting <T> and finding out that Cash accounts do not do automatic conversions. I then have to buy enough currency in the target market to do the trade. If over $25,000 USD I use IDEALPRO and, as you note, save a lot.

 

So, if i have say 25K euro, and i want to withdrawl it to my bank account in US, i can still use idealpro?

Also, if i want to buy japanese equities, i can use idealpro to buy japanese yen and use the yen i bought from idealpro to buy japanese stocks?

 

if you want to buy japanese equities, you don't need to do the conversion. just buy the equity and IB will provide a loan in yen. your profits or losses will be in yen and those can be converted back to USD via IDEAL or IDEALPRO.

 

Say i want to avoid the free falling dollar. So, i buy the japanese equities in yen. Can i exchange my USD in IDEALPRO and buy japanese stocks using the yen i bought from IDEALPRO?

 

Of course, you can buy JPY and use it for stocks.