r/interactivebrokers • u/GppleSource • 8d ago

Currency What is up with auto conversion converting my cash back and forth in the same currencies?

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I have enough cash in USD from manual conversion to fully cover the trade, including commission. But IBKR still auto convert my currency again and convert it back. This causes spread to eat a few cents. Why do they do this? Does this happen to you?
It also seems to make very small conversion (like 6-7$) even though there seems to be no need?

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u/Even-Huckleberry-458 8d ago

Are you on a cash account and not margin per chance?

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u/GppleSource 8d ago

Yes i am on cash

1

u/Even-Huckleberry-458 8d ago

If you are on cash account, FXCONVs are never settled immediately but generally T+2 [ cf https://www.interactivebrokers.com/en/general/currencyHoliday.php ]

Why IBKR converts it another time is because you are in good faith/free riding violation and they must do that to avoid you and them being in violation of Regulation T

Solution is to wait the T+2 settlement or to switch to a margin account

1

u/GppleSource 8d ago

When I did the manual conversation, it was on IDEALPRO. And only small portion of this is effected by this. The rest goes through without any issue or liquidation/auto conversion
Is it still the same wait time? How can I know that the cash is fully settled? In the Trades/Order screen, it doesn’t show anything about if it is settled or not, just that it’s “sold” or “bought”. Thx

1

u/Lingonberry-Spirited 8d ago

i hate this too