Author Topic: IBKR - Interactive Brokers  (Read 164288 times)

muscleman

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Re: IBKR - Interactive Brokers
« Reply #470 on: November 05, 2018, 08:46:17 AM »
I can convert the pesos back to CAD, that's no problem. What I really want is access to spendable money at interbank rates.

Resorts in Mexico don't take CAD at the pool bar (and USD at a terrible rate) so it makes sense to take MXN. I can get MXN via IB at interbank rates, but I can't get it out and spend it, as far as I know.

Do they not accept credit card? There are a number of good credit cards like the Chase Sapphire preferred/reserve that charges no foreign transaction fee. If you are in Canada, I am sure there will be something similar.
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bizaro86

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Re: IBKR - Interactive Brokers
« Reply #471 on: November 05, 2018, 09:32:00 AM »
I can convert the pesos back to CAD, that's no problem. What I really want is access to spendable money at interbank rates.

Resorts in Mexico don't take CAD at the pool bar (and USD at a terrible rate) so it makes sense to take MXN. I can get MXN via IB at interbank rates, but I can't get it out and spend it, as far as I know.

Do they not accept credit card? There are a number of good credit cards like the Chase Sapphire preferred/reserve that charges no foreign transaction fee. If you are in Canada, I am sure there will be something similar.

Canada has a very limited supply of cards with no foreign transaction fee, and nothing at all like Chase Sapphire. Oligopoly banks for the win!

However, I've observed that even with no fee that rate I get on foreign currency purchases from Visa/Mastercard is not nearly as good as the rate I can obtain by exchanging currency via IB.

rb

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Re: IBKR - Interactive Brokers
« Reply #472 on: November 05, 2018, 09:43:26 AM »
Chase Saphire is a Visa Infinite card. From what I remember when I looked at cards a few months back, the Visa Infinite cards from Scotia and TD were very similar to Chase Saphire.

bizaro86

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Re: IBKR - Interactive Brokers
« Reply #473 on: November 05, 2018, 12:08:34 PM »
Scotia passport visa infinite is probably the closest to the Sapphire Reserve card in Canada. It doesn't have some of the bigger perks ($300 in hotel credit, lounge passes are limited, etc) but it's a good card. Reward not as good as chase either, I don't think.

It is also one of the very few in Canada with no foreign fees, as per this comparison.
http://www.rewardscanada.ca/cccompare-all.html

I do think if IBKR can make its account a one stop shop for people that will increase their customer stickiness.

KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #474 on: November 05, 2018, 12:13:09 PM »
Chase Saphire is a Visa Infinite card. From what I remember when I looked at cards a few months back, the Visa Infinite cards from Scotia and TD were very similar to Chase Saphire.

The advantage of IBKR over a credit card is:
- You pay margin interest rates (<3%) instead of credit card rates (~20%)
- You earn fairly high interest on cash balances over $10,000 (peso rate is 3.7%)

scorpioncapital

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Re: IBKR - Interactive Brokers
« Reply #475 on: November 05, 2018, 12:32:06 PM »
TD bank in usa opens easily accounts for Canadians with cad address and it has no forex fee in USD...

IB card will probably be in base currency and then you can either hold the other currencies long before or convert without fee when paying your bill. Not ideal but better. Also I imagine there would be no foreign bank reporting requirements since it would be a domestic card.

Agree that EU is miles ahead in banking technology, apps, cheap wires, etc..They even have multi-currency Visa/MCs where the funds just come out of the relevant currency account linked to it and then cascade to the base currency if you run out of funds. Smart.

bizaro86

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Re: IBKR - Interactive Brokers
« Reply #476 on: November 05, 2018, 01:31:48 PM »
I have a US domiciled cc already (from RBC, but it's basically the same product). So I'm covered in the US as I can spend in USD on my cc. Then I withdraw USD from IBKR to my USD denominated account (in Canada) and pay my US credit card with that. 

I'd love a similar setup for GBP, EUR and MXN. I think it's more likely that IB will offer me a product like that than a Canadian bank will...

scorpioncapital

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Re: IBKR - Interactive Brokers
« Reply #477 on: November 05, 2018, 01:38:37 PM »
IB seems to have taken the little footnote about opening MC debit cards for CAD & EU accounts by 2018. Either it's imminent or there may be a regulatory hurdle (perhaps something to do with margin access)


muscleman

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Re: IBKR - Interactive Brokers
« Reply #478 on: November 05, 2018, 03:04:24 PM »
Scotia passport visa infinite is probably the closest to the Sapphire Reserve card in Canada. It doesn't have some of the bigger perks ($300 in hotel credit, lounge passes are limited, etc) but it's a good card. Reward not as good as chase either, I don't think.

It is also one of the very few in Canada with no foreign fees, as per this comparison.
http://www.rewardscanada.ca/cccompare-all.html

I do think if IBKR can make its account a one stop shop for people that will increase their customer stickiness.

I would NEVER ever open a debit card that directly links to my stock account for security reasons. This account has the most of my net worth. If the debit card is stolen or hacked, I would be really worried. I would rather pay a tiny bit more in the foreign ex rate for no foreign fee credit cards.
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writser

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Re: IBKR - Interactive Brokers
« Reply #479 on: November 06, 2018, 04:43:49 AM »
I would NEVER ever open a debit card that directly links to my stock account for security reasons. This account has the most of my net worth. If the debit card is stolen or hacked, I would be really worried. I would rather pay a tiny bit more in the foreign ex rate for no foreign fee credit cards.

Agreed. Apart from safety reasons I think it's also a horrible proposition from a behavioral perspective to have a credit / debit card linked to your retirement account. Recipe for disaster. Still, I like the idea as it would be basically be the only way for individuals not to get stiffed on exchange rates. I'd probably open another IB account for that (if that would make sense taking into account other IB costs).
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