Study Notes:
The Interactive Brokers’ GlobalTrader app allows the investor to fund their account using one of more than 20 different currencies and convert to the currency needed for the market where they want to invest.
How to Convert Currency in GlobalTrader?
To convert currency using the GlobalTrader app, the investor can tap on the Convert icon on the Home screen. From there, a list of currencies available will populate the screen. The investor can scroll through the screen and tap on the currency they would like. For this example, while the account is funded using US Dollars (USD), the investor chooses the Swedish Krona or SEK.
Next, the investor is prompted to choose which currency to convert from. Notice in this example that the investor can choose to convert from United States Dollars to Swedish Krona.
Not all currency pairs are supported. For instance, the Canadian Dollars the investor owns could not be converted directly. Canadian Dollars would first need to be converted to US Dollars (USD) and subsequently converted to Swedish Krona.
A list of supported pairs can be found by tapping on the blue Show supported pairs line and then tapping on the blue “IDEAL PRO” wording.
In this scenario, the investor chooses to convert some of their United States Dollars to Swedish Krona by tapping on the USD icon. The investor now chooses the value in USD that they want to convert from or the value of SEK they want to convert to. After inputting the desired value, they tap on the Preview button at the bottom of the screen and after reviewing the information tap on Convert. The investor is notified that the conversion is initiated and can choose to convert more or tap on Done.
The currency position will now be shown in the Portfolio page and can be used to purchase supported instruments in that region.
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Disclosure: Interactive Brokers
The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers LLC, its affiliates, or its employees.
Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.
In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.
Disclosure: Forex
There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.
