Multi-currency account
ProRealTime Trading accounts with Interactive Brokers are multi-currency accounts.
What is a multi-currency account
In addition to the base currency that you choose for your account, your portfolio can also hold other currencies.
This lets you trade on the markets of your choice with the possibility to limit fees related to interest and currency conversions. You can also deposit and withdraw funds from your account in the currency of your choice.
A multi-currency account has:
- a balance in the account's base currency
- a balance in each currency you trade with
The balance of each currency may be positive or negative - Here is an example.
- The base currency of your account is EUR and you have 12 300 EUR.
- You bought and sold NASDAQ stocks, making a gain of 1 250 USD.
- You bought and sold LSE stocks in GBP making a loss of 700 GBP.
- You bought and sold the forex pair EUR/CAD making a gain of 80 CAD.
- The sold of your account in each currency would be :
- + 12 300 EUR
- + 1 250 USD
- - 700 GBP
- + 80 CAD
Check and convert secondary currency balances
To open the currency conversion window:
- Open the ProRealTime Trading platform.
- Choose "Trading" and "Portfolio" in the maintool bar to open the window "Portfolios".
- Click on the button next to "Cash to be converted" in the window "Portfolios".
This window will display:
- the base currency of your portfolio,
- the total value of your portfolio, converted into your base currency (at the current exchange rates),
- all your non-zero currency balances.
From this window you may convert any of your currency balance to your base currency or any other currency of your choice.
To convert a currency balance in base currency:
- In the "Operations" menu, select "Conversion in portfolio currency".
- Click on the conversion button next to the currency balance you wish to convert.
To make a conversion in another currency:
- In the "Operations" menu, select "Conversion" in another currency.
- Select the "Currency to convert" and the "Currency to obtain" in the drop-down menus.
- Enter the "Amount to convert" (or select "Convertible cash" to convert all the convertible cash available in the currency to convert).
- Click on "Convert".
- In the "Conversion in portfolio currency" view, you must have closed all your positions in a secondary currency before converting the corresponding balance to your base currency. You may however perform such a conversion without closing your positions in the "Conversion in another currency" view.
- The currency conversion is subject to the same pricing as the execution of a Forex order.
- A residual balance of 1 $ (or equivalent in another currency) may appear after conversion due to market differences when the conversion is made. You can ignore any residual balance less than 5 $ (or equivalent) which will be automatically converted without fees to your base currency whithin 24 to 48 hours.
Changing the base currency of your account
Even when your account is open you can change the base currency at any time.
- Log in to the account management interface using your second login and second password (and your double authentication system if applicable).
- Click on Account Settings at the bottom of the homepage (below Settings).
- In the Configuration section, click on the gear wheel to the right of Base Currency.
- Select the base currency for your ProRealTime Trading account in the drop-down menu.
- Click on Save.
- Follow the instructions on the screen.
The modification will be taken into account within 24-48 hours.
Note that changing your base currency will not automatically convert the different currencies you have in your portfolio. To do that, please follow the instructions in the paragraph above.
Warning related to US penny stocks trading
If you wish to trade on US penny stocks or US OTC stocks, please note that the SEC rule 405 applies on those instruments:
If you open a position size or reach a trading volume that is significant regarding the stock's total capitalization, Interactive Brokers may suspend your trading capability on this instrument pending a compliance review.
Note this may apply even if you have an open position on the instrument.
In such a case, you will need to reply to some questions regarding your possible affiliation to the company before Interactive Brokers' compliance team can restore your trading capability on the stock.
Furthermore, additional restrictions may apply on part of the stocks on the OTC market:
- You may need to request trading permissions for "Penny Stocks" on your account to be able to place orders on some of the stocks on this market (in addition to permissions for US stocks).
- In accordance with the Exchange Act Rule 15c2-11, securities of issuers that have not met public reporting requirements are not tradable electronically. As a consequence, trading on these securities is not available on ProRealTime Trading accounts.
