Referral program
Please ping me if you’re interested in IBKR after reading this note, and I’ll share a referral link.
Main use case
- Deposit USD from the US;
- Convert USD to GBP;
- Buy UCITS ETFs using GBP, potentially (but not necessarily) within an ISA;
- Eventually sell the ETFs and withdraw GBP.
Commissions and fees
Main source page: ibkr.co.uk/commissions
- Depositing USD (via linked US account): free
- Converting USD to GBP: 0.002% (min $2)
- Trading ETFs in GBP (source):
- Tiered: 0.05% (min £1) + exchange (0.0045%) + clearing fees (£0.06 flat)
- Fixed - SmartRouting: 0.05% (min £3), no fees ← which is why I’m currently on Fixed
- Fixed - Direct routing: 0.10% (min £4), no fees
- Withdrawing GBP: 1 free per month, then £1 per withdrawal
- Account maintenance fees:
- General Investment Account fee: none
- ISA fee (source): minimum monthly activity fee of £3
USD-GBP conversion example
On March 30, 2023, at 10:51 AM:
- Google rate: GBP 1 = USD 1.23489, fee: N/A
- IBKR rate: GBP 1 = USD 1.23504, fee: $2
- Revolut rate: GBP 1 = 1.2357 USD, fee: £84 / year
- Wise rate: GBP 1 = USD 1.23500, fee: $76.03
Time frames
- Depositing USD (via linked US account): 1 business day
- Converting USD to GBP: instant
- Trading ETFs in GBP: instant
- Withdrawing GBP: 3 business days
Pros and cons
- ✅ Low fees.
- ✅ Very detailed reports in the Performance & Reports tab.
- 🚫 You can’t use IBKR to transfer-convert-withdraw GBP immediately.
- IBKR is not just a bank, it’s primarily an investment platform, so if you don’t invest GBP and instead just withdraw it immediately – you’ll get a warning from IBKR, and eventually will have your account restricted.
- 👎 Crappy UI:
- Slow to load, sometimes just loads forever after navigating to a page;
- Not noob-friendly;
- The “Transfer & Pay” tab just doesn’t load half of the times.
- Does crazy rounding on mobile app
The best way to see the activity and the snapshot of the account is to generate an activity statement: Performance & Reports → Statements → Activity → Year to Date.
FAQ
- What does PRO mean in IBKR PRO?
- In the US, there is an IBKR Lite version. But it’s not available for UK-domiciled customers.
- What is SmartRouting?
- SmartRouting is an automated system that searches multiple market centers and exchanges to identify the best available bid and ask prices for a given security.
- SmartRouting was applied to my purchase of VUSA ETF on the Fixed tier.
- What is the interest rate on the cash credit?
- For GBP, it’s 3.275% for credit above £8,000 (source).
- What are Live and Paper options?
- Live is your real account. Paper is a simulator where you start with 1M GBP.
- Do I need to file a W8-BEN form?
- Upon creating an account, a Combined CRS/IRS Tax Form is created that is a substitute for W8-BEN. To view the form, go to Settings → click on your name above the ‘Account Holder’, check the ‘Tax Forms’ list item (last row of the list).