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.
⚠️ IBKR is not happy when you only use their services to convert the currencies without further investing on their platform – they’ll be sending you a warning if you do so. If you’re not planning to use IBKR for investing, you should not use them for currency conversion either.
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, based on $10k conversion:
Google rate: GBP 1 = USD 1.23489, fee: N/A
IBKR rate: GBP 1 = USD 1.23504, fee: $2 (fixed)
Revolut rate: GBP 1 = 1.2357 USD, fee: £84 / year (fixed)
Wise rate: GBP 1 = USD 1.23500, fee: $32.89 (variable)
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).