Looking to Move from SelfWealth to Interactive Brokers to US Trading - Advice?

Hello community,

I'm hoping to get some commentary and advice on the Interactive Brokers fee structure and overall experience using that broker.
I currently utilise Self Wealth and have about 30% of my portfolio in ASX stock (mostly ETFs) and 70% in my NASDAQ portfolio in stocks at ETFs.
I presently want to take advantage of the low AUD by selling all my US positions and transferring USD over to AUD to buy up some equivalent ETFs of US stock.
My Self wealth account isnt small, and they currently charge 60 bps in fees for currency transfer (but when you look at their actual rate its more like 200bps! - quering this with them now).

From what i read Interactive Brokers are very cheap for such moves as they charge a very low (2bps??) transfer spread. This would be very handy going forward as i'd probably move between AUD and USD often.

I tend to make a small amount of large trades instead of making lots of small trades mostly in stocks and ETFs. I dont tend to use options and dont do cure Forex trading or crypto. I'd describe myself as a hobby trader (not a newbie but also not an expert and its not how i make my living)

My ask is this: Given that this is predominantly a US-based platform but is available in AU, could someone explain to me:

  • Is funding the account (deposits and withdrawls) pretty easy and cost effective? Looks like they partner with TransferWise and so one gets charged the usual spread TransferWise charge (which is quite good)
  • Are there any particular gotchas? From what i read they hold your non-AU domiciled ETFs in a trust or somesuch which complicates taxation?
  • Any catches with fees? As mentioned, im more concerned by % fees rather than once-offs as i make big trades rather than lots of little ones.
  • Is there integration with Sharesight good? id like to start using this for my eofy tax reporting as this is starting to get very onerous.
  • Any other thoughts or experience in using IBKR as an Aussie?
    thanks so much!!

Comments

  • I have been using IBKR for about 5 years now. I barely used SelfWealth though I did have an account with them too.
    —I have my IBKR linked with Australian and US bank accounts. Its a bank to bank transfer between the accounts so no fee etc. U can ofcource wire in as well which would be charged by the initiator.
    —I have ETFs and Shared and lot of options I am not aware of any gotchas that you mentioned
    — no fee catched. They charge for data subscription which they offset from brokerage. e.g. $5 for monthly US data but offset by brokerage
    — I dont use Sharesight so cant answer this one
    — This is the best platform giving exposure to worldwide exchanges and ability to convery currencies easily too.

    If you dont already have referral code, please DM me I will be happy to share mine, we both can get something out of that.

    • thanks for your reply mate.
      Tried to DM you but your DMs are switched off atm.

  • Made a similar move a few years ago because Selfweath order options are really limited. Never looked back.

    Funding is easy, quick and free with bank transfer. No gotcha fees that I've come across.

    Order options are SO much more flexible than Selfwealth.

    Site's a mess and the app is not user friendly, but I make all orders through TradingView and it works great.

    • Hmm, i'd never considered placing orders via TradingView - i also use that tool and even subscribe to it (although the only feature i need that's paid is watch lists larger than 30(?) stocks, the rest of the fancy stuff im not even using.
      Whats the benefit of doing it through TradingView? Can trading view see your cash balance, or its simply a way to place an order into a broker via an API call?

      • Mostly just a way to place orders via API, but IBKR's interface sucks so it's appreciated. You can also see all your current holdings and place orders directly on the chart.

  • I find the IBKR website unusably horrific, but the deposit options are nice (bpay etc) and the currency conversion is good value and instant. If you don't need options or margin access (both almost impossible to get approved) and you can survive the website, it's fine for your needs.

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