IB Account: Transfer Fee

For residents of the United Arab Emirates.
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Topic Author
darpan02
Posts: 5
Joined: Wed Jun 05, 2019 2:06 pm

IB Account: Transfer Fee

Post by darpan02 »

Hi guys,

I recently opened a new account with IB. Transferred USD 1000 from a Standard Chartered account but only received 970 in the IB account. I wanted to check if there is any way to reduce the transfer charges, as i intend to transfer around 1000 usd monthly to invest into ETFs.

Thanks in Advance
Darpan
one_moment
Posts: 3
Joined: Thu Jun 06, 2019 1:50 am

Re: IB Account: Transfer Fee

Post by one_moment »

1) you can reduce the fees by transferring quarterly, which is what i do.
2) use exchange houses to transfer the money, for example UAEexchange exclusive club allow you to send money with really the lowest fees in the uae , 140 dhs total for 5000+ dollars.
AlohaJoe
Posts: 6609
Joined: Mon Nov 26, 2007 1:00 pm
Location: Saigon, Vietnam

Re: IB Account: Transfer Fee

Post by AlohaJoe »

darpan02 wrote: Wed Jun 05, 2019 2:10 pm I recently opened a new account with IB. Transferred USD 1000 from a Standard Chartered account but only received 970 in the IB account. I wanted to check if there is any way to reduce the transfer charges, as i intend to transfer around 1000 usd monthly to invest into ETFs.
In general Interactive Brokers doesn't charge any incoming fees: https://www.interactivebrokers.com/en/index.php?f=14718

Most likely the fee came from Standard Chartered. So find a different bank or transfer money a different way, such as ACH or BPAY.
glorat
Posts: 1036
Joined: Thu Apr 18, 2019 2:17 am

Re: IB Account: Transfer Fee

Post by glorat »

I got stung on the same...

Citibank US (IB's US bank) charges $25 USD for any incoming international USD transfer. (My own bank also charged me an 8 USD fee for transferring out internationally).

Things that might help you are
  • It is a flat fee so transfer a lot and infrequently
  • No fee for local USA transfer - if you have a USA based bank account
  • Generally no fee for local ccy transfer in local country - then FX it across to USD once in IB. IB has wafer thing FX spreads and commissions and IB accepts may currencies. This may help depending on where you have bank accounts
Topic Author
darpan02
Posts: 5
Joined: Wed Jun 05, 2019 2:06 pm

Re: IB Account: Transfer Fee

Post by darpan02 »

Thanks everyone

The last point seems interesting p. Can we transfer to AED in IB ? As far as I read, we have to transfer to IBs Citibank’s account in a USD account.
Topic Author
darpan02
Posts: 5
Joined: Wed Jun 05, 2019 2:06 pm

Re: IB Account: Transfer Fee

Post by darpan02 »

glorat wrote: Thu Jun 06, 2019 2:33 am I got stung on the same...

Citibank US (IB's US bank) charges $25 USD for any incoming international USD transfer. (My own bank also charged me an 8 USD fee for transferring out internationally).

Things that might help you are
  • It is a flat fee so transfer a lot and infrequently
  • No fee for local USA transfer - if you have a USA based bank account
  • Generally no fee for local ccy transfer in local country - then FX it across to USD once in IB. IB has wafer thing FX spreads and commissions and IB accepts may currencies. This may help depending on where you have bank accounts

Thanks glorat

The last point seems interesting. Can we transfer to AED in IB ? As far as I read, we have to transfer to IBs Citibank’s account in a USD account.
Last edited by darpan02 on Thu Jun 06, 2019 1:27 pm, edited 1 time in total.
Topic Author
darpan02
Posts: 5
Joined: Wed Jun 05, 2019 2:06 pm

Re: IB Account: Transfer Fee

Post by darpan02 »

AlohaJoe wrote: Thu Jun 06, 2019 2:23 am
darpan02 wrote: Wed Jun 05, 2019 2:10 pm I recently opened a new account with IB. Transferred USD 1000 from a Standard Chartered account but only received 970 in the IB account. I wanted to check if there is any way to reduce the transfer charges, as i intend to transfer around 1000 usd monthly to invest into ETFs.
In general Interactive Brokers doesn't charge any incoming fees: https://www.interactivebrokers.com/en/index.php?f=14718

Most likely the fee came from Standard Chartered. So find a different bank or transfer money a different way, such as ACH or BPAY.

Thank you - will check both these options.
Topic Author
darpan02
Posts: 5
Joined: Wed Jun 05, 2019 2:06 pm

Re: IB Account: Transfer Fee

Post by darpan02 »

one_moment wrote: Thu Jun 06, 2019 1:54 am 1) you can reduce the fees by transferring quarterly, which is what i do.
2) use exchange houses to transfer the money, for example UAEexchange exclusive club allow you to send money with really the lowest fees in the uae , 140 dhs total for 5000+ dollars.
Thank you - I read in another post on Quora that IB discourages transfer through UAE exchange - have you faced any challenges.. Transferring quarterly seems a great idea.
glorat
Posts: 1036
Joined: Thu Apr 18, 2019 2:17 am

Re: IB Account: Transfer Fee

Post by glorat »

darpan02 wrote: Thu Jun 06, 2019 1:22 pm
glorat wrote: Thu Jun 06, 2019 2:33 am I got stung on the same...

Citibank US (IB's US bank) charges $25 USD for any incoming international USD transfer. (My own bank also charged me an 8 USD fee for transferring out internationally).

Things that might help you are
  • It is a flat fee so transfer a lot and infrequently
  • No fee for local USA transfer - if you have a USA based bank account
  • Generally no fee for local ccy transfer in local country - then FX it across to USD once in IB. IB has wafer thing FX spreads and commissions and IB accepts may currencies. This may help depending on where you have bank accounts

Thanks glorat

The last point seems interesting. Can we transfer to AED in IB ? As far as I read, we have to transfer to IBs Citibank’s account in a USD account.
Some 21 currencies are supported for deposit in my IB account but AED is not one of them.

The way I make use of the above feature is I have an HSBC Premier account which allows me to open bank accounts in any of their country and offer free international wire transfers. So, for example, I could shift my HKD to my remote HK HSBC account for free and then to IB for free. I could probably move USD to HSBC US then IB USD for free too.
one_moment
Posts: 3
Joined: Thu Jun 06, 2019 1:50 am

Re: IB Account: Transfer Fee

Post by one_moment »

darpan02 wrote: Thu Jun 06, 2019 1:26 pm
one_moment wrote: Thu Jun 06, 2019 1:54 am 1) you can reduce the fees by transferring quarterly, which is what i do.
2) use exchange houses to transfer the money, for example UAEexchange exclusive club allow you to send money with really the lowest fees in the uae , 140 dhs total for 5000+ dollars.
Thank you - I read in another post on Quora that IB discourages transfer through UAE exchange - have you faced any challenges.. Transferring quarterly seems a great idea.
UAE exchange exclusive club is a personal service and they are used to send the money with your name and account number attached to IB. i use it regularly without any problem. plus its free. as i said i transfer quarterly which reduces all the fees alot.

i send quarterly and i buy monthly in IB so the commissions wont be deducted for nothing.
shcnno
Posts: 81
Joined: Tue May 09, 2017 10:56 am

Re: IB Account: Transfer Fee

Post by shcnno »

glorat wrote: Thu Jun 06, 2019 2:33 am I got stung on the same...

Citibank US (IB's US bank) charges $25 USD for any incoming international USD transfer. (My own bank also charged me an 8 USD fee for transferring out internationally).

Things that might help you are
  • It is a flat fee so transfer a lot and infrequently
  • No fee for local USA transfer - if you have a USA based bank account
  • Generally no fee for local ccy transfer in local country - then FX it across to USD once in IB. IB has wafer thing FX spreads and commissions and IB accepts may currencies. This may help depending on where you have bank accounts
Citibank doesn't charge $25 for incoming wires to ib.
The fee you experienced is likely the sending bank's corresponding bank in the US that charged this fee.
Almost all non us bank will have a US corresponding bank that will send the usd to the receipient, and they typically charge around $25 for this.
You write your bank charges $8, this is just your local fee, and you should expect additional fees the be deducted on the way.
glorat
Posts: 1036
Joined: Thu Apr 18, 2019 2:17 am

Re: IB Account: Transfer Fee

Post by glorat »

shcnno wrote: Sun Jun 09, 2019 9:49 am
glorat wrote: Thu Jun 06, 2019 2:33 am I got stung on the same...

Citibank US (IB's US bank) charges $25 USD for any incoming international USD transfer. (My own bank also charged me an 8 USD fee for transferring out internationally).

Things that might help you are
  • It is a flat fee so transfer a lot and infrequently
  • No fee for local USA transfer - if you have a USA based bank account
  • Generally no fee for local ccy transfer in local country - then FX it across to USD once in IB. IB has wafer thing FX spreads and commissions and IB accepts may currencies. This may help depending on where you have bank accounts
Citibank doesn't charge $25 for incoming wires to ib.
The fee you experienced is likely the sending bank's corresponding bank in the US that charged this fee.
Almost all non us bank will have a US corresponding bank that will send the usd to the receipient, and they typically charge around $25 for this.
You write your bank charges $8, this is just your local fee, and you should expect additional fees the be deducted on the way.
Thanks for this information!
me81
Posts: 30
Joined: Fri Jan 04, 2019 12:37 pm

Re: IB Account: Transfer Fee

Post by me81 »

Hi all,

Following on the advice already given, I took the chance to create a new thread to advertise the request to add AED as an accepted currency from IB.. That would solve any and all issues...

Please find the link to the thread here: viewtopic.php?f=26&t=283089

The link to the poll on the IB website here: https://www.interactivebrokers.com/en/i ... &sid=13096

And the link with guidelines on how to cast your vote here: https://www.interactivebrokers.com/en/? ... res%20poll

Hope we will eventually get there...

Cheers
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