How much is the cost fees to buy IWDA on ibkr? - Seedly
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Anonymous

Asked on 05 Aug 2020

How much is the cost fees to buy IWDA on ibkr?

New to ib and didn't realise that the default was set to fixed until I bought IWDA and realised I was charged USD5 in comms. Changed to tiered afterwards. But I realised on its pricing website, it does not show comms fee for LSE-etfs denominated in USD under tiered. Anyone can enlighten how much comms will be if I invest S$1000 into IWDA monthly under tiered? Or is it cheaper to just go with fixed since I'm also investing in us etfs and stocks? (Read somewhere that tiered will always be cheaper)

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Nicholas B
Nicholas B
Level 6. Master
Updated on 05 Aug 2020

IBKR does publish the commission rates on their website - it is under USD-denominated products in the Europe section. Tiered is better for most people. You will incur the following fees:

  • Currency conversion: 0.002%, min 2 USD

  • Commission: 0.05%, min 1.70 USD, max 39.00 USD

  • Exchange fee: 0.0045%, min 0.10 GBP

  • Clearing fee: 0.06 GBP

For your case, you will incur 3.70 USD + 0.16 GBP in fees, which certainly is cheaper than the 5 USD fixed commission.​​​

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Question Poster

05 Aug 2020

Thanks! That is helpful. May i know what happens if my account only has SGD and USD cash balances, how will it deduct the GBP for clearing fee and exchange fee?
Nicholas B
Nicholas B

05 Aug 2020

I believe that depends on your base currency. They will do an immediate conversion based on the exchange rate at the time.
Thank You!
Can you clarify
I wonder if
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