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It is useful especially for foreigners that need to pay bills in different currencies as well without the hassle of international transfers (and additional cost) . In Us people have way better options to spend their money rather than a debit card. Chase or CapitalOne c.c. to mention few. That is why I am thinking that the IB move to offer the debit card only to US citizens is not wise at all.
I assume this works with the actual given currency pair (IB) at the moment you make a transfer.
Same as withdrawing. It is from your IB account - currency is automatic fixed at a transaction moment.
Extra charges should not being applied as it is money from YOUR account - and no CREDIT card nor
credit card company involved.
1) the card has a base currency denominated (likely here in this case US$
2) if you pay (withdraw or POS payment) in another currency, the mastercard network
will automatically apply currency conversion (rough at the moment of the transaction
autothorization), exactly at the moment of settlement
3) in rare occasions it can be dynamic currency conversion, (which is a legal rip-off)
and the transaction is denominated for example in EU at the point of sale of ATM and
then again converted to US$.
So what is not possible : you have a debit card, when you pay in US$ it goes from you
US$ in IB, when you pay in EU, it goes off your EU account in IB, that is not possible.
Hi rleplae
I think this is a very interesting possibility and a benefit for IB:
exactly that: no card company does it today - for that you need several cards in different currency.
But @ IB trades can be done in every pair of importance - hence one account:
One margin, one real time cash calculation etc.
So I will ask by mail this time at IB HG of Europe - hopefully getting a good answer
which I will post here.
If you have a IB account you can at the same time
• BUY a Future at Eurex
and
• SELL a stock at NYSE
The first is done in €, the other in $ ON the SAME account
means transferred at time of trade with the thin spreads you get
when you trade currency pairs.
Thus if you debit your card you get the pair needed to the pair to the socond
instead of a day currency pair offered from your BANK with wide spreads PLUS fees
As I interpret the IB intent - they want to have more liquid currency trades - not interested in complicated
calculations with in house spreads and in house fees.
So they let you profit from that direct transactions (Eurex included) on your positive account by using
their debit card to make transactions anytime without big fees and best overview on your IB account.
Only volume counts