Up until now buying Canadian and European stocks at IB required you to have sufficient funds available in the currency of the exchange the stock traded on before making the trade. Doing those fx conversions manually was a hassle and probably a reason some US users avoided trading in these other markets. IB now does automatic currency conversions so you just do the trade and they take care of the fx conversions. I posted their notification below. I don't have any information other than what is in the notification and I don't know if this is available for IB clients outside of the US. I can say that I have traded some Canadian stocks and the fx conversion was seamless.
Change to Trading Policy After US Market Close on May 24, 2024
Dear Client,
We are writing to inform you of an important change in our trading policies that will take effect after US market close on May 24, 2024. At IBKR, we strive to provide our clients with a seamless and efficient trading experience, and this update is designed to enhance your trading experience further.
Effective after US market close on May 24, 2024, IBKR will no longer require clients with cash accounts to have cash in the trading currency of the stock they are purchasing in order to place their stock order.
Under the new policy, clients can have the necessary amount of cash in any IBKR-supported currency (e.g., a US stock trade can be executed versus a EUR cash balance), and IBKR will coordinate the necessary forex trade in the amount required to settle the trade on your behalf.
For example, if you wish to purchase a US stock and you only hold a EUR cash balance, IBKR will execute the stock trade against your EUR balance. After you place your US stock trade order, we will execute a EUR/USD forex trade to convert the necessary amount of your EUR balance to USD to settle the stock trade.
The automatic currency conversion required to settle your stock trade will be performed by IBKR using a conversion rate that is determined based on the prevailing foreign exchange market rates at the time of execution. However, please note that the conversion rate applied by IBKR may be adjusted from the standard market rate to account for any differences between the settlement cycle for your stock trade and the typical settlement cycle for that currency pair. This rate adjustment allows IBKR to manage the associated risk and costs.
The specific costs and charges applied by IBKR for these automatic currency conversion trades are transparently outlined on the Commission and Fees page of our website. We encourage you to review this information to understand the applicable rates and fees for your trades fully. This change will streamline the trading process for our clients, eliminating the need for pre-trade currency conversions and ensuring a more convenient and hassle-free trading experience. Clients preferring to avoid the new functionality should maintain a sufficient balance settled in their account of the trading currency of the stock they are purchasing.