If you have an IBKR portfolio that's fully in USD, and you prefer adding money (CHF) / buying shares weekly, rather than monthly: Wil this incur higher cost (for example, for currency conversions)? Or is it the same cost in the end, for the same amount of total money converted?
dollar-cost averaging: more cost?
- Thread starter Riches1
- Start date
Hi Riches
If you invest weekly, you will pay more in transaction fees than if you invest monthly, yes.
However, depending on how you trade, the difference may be very small. For instance, an automatic currency conversion will be very cheap (possibly cheaper than four manual conversions). And buying US ETFs will cost a minimum of 0.35 USD, so it will not make much difference whether it's 1.40 USD per month of 0.35 USD.
If you invest weekly, you will pay more in transaction fees than if you invest monthly, yes.
However, depending on how you trade, the difference may be very small. For instance, an automatic currency conversion will be very cheap (possibly cheaper than four manual conversions). And buying US ETFs will cost a minimum of 0.35 USD, so it will not make much difference whether it's 1.40 USD per month of 0.35 USD.
Chiwa_09
New member
If your IBKR portfolio is in usd and you’re adding CHF weekly instead of monthly the main difference could be in the currency conversion fees. IBKR charges a small fee for each conversion, so doing it weekly might cost slightly more overall than converting a larger amount monthly. That said, weekly contributions can help smooth out exchange rate fluctuations, which might make it worth it