Not in the way most people mean. Interactive Brokers is an investment brokerage, not a money transfer service: it converts currency inside your own account and pays it out to a bank account in your own name. Sending money to somebody else — a solicitor, a supplier, a relative — is a restricted process with a short list of permitted purposes, and each request needs approval.
What Interactive Brokers lets you do with currency
Three things, and it is worth separating them.
You can convert one currency into another inside your account. IBKR charges a published commission of 0.20 basis points of trade value with a Tier I minimum of USD 2.00, on prices passed through from its liquidity providers (Interactive Brokers commission schedule).
You can withdraw that currency to a bank account you hold in your own name. IBKR allows two free withdrawal requests per calendar month; after the second, a bank transfer costs £7.00 in sterling, €8.00 in euros or $10.00 by USD wire (IBKR other fees).
And you can trade currency as a position. IBKR’s UK product page describes spot currency as a way to “profit from currency fluctuations by buying low and selling high”, and warns that “there is a substantial risk of loss in foreign exchange trading” and that “your losses may exceed the value of your original investment” (Interactive Brokers U.K. Limited).
What is absent from that list is paying a third party as a normal function.
Can you withdraw from Interactive Brokers to someone else’s account?
Only for specific purposes, and only with approval. IBKR’s client documentation lists the third-party withdrawals it will consider: to a spouse, parent, sibling or child of the account holder; from a trust account to a beneficiary; home purchases and mortgage payoffs; payment of certain account expenses; tax payments; and IRA qualified charitable distributions.
It also states plainly what it will not do. IBKR “will generally not approve” third-party withdrawals for private investments, loan repayment, withdrawals to businesses owned by the account holder, payment for purchases of goods or services, or transfers to individuals outside that family relationship (IBKR Client Portal documentation).
Where a withdrawal does qualify, there are two approvals rather than one. The third party’s details are submitted and approved first, and the withdrawal request is then separately subject to approval. Only wire or cheque withdrawals are permitted to a third party.
What does that mean for a real payment?
Take the payments people actually need to make and check them against the list.
| Payment | Where it sits |
|---|---|
| Deposit to your own euro account, then pay onward yourself | Permitted — it is your own name, then a separate transfer |
| Money to a spouse, parent, sibling or child | On the permitted list, subject to two approvals |
| Completion funds for a home purchase | On the permitted list, subject to two approvals |
| An overseas supplier’s invoice | Payment for goods or services — generally not approved |
| A payment to your own limited company | A business owned by the account holder — generally not approved |
| A friend, a builder, or a lender being repaid | Outside the permitted relationships — generally not approved |
For most people the practical route is the first row: convert, withdraw to your own foreign-currency account, then make a second international payment from there. That works, but it means holding and verifying that account in advance, paying a second set of charges, and answering a second set of checks — with the clock running if there is a completion date attached.
When does using a brokerage account make sense?
When the money is already there and it is coming back to you.
If you have sold US-listed holdings and hold dollars in a brokerage account, converting and withdrawing to your own sterling account is straightforward and inexpensive. Our guide to repatriating foreign stock and ETF proceeds to the UK covers that sequence and the tax points that come with it.
It stops making sense the moment the destination is someone else’s account, or the date is fixed by a contract rather than by you.
What a currency broker does differently
A currency broker’s core function is the one a brokerage restricts: converting an amount and paying it to a named beneficiary, on a date you specify.
It also lets you fix the rate in advance. A forward contract secures a rate for a payment up to 12 months ahead, which matters because the rate move is far larger than any fee. At an illustrative 1.17, €400,000 costs £341,880; at an illustrative 1.11 it costs £360,360 — £18,480 more for the same purchase.
And the compliance sits with the firm arranging the payment rather than with you. Cambridge Currencies was founded in 2023 and operates with FCA-authorised partners Currencycloud (FRN 900199) and ScioPay (FRN 927951); client funds are safeguarded by our FCA-regulated e-money partners at a credit institution, as set out on our safeguarding page. Every transaction is completed by phone with a dedicated specialist.
Frequently asked questions
Can I send money to a friend from Interactive Brokers?
Generally no. IBKR’s permitted third-party relationships are a spouse, parent, sibling or child of the account holder, plus trust beneficiaries. Transfers to individuals outside those relationships are listed among the purposes it will generally not approve.
Can I pay an overseas invoice from Interactive Brokers?
IBKR states it will generally not approve third-party withdrawals for payment for purchases of goods or services. An invoice from a supplier or contractor falls into that category.
How long does an Interactive Brokers third-party withdrawal take?
IBKR does not publish a timeframe, and the request passes two approval stages — the third party first, then the withdrawal itself. Where a payment has a contractual deadline, that is the variable to plan around.
Is it cheaper to convert currency at Interactive Brokers?
The conversion commission is low — 0.20 basis points of trade value, minimum USD 2.00. Whether the overall transfer is cheaper depends on what happens next: the withdrawal, the onward payment if the funds must land in your own name first, and the rate you converted at, which typically moves the total far more than any fee.
Can I fix an exchange rate at Interactive Brokers for a payment next year?
Not as a delivered payment contract. A forward contract commits both sides to exchange an agreed amount at an agreed rate on an agreed date for a payment you need to make. Holding a position through tradeable instruments leaves the execution, the margin and the risk with you.
Is Interactive Brokers safe for large sums?
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority under FCA Register Entry Number 208159. Being properly regulated as a brokerage is a different question from whether a brokerage account is the right route for a payment. Our guide on how to check a currency broker is legitimate covers the checks to run on any firm handling a large sum.
What is the best way to send a large sum abroad instead?
For a payment to a named third party with a date attached, a specialist currency broker is built for the job — it pays the beneficiary directly, can fix the rate ahead, and handles the checks. See our guide to exchanging large amounts of currency, and the live rate on the GBP to EUR page.
Moving money rather than trading it
If you are holding currency in a brokerage account and need it to reach somebody else, speak to a Cambridge Currencies specialist about the payment itself — the beneficiary, the deadline and the rate. Every transfer is arranged by phone with a dedicated dealer. Get in touch to talk it through.
