I’m a US American planning to start buying some ETFs and bonds for retirement savings. I’ve already funded the account with a chunk of JPY and so I just wanted to make sure I’ve got the buying process down. If you’re an Interactive Brokers user with experience, please let me know if this is correct.
Let’s say I’ve funded my account with 100,000 yen, and the conversion rate is 100 yen to 65 cents. I want to buy as much STONK as possible, and its price is 100 dollars.
Here’s the game plan:
1. convert all my yen to USD with the going rate (650 dollars)
2. purchase 6 shares of STONK (I’m planning to use the “Market” strategy since I’m just gonna buy & hold)
3. have 50 dollars leftover
I guess I’ve got two questions:
– Do I need to track the leftover dollars that will sit in the account to report during tax time? I don’t plan to ever convert it back to yen since I’ll just use it to fund a purchase at a later date.
– If STONK supports fractional shares then I could buy 6.5 shares, I’d prefer to do this if it’s simple but would it cause a headache for tax reporting? I’m imagining a situation where the e-tax form only allows whole numbers or something like that.
edit: currency conversion math hard
by YouMeWeThem