Interactive Brokers is one of the best international brokers offering the lowest commission of 0.005 USD/Share or a minimum of $1 per trade. The broker is suitable for traders who want to trade with international shares.
Steps to Open an Account on Interactive Brokers:
Opening an account on Interactive Brokers is easy. You will need to visit the website of the broker. There you will click on “Open an Account.” From there you can get all the information needed to open an account by clicking on “What you need.” You can also select from the option “Other applications” or can directly start the process of setting up an individual account by clicking on “Start Application.” After filling all your details, click on “Create Account.”
You will then be asked to verify your email for which you will need to go to the email and click the link in the email received from the Interactive Brokers. Once your email is verified, you will again be brought to the page where you will need to log in again to finish up the details of the application. The website will then ask you to choose the customer type and you can pick any option from Individual, Joint, and retirement account.
You will need to fill in all your personal information including address, contact information, personal information, employment, account information, security questions, and tax residency.
Then you will be asked a series of questions to find out your tax status to determine how you will be taxed on your trading income.
Next, you will need to fill up the employment and income details. Under account information, you can select either “cash” or “margin.” A cash account is suitable for beginners as there is limited risk involved.
Margin accounts on the contrary are riskier and should better be left for the experienced traders.
Once the section “About You” is complete, you will get an SMS with a 6-digit code to confirm your phone number. Next, you will need to fill out the employer’s information to confirm that you are trading as an individual and not as someone with the inside knowledge of the publicly traded companies.
Now fill out your income and net worth. Interactive Brokers need you to have at least $20,000 in liquid to allow you to trade in stocks. Underinvestment objective and intended purpose of trading you can either select “Growth”, “Hedge” or “Profits from Active Trading and Speculation.”
Select the investment products that you like to trade-in. Now again check your filled details and give consent to the terms and conditions. For signature, type your case-sensitive name.
Now you just have to upload your identity proof, residential proof, and fund your account.
What Information is Required to Open an Account?
- To open an account on Interactive Brokers, you will need a PDF or JPEG of your proof of identity and date of birth which can include passport, driver’s license, national id, alien identification green card.
- You will need PDF or JPEG of proof of your address which may include a bank statement, brokerage statement, security system bill, government-issued letters, utility bill, evidence of ownership of property, homeowner’s, or renter’s policy, documents, and bills, driver’s license, etc.
- Details of your bank account which may include your bank account, and bank account number from which you are going to fund your account.
Interactive Brokers Minimum Deposit
For standard accounts, Interactive Brokers has no minimum deposit while for margin accounts, the minimum deposit needed is $2,000.