10/6/2023
Interactive Brokers is one of the most popular online trading platforms among traders and investors due to its low commissions, access to multiple international markets and advanced trading platform.
Founded in 1978, this Connecticut-based company has become one of the leading global electronic brokers and one of the most awarded.
If you are considering investing in the U.S. stock market or other foreign markets, opening an account with Interactive Brokers may be a good option. Its wide range of products, such as stocks, ETFs, bonds, mutual funds, futures, forex and CFDs is available to residents of multiple countries.
You may be interested in: How to open an account with Merrill Edge?
In addition to competitive commissions, it stands out for offering a sophisticated desktop and mobile platform for executing trades and analyzing market data in real time. Its advanced tools allow investors to design and automate complex trading strategies.
In addition to competitive commissions, it stands out for offering a sophisticated desktop and mobile platform to execute trades and analyze market data in real time. Its advanced tools allow investors to design and automate complex trading strategies.
Requirements to open an account with Interactive Brokers
To open an account with this broker, there are several requirements you must meet:
- Be over 18 years old. In fact, it only opens accounts to people of legal age.
- Legal residence. You must have legal residence in the country where you apply for the account. Interactive Brokers operates in more than 200 countries.
- Identity documents. You will need to provide a copy of your identity document, proof of address and other personal information.
- Minimum deposit. This broker requires a minimum initial deposit that can vary between $10,000 and $100,000, depending on the country.
- Knowledge test. To trade margin and complex instruments, you will need to pass the IB knowledge test. This exam measures your trading skills.
- Pass verification. Interactive Brokers performs a background check on all prospective clients before approving an account.
How long does the IB identity verification process take?
The time it takes to complete the identity verification process can vary depending on several factors, such as the number of applications they are processing at the time and the complexity of the identity verification.
You may be interested in: How to invest in the S&P 500?
In some cases, the process may take several days or even weeks. However, Interactive Brokers strives to process applications in a timely and efficient manner, and provides updates on the status of the application through its website and email.
If you have any questions or concerns about the identity verification process, you can contact customer service for more information.
Basic steps to create an IB account
Opening an account with Interactive Brokers involves several important steps:
Preparing the documents.
You need to have on hand a scanned copy of the identification documents you will use to open the account. This could be a passport, driver's license, or any other form of official identification.
Create an online application
You need to visit their website and start filling out your application from the "Open Account" button. This will include informing them about your financial status and investment experience, as well as choosing the type of account you want to open.
The process can take a while, because there is a lot of information to fill out and some tests for you to demonstrate your investment knowledge. So we recommend that you apply when you have enough time to take it easy.
Verification of the application
Once you have submitted your application, Interactive Brokers will review it. This process can take several days as the company takes KYC very seriously and makes sure that your details are correct and meet the requirements.
Initial Deposit
After your application is approved, you will need to make an initial deposit to start trading.
These are the basic steps that most people have to follow to open an account with Interactive Brokers. However, the exact details may vary depending on your specific situation and the type of account you want to open.
Advantages of opening an account with Interactive Brokers
Interactive Brokers is one of the most popular and highly rated online brokers worldwide. Here are some of the advantages of opening an account:
- Wide variety of financial products: it offers everything from stocks and ETFs to futures, CFDs and Forex trading. This allows investors to diversify their investment portfolio with low commissions.
- Low commissions: it is known for its low commissions and commission-free trading offers. This makes it an attractive option for active and advanced traders looking to reduce commissions.
- Secure and reliable platform: it has a secure, reliable and very powerful platform. In addition, it offers several trading platforms, including Client Portal, Trader Workstation and mobile App.
- Access to global markets: it allows access to a wide variety of markets and tradable assets in 135 markets and 33 countries.
- Analysis tools: offers a wide variety of tools available to analyze your portfolio, see all your movements, make comparisons, among others.
Opening an investment account with an international broker like Interactive Brokers allows you to access a wide range of financial products in global markets. However, it has somewhat strict requirements for its clients.
This should not be seen as something negative. This broker is designed for traders with some experience, not for beginners. Its requirements ensure that its users have the necessary knowledge and discipline to trade these markets responsibly.
IB commissions for trading on the stock market
Interactive Brokers is very transparent about the costs it applies in its operations, offering a complete section of publicly accessible rates so you can consult any type of commission or cost of their services.
There you can check the cost of trading in all types of products, such as stocks, ETFs, Options, Futures, Warrants or Forex, and markets such as the United States, Canada, Mexico, most European markets, China, Japan, Korea, Australia and more.
No commissions with IBKR Lite
For U.S. residents there is the possibility to trade stocks and ETFs listed in the U.S. markets at no cost, with no trading limits or minimum amounts. You also pay no account management or inactivity fees.
In addition, with this option you also have access to other markets at a reduced cost and receive a remuneration for the balance of your account that you are not using to invest.
Español: ¿Cómo abrir una cuenta en Interactive Brokers para invertir?