How to Open an Interactive Brokers Account?

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How to open an Interactive Brokers account

In 2020, Swiss investors will lose access to U.S. domiciled Exchange Traded Funds (ETFs). This is because of a new set of laws from the Swiss government. These laws are following the ones already impacting European investors. Unfortunately, DEGIRO decided to implement these laws in advance and therefore I already lost access to these funds one year in advance. Therefore, I decided to create an Interactive Brokers account.

Interactive Brokers is an excellent United States broker. It is known for its cheap fees and its excellent range of offered investment products. It is being used by many personal finance bloggers for instance.

In this post, I am going to go over the reasons I need to open a second broker account. I am also going to go over some detail about Interactive Brokers. Especially, I am going to go over the details of how to open an Interactive Brokers account. It is not very difficult but there are a few things you need to know before you start your application.

Interactive Brokers

Interactive Brokers Logo
Interactive Brokers Logo

So what is Interactive Brokers (IB)? IB is a brokerage firm, from the United States. It was created in 1978 in New York, more than 40 years ago! IB is the largest brokerage firm in the United States and the leading foreign exchange (forex) broker. Interactive Brokers offers access to many instruments such as stocks, bonds, options, futures, futures options and even more.

It is a very well-known broker with a very good reputation. It is known to be cheap compared to its competitors. I have already compared IB and DEGIRO in the past. This showed that it could even be cheaper than DEGIRO the broker I am currently using. I was thinking DEGIRO was cheaper. A very important thing with IB is that, by default, they do not lend your shares to other people such as DEGIRO does by default. You also have the option of lending shares and you will get some of the money of the lending. But, you have the choice, which is good!

Why open an IB account?

So, why am I opening an IB account? I already have a DEGIRO broker account. And I am mostly satisfied with DEGIRO. However, recently, DEGIRO cut access to U.S. funds from Swiss investors! Since my portfolio is made of about 80% of U.S. Exchange Traded Funds (ETFs), this is a big problem for me. Normally, they should have kept us access at least until 2020. But for some reasons, they decided to cut this access. And since they did not communicate at all on this subject, I was pretty angry about it.

Therefore, I decided to open an Interactive Brokers account to continue to trade with my ETF portfolio for one more year. However, this is not the only reason I wanted to change. First, I have discovered recently that Interactive Brokers can be cheaper than DEGIRO. This could save me money in the long-term. Finally, DEGIRO only accepts money from a single bank account. With IB, you can transfer money to your account from any bank account. Since I will receive some money in USD once I sell some shares from my company, this is important to me to transfer USD without costs.

So, let’s see how can one create an account on IB.

Create an Interactive Brokers account

First, prepare some time in front of you. The account creation process on Interactive Brokers is not as easy as opening an account on DEGIRO or other simple brokers. You will need to answer many questions and you will need to wait a day for your account to be funded.

First, you can go to the account creation page and choose to Start Application for an Individual, Joint and Retirement accounts. I needed an Individual account, but maybe you will need type such as Joint if you plan to do it for you and your spouse. The procedure should be mostly the same but I never tried for other accounts than Individual.

On the first page, you will need to enter your email, a user name and your password for the account. They have weird conditions for the user name, it needs to be between 8 and 9 characters in length. And it needs to contain at least three numbers. I think it is a bit dumb, but it is only a user name. It will not matter much in the future. The password is also a bit limited since you cannot use special characters. I would recommend to make it at least 20 characters long. This is a very important password to a secure account! Make sure to remember it correctly as well!

You also need to enter your country of residence. If your country of legal residence is different, you also need to enter it. You can then confirm the first page.

At this point, they will send you an email to confirm your email address. Just check your mail and choose to continue the application.

Personal information

On the second page, you will have to set your account type. I set to Individual for my needs. You can check the kinds of account to make sure you choose the one according to your needs.

Then, you will have to set the general kind of personal information. There is nothing special here, only the thing you are used to entering on each website. You will have to set your personal addresses as well. Be aware that since this will be related to your taxes in the end, it is very important to enter them correctly. You will also need to enter a valid phone number. This phone number will be used for authentication, so once again, be sure to enter it correctly.

IB has several kinds of accounts. You will need to select the account type you want. The basic kind of account is a Cash account. This is the account you probably want. It means you need to have the money before each trade. There are also Margin accounts. Margin means you will use leverage for investing with money you do not need.

Another thing you need to configure when you create an IB account is the base currency of your account. I am going to make most of my payments in Swiss Francs (CHF), therefore I went with CHF as my base currency. You can always convert money from your base currency to any other currency.

Now, you will also have to set up three security questions. You will need these questions if you ever need to recover your account. This is once again, a totally standard procedure. Make sure you choose questions from which the answer is not ambiguous!

Investment Questions

After this, you need to answers many questions about your finances. You need to set how much your net worth is and how much income you have. You also need to say what are your objectives for your investments. For instance, you may want to invest for an appreciation of capital or for fixed income. I am not totally sure what IB is doing with all this information. I would advise to simply answer them with honesty.

You also need to set which instruments you need to invest in. For instance, if you want to invest and Stocks and Bonds, you need to select these options. Personally, I only selected stocks. There are many more options like Stocks, Bonds, Options, and Futures. You also need to select from which country (stock market exchange), you want to invest in.

You also need to confirm your phone number with a code.


At this point, you will have to agree to all the rules that IB has for trading. Ideally, you may want to read them. But hey, who reads them?!

If you want, you can also join the Stock Yield Enhancement Program. This will allow IB to lend your shares to other people. With that, you will receive half of the interests of the lending. Of course, there is a slight risk to that and you may also not be able to sell your shares when you want or need to. Personally, I did not agree with that. But that may be something I am going to consider in the future.

At this point, Interactive Brokers will want to get proof of your identification. For this, you can upload a driving license, an ID card, a passport or an alien ID card for IB to confirm your identity. On the same page, you will also have to enter information about your tax status. You will also have to fill information about your employer and your job occupation. Normally, you also need to submit something as a proof of address. But for some reasons, I was not able to complete this at this point.

Fund your account

Your account will only be fully activated once it receives funding. You need to deposit the first amount of money in order for IB to validate your account. First, you need to declare how much money you are going to deposit. Then, IB will give you all the information necessary for the payment.

However, you will need to change the bank account. For some obscure reasons, IB always tells you to deposit the money on a U.K. bank account. However, they have a Swiss bank account. If you deposit the money on the Swiss bank account, there will not be any fees! Therefore, you need to change the IBAN to CH2089095000010569674. This is their Swiss bank account. If you want confirmation (and you should want it), you can check this post by Mr. Retire In Progress that recommends the same bank account.

And do not forget to include the “Further Benefit to XXX” line! Otherwise, the money will not directly go to your account and you will have to contact them to fix the issue. You will need to do that for all your future deposits to your Interactive Brokers account.

Finalize your account

After you have funded your account, there are still a few more things you can do.

First of all, you can configure the market data. You should set your market data status to non-professional. And you should check that you are not buying any market data. Unless you plan to day trade, you do not need any of this data. You do not want to pay for it.

You can also configure your mobile phone to use it as two-factor authentication. One very good thing is that you have to use two-factor, you have no choice. It is great. Because it is an essential part of online security. First, you need to install IBRK Mobile on your phone. This application is available for Android and iOS. Once you installed the application, you can register the application as two-factor for your account. You will have to log in with your user and password. You need to enter the code you received by SMS. Finally, you can then choose a PIN for your future two-factor authentication. Make sure to remember that PIN since you will have to use it for each of your connection to Interactive Brokers.

Wait for your account

At this point, you only need to wait for IB to create and fund your account. It should not take too long. For me, it only took one day for my account to be created and funded. It is quite fast. The next day, I could directly make my first trade.

The only thing that remains at this point is to configure the Pricing System. I recommend you use the Tiered Pricing system. IB is cheaper than DEGIRO when you use the Tiered Pricing system. You can do the change in your Account Settings. If you prefer the more predictable Fixed Pricing, you can also opt for it.

Here are my settings just before I made the change to Tiered pricing:

Interactive Brokers Account Settings
Interactive Brokers Account Settings


This is it! I know have an Interactive Brokers account. I have not transferred much money, just enough for a single trade to test the system. For now, I am still going to keep my DEGIRO account. But I will not do keep it forever. I am still undecided as to how to transfer my money between the two brokers.

At least for now, I have once again access to U.S. Exchange Traded Funds such as VT which makes the largest part of my portfolio. I have done a single trade on IB since for now, we are still low on cash. Once we are done replenishing our cash fund, I will move more funds to my new IB account.

To learn more about Interactive Brokers, read my guide to Interactive Brokers multiple user interfaces.

Interactive Brokers is much more complicated to use than DEGIRO. In fact, while DEGIRO has a simple web application and a mobile application, Interactive Brokers has four different user interfaces! Later on, I will make sure to write an article on how to buy an ETF on Interactive Brokers. I did the same for DEGIRO, but on DEGIRO it was much easier.

What do you think about Interactive Brokers? Do you already have an account? If not, which broker are you using?

Mr. The Poor Swiss

Mr. The Poor Swiss is the author behind In 2017, he realized that he was falling into the trap of lifestyle inflation. He decided to cut on his expenses and increase his income. This blog is relating his story and findings. In 2019, he is saving more than 50% of his income. He made it a goal to reach Financial Independence. You can send Mr. The Poor Swiss a message here.

31 thoughts on “How to Open an Interactive Brokers Account?”

  1. Nice. Glad you made the switch! Welcome on IB! A real broker! ;-)

    When I opened my account, it took me something like almost 1 hour, between all the questions and the documents needed. It was a real pain in the ass as we say. I’ve never done a registration like that before haha.

    I hope you will consider using their TWS (Trader Workstation) app for investing. It’s a scary Java app, at first sight, but much more feature complete than the rest, there is more informations and honestly, not hard to use and much better looking than their WebTrader. In fact, I find the last one quite scarier…

    The only thing I suggest, is double checking how to convert currency correctly, you need to use FXCONV instead of IDEALPRO when converting USD to CHF on the forex. Not sure if you can do it with the WebTrader. Else you can end with virtual negative balances… Maybe you can do some tests with your paper trading account.

    Also I couldn’t say it better so I’m quoting someone from internet : “And really you want to learn how to use TWS anyway – it’s a hell of a lot better.”

    Good luck.

    1. Hi Cashflow,

      As you said, it’s a bit a pain in the ass. I’ve never seen any registration so complete. But it’s pretty straightforward overall.

      I will definitely test TWS. So far, the only things I have seen from it is pretty overwhelming. But I am going to give it a try.

      Thanks for the tip about conversion. I will take a closer look at this the next time I do a currency conversion!

      Thanks a lot of sharing

  2. I did not find the way of using FXCONV on the TWS “android” app but only on the PC desktop version. If anyone can share an idea on that it would be highly appreciated. Cashflow is right, use the FXCONV for currency converting. The IDEALPRO also works but it ends up in a currency position instead of cash balance. It does not harm but gives a headache by reading out balances.

        1. Hi Marc,

          Thanks for the link. It is very helpful indeed!
          My only problem is that I do not use the TWS app most of the time. I prefer to use the WebTrader or even simpler the Account Management interface. And from these two interfaces, only IDEALPRO is available.

          Thanks for stopping by :)

  3. Great Post,

    just a question what will happen after 2020. Will we need to sell all our US based ETF? Or can we keep them until we want to sell them?

  4. Hi the Poor Swiss,
    Did you make up your mind yet as to how to transfer your capital from Degiro to IB?
    I am exactly in the same situation as you…
    Cheers from Genf!

    1. Hi Jean-Pierre,

      Yes, I did. I started selling my funds and buying them back. However, I do not think it is a good idea anymore. There is really too much risk of market price change between the time you sell and the time you have the money again to buy them back.

      Unless you have a very small portfolio, I would not advise to sell and buy back.

      Good luck with your transfer!

  5. I am sorry, but I am a bit puzzled by your explanation: “They have weird conditions for the user name, it needs to be between 8 and 9 characters in length. And it needs to contain at least three numbers. I think it is a bit dumb, but it is only a password”. Are you talking about name or password here?

  6. Hi Mr. The Poor Swiss.

    Thank you for the article (contains a lot of useful information) and apologize for the large number of questions I’m asking:

    1. “Another thing you need to configure when you create an IB account is the base currency of your account. I am going to make most of my payments in Swiss Francs (CHF), therefore I went with CHF as my base currency. You can always convert money from your base currency to any other currency.”
    Does it mean that when you transfer your money from your Swiss bank to IB account through IBAN to CH2089095000010569674, there is no fee for that at all? In other words, if let’s say you send 1000 CHF, you will get exactly 1000 CHF in your IB account, right?
    The second question: since US ETFs are sold in USD, how do you buy them? You mentioned: “You can always convert money from your base currency to any other currency”. Is the currency exhcnage rate between CHF and USD good enough? Do you have to pay any commission for this conversion? What is IDEALPRO and FXCONV?

    2. “You need to set how much your net worth is and how much income you have.”
    Does IB check it some how? Do they require any supporting documents? May I simply answer “it’s none of your business, guys”?

    3. “You also need to select from which country (stock market exchange), you want to invest in.”
    If I want to buy US ETFs like VT, SPY or IVV then should I select NYSE? If next year (2020) I lose access to US-domiciled ETFs and will decide to continue with European domiciled ETFs, should I select SWX? May I add another stock exchange later?

    4. “On the same page, you will also have to enter information about your tax status”
    What does it mean?

    5. “Once we are done replenishing our cash fund, I will move more funds to my new IB account. At this point, I will make sure to write an article on how to buy an ETF on Interactive Brokers.”
    Since I am about to create an account in IB and make my first purchase of ETFs, I look forward to reading this article.

    1. Hi,

      You’re welcome :)

      I am glad to answer your questions!

      1. Yes, that is totally correct. I never paid any fee to transfer CHF to my IB account :)
      2. You have to convert the currency. In Interactive Brokers, you can make a trade for almost any currency. The exchange rates are extremely good at IB. Some people use IB only to make currency conversion. You have to pay a small fee indeed. I have paid about 3 dollars last time I converted 10’000 CHF into USD. IDEALPRO and FXCONV are different exchanges for making currency conversions. In practice, for simple users like us, there is no difference.
      3. I do not think they check how much you got, no. They do not require any supporting document. I do not think you can answer that, no.
      4. You can add other exchanges later on yes. I have selected U.S. and all of Europe as my countries to invest in.
      5. It’s simply in which country you pay tax and your tax number (social security number, AVS)
      6. The article is coming and in the pipeline. It should be published by the end of the month!

      I hope that helps!

      1. Hi Mr. The Poor Swiss.

        Thank you for the information.

        Let me ask you some more questions.

        I’ve just opened my IB account and I am about to fund it (bank wire). So, first of all I see the following message: “CHF carries a negative interest rate as imposed by the relevant central bank. This means that you will actually pay interest to keep this currency with the broker rather than earning interest (this is because the broker, in turn, must pay interest to the banks in which it keeps client funds denominated in this currency).” Does it mean that I have extra fees just because I selected CHF for my base currency? What do you think abot this?
        Second question: I am requested to fill the following fields: Sending Institution (Required), Account Number (Optional), Nickname (Required). What is this? Where can I find this information? I want to send money from my PostFinance account. Does acount number equal to the last 9 digits of my IBAN?
        Thank you.

        1. Hi Aleksei,

          You are welcome.

          a) It is not extra fees, no. However, your balance in CHF at Interactive Brokers will have a negative interest. If the current interest is -0.5%, you will lose 0.5% of your CHF cash every year. Since you should generally not carry a large balance in cash in your broker account, this should not make a big difference in the long-term.
          b) The Institution should be PostFinance. You can let the Account Number empty, this is what I did with my Migros account. And the Nickname, you can put what you want, this is the just the name inside IB.

          I hope that helps

          Thanks for stopping by!

          1. Hi Mr. The Poor Swiss

            If an investor will have in his account 150.000 CHF in cash , he will pay 1,238 % for the balance above 100.000 = 50.000 CHF in this example .(negative interest !)
            Is it possible for the investor to lend that amount (50.000 CHF) through IB and the borrower ( another investor ) to pay that negative interest ? instead of the owner ?

          2. Hi Rick,

            I do not know if you can lend cash on IB. I would think you cannot.

            However, why would you have so much cash on IB? I am not sure it is a great place to store cash, especially in CHF. You could store it in USD in order to make some profit.

            If I had so much cash, I would store it in my bank account.

            Thanks for stopping by :)

  7. What is the minimum amount needed to put into the account? Im new to this..if i was to buy shares and leave the account dormant for a while, do they charge for inactivity?

    1. Hi Sair,

      There used to be a minimum of 10’000 USD, but that is not the case anymore. You can now open a Cash account with 0$.
      However, they have inactivity fees of 10 USD per month if you have less than 100’000 USD in assets.

      Let me know if that helps :)

  8. Hi Mr. The Poor Swiss,

    Is not more easy to send money by Revolut to the IB, in USD money currency?
    I mean, using Revolut to change currency and trade in BI in USD currency.


    1. Hi,

      That’s a good point. You can indeed send CHF to Revolut, exchange it to USD and then transfer it to IB.
      I don’t think it is simpler since it adds a new step and also adds at least one more day delay. But it will save you about 2 CHF on each exchange indeed.
      Moreover, this can be rather large transfers. I feel a bit more comfortable with the large transfer going from my bank to IB directly.

      But this is a very good alternative indeed.

      Thanks for stopping by :)

      1. I just started my journey with IB and I think if you can wait (which usually you can, if you buy monthly/quarterly for the long term) and the conversion is below 10k/month (revolut limit) then imo it’s better to go with revolut.

        Over the long term if each month you will save 2 USD, it will compound

        1. Hi Trebor,

          Do you mean to say that it’s better to do the transfer each month with Revolut instead of sending CHF to IB and then using to do the transfer?
          It’s possible indeed if you never transfer more than 10K in one month. I would not do it for 2 CHF per month though. I do not to transfer such amounts with Revolut.
          But yes, even 2 CHF per month will compound nicely if invest in the stock market.

          Thanks for stopping by!

  9. imaginary scenario :
    1.investor ABC has 300.000 CHF invested in Novartis , Roche , Nestle
    2.investor Rick invest in Nasdaq futures and need cash for collateral just in case of a posible margin call .
    3. a correction is coming in the next 6 months .
    4. investor ABC decide to move in cash until the “storm” will go away so he will have 300.000 CHF in cash and he will pay/lose 1,238 % for 200.000 CHF for the next 6 months .
    5.investor Rick decide not to sell but stick to his investments through the “storm”.Because he will maybe need extra cash just in case of a posible margin call , investor Rick will like to borrow some cash if is necessary . And he is willing to pay , lets say 3 % .
    6. the benefit for investor ABC = he will not have to pay 1,238 % for those 200.000 CHF
    7.the benefit for IB = IB will get 3 % from investor Rick
    8.the benefit for Rick = will get through the “storm”
    everybody wins
    The idea is coming from this: IB has a “Stock Yield Enhancement Program ”
    Lets say investor ABC has shares in Novartis . He can lend those shares to IB and IB will further lend those share to an investor who will sell short those shares .
    Investor ABC will still own those shares , he will still get the Novartis dividend and in top of that investor ABC will receive an extra yield from the Short seller .
    Example :
    1.investor XXX want to short 1000 shares Novartis
    2.he will borrow those 1000 shares from IB and IB will borrow those shares from investor ABC with his approval of course .
    3.investor XXX ( the short seller ) will pay 4 % interest for the value of those borrowed shares
    4. IB will split the 4 % and IB will retain 2 % and investor ABC will get the other 2%
    5.During that period , investor ABC will still own the shares and he will still get the dividend ,plus an extra yield .
    Can be done the same with cash too ?
    Of course does not make sense if the investor ABC has US $ because IB pays interest for cash in US $ ( or change his CHF in US $ ) but in future it is possible that IB will not pay interest for US $ either .
    How much a Swiss bank will pay in interest ?

    1. Hi rick,

      I guess this makes sense indeed. It’s still market timing and it could end badly.

      Stock Yield Enhancement Program is really to yield shares, not cash. I did a little research, but I didn’t find anyway to lend cash in IB. The best thing you could do is transfer it to USD to get some interests and avoid negative interests. However, there is a currency risk of course.

      A Swiss bank will basically not pay any interest. The best right now are around 0.03% and they often do not pay interests after 100’000 CHF.

      You should probably ask IB about that.

      Thanks for commenting :)

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