How to Open an Interactive Brokers Account in 2025?
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(Disclosure: Some of the links below may be affiliate links)
Interactive Brokers is an excellent broker from the United States. It is known for its cheap fees and unique investment product range. It is being used by many personal finance bloggers, for instance.
It is currently the best broker that allows access to U.S. ETFs. And U.S. ETFs are the most efficient ETFs for Swiss investors.
In this guide, I review 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. And I also teach you how to optimize your account to save money!
Interactive Brokers
The broker you need to buy stocks and ETFs reliably and at extremely affordable prices. Trade U.S. stocks for as little as 0.5 USD!
- Extremely affordable
- Wide range of investing instruments
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, and more.
Interactive Brokers is a very well-known broker with an excellent reputation. It is known to be cheap compared to its competitors. I have already compared IB and DEGIRO in the past. This comparison showed that it is even less expensive than DEGIRO, the broker I used before.
An essential thing with IB is that, by default, they do not lend your shares to other people, such as DEGIRO does by default. But you have the choice, which is good! Indeed, you also can lend shares, and you will get some of the money from the lending.
If you want more information on IB, read my review of Interactive Brokers.
Why open an IB account?
So, why did I open an IB account? It is currently the best broker available to Swiss investors.
There are many reasons to prefer Interactive Brokers over other brokers.
- IB offers access to U.S. ETFs to Swiss investors, while many brokers are not.
- IB has excellent prices.
- IB offers access to many investing instruments.
- IB offers foreign exchanges at an excellent price.
- IB has an excellent reputation.
- IB has good financial strength.
So, we will see how one can 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 difficult, but it will take some time. You will need to answer a few questions, and you will need to wait a day for your account to be funded.
Interactive Brokers has several entities in Europe. The primary entity is IB UK, but one is in Luxembourg, and one is in Ireland, for instance. For Swiss investors, the best entity is IB UK because they offer access to a Swiss IBAN and give you access to US ETFs. For European investors, it does not make much of a difference.
First, go to the account creation page and click “Open account”.
On the first page, you must enter your email, user name, and password for the account. Make sure to choose a good password and user name.
I would recommend making your password at least 20 characters long. A long password is essential to secure your online accounts! Make sure to remember it correctly as well!
You also need to enter your country of residence. If your country of legal residence differs, you must also enter it. You can then confirm the first page.
At this point, they will email you 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 put it to Individual for this example. You can check the kinds of accounts to ensure you choose the one according to your needs. But most people will want either an Individual or a Joint account.
Then, you will have to enter the general kind of personal information. Nothing is special here, only what you are used to entering on each website. You will have to set your addresses as well.
Since this will be related to your taxes, it is essential to enter them correctly. You will also need to enter a valid phone number. IB will use this phone number authentication, so once again, enter it correctly.
IB has several types of accounts. You will need to select the type you want. The primary type of account is a Cash account, which is the type you probably need. A cash account means you must have the money before each trade.
There are also Margin accounts (IB has some good information about margin accounts). Margin means you can use leverage for investing with money you do not have. Unless you know what you are doing, I recommend a Cash account.
Another thing you need to configure when you create an IB account is the base currency. Since I make most of my payments in Swiss Francs (CHF) and live in Switzerland, I chose CHF as my base currency.
You can always convert money from your base currency to any other currency. The base currency only matters for the interface’s display. If you select CHF, you can still transfer USD and buy shares in EUR, for instance.
Currently, the CHF balance has a positive interest rate. If it becomes negative again, you will see a warning about the negative interest rate on CHF balances. You can get the current negative interest rate and limit here.
Now, you will also have to set up three security questions. You will need these questions if you ever need to recover your account. Make sure you select questions from which the answer is not ambiguous (but challenging to find)! This procedure is, once again, a standard procedure.
Investment Questions
After this, you need to answer questions about your finances.
You need to tell how much your net worth is and how much income you have. You also must say what your objectives are for your investments. For instance, you may want to invest for capital appreciation or fixed income. All this information is here for regulatory reasons.
You also have to set which instruments you want to invest in. For instance, if you intend to invest in stocks and bonds, you must select these options. I only selected stocks. Stocks, bonds, options, and futures are among many other choices. You must also select which country (stock market exchange) you would like to invest in.
For each of the instrument you intend to trade in, IB will ask you how much experience you have with it. I would not recommend lying, but I would recommend overestimating your experience. The reason is that if you put zero experience, you will likely not be allowed to trade. So, add a few more trades per year and a few more years of experience if necessary.
In some cases, these questions will be followed by a short investment test for some instruments. You can do it multiple time, so do not be stressed out, this is normal. If you do not know, do not hesitate to use the internet to pass it (or even ChatGPT).
You also need to confirm your phone number with a code.
Confirmations
At this point, you must agree to all the rules IB has for trading. Ideally, you may want to read them. But you probably will not!
If you want, you can also join the Stock Yield Enhancement Program. This program will allow IB to lend your shares to other people. With that, you will receive half of the profits.
Of course, there is a slight risk to that, and you may also be unable to sell your shares when you want or need to. I am not using that feature now. But I have tested this feature recently, and it works well.
At this point, Interactive Brokers will want 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. You will also have to enter information about your tax status on the same page.
You will also have to fill in information about your employer and job. Usually, you also need to submit something as proof of address.
Fund your IBKR account
IB will fully activate your account once they receive funding.
You need to deposit the first amount for IB to validate your account. First, you have to declare how much money you will deposit. Then, IB will give you all the information necessary for the payment.
Make sure you correctly copy the IBAN. With banking transactions, you should always double-check all banking information before transferring. The transfer will be free since they have a bank account in Switzerland!
And do not forget to include the line indicated by IB with your account number in it. Otherwise, the money will not go directly to your account, and you must contact them to resolve the issue. You must do that for all future deposits to your Interactive Brokers account.
Finalize your account
After you have funded your account, you can still do a few more things.
First, 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 this data. You do not want to pay for it.
One great thing is that you have to use two-factor authentication (2FA). You have no choice. You must configure your mobile phone to use it as 2FA.
2FA is an essential part of online security. First, you need to install IBKR Mobile on your phone. This application is available for Android and iOS.
Once you have installed the application, you can register it as a two-factor authentication for your account. You will have to log in with your username and password, and you need to enter the code you received by SMS.
Finally, you can then choose a PIN for your future two-factor authentication. Remember that PIN since you must use it for each connection to Interactive Brokers.
If you do not know about 2FA and why it is necessary, read my article about online personal finance and security.
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. It only took one day for my account to be created and funded. It is pretty fast. The next day, I could directly make my first trade.
Optimize your IBKR account
Now that you have access to your account, there are two more things to finalize in your account.
The first thing remaining at this point is configuring 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 make the change in your Account Settings. If you prefer the more predictable Fixed Pricing, you can also opt for it. There are some cases where fixed pricing is cheaper than tiered pricing.
Here are my settings just before I made the change to Tiered pricing:
The second thing applies if you are a Swiss investor and will invest in U.S. ETFs. In that case, you need to fill out the W-8BEN form. That is pretty simple. You can go into your Account Settings. There, you can click on Profile next to your name. Then, you must click the (i) blue button next to your name below Profiles. Then, you can click on “Update Tax Forms”.
They will then take you through the process, and you can fill out the W-8BEN tax form. This form will halve the dividend withholding from your American stocks and ETFs. This step is essential if you want to profit from the great tax efficiency of U.S. ETFs.
Some people have told me that it sometimes takes about one day for the account currency to be changed on the interface. You have to wait one day, and the issue should disappear. In the meantime, you may see some numbers in other currencies (likely GBP).
Another thing you can choose to do is to allow IB to lend your shares. By doing so, you will get 50% of the profits. This feature is called the Stock Yield Enhancement Program. However, there are some risks. I have tried it on and off over the last few years, but whether you think it is worth it is up to you.
Conclusion
The broker you need to buy stocks and ETFs reliably and at extremely affordable prices. Trade U.S. stocks for as little as 0.5 USD!
- Extremely affordable
- Wide range of investing instruments
The procedure is now complete! If you followed this guide, you now have an Interactive Brokers account.
With this great broker, we have access to U.S. Exchange Traded Funds such as VT, which makes the most significant part of my portfolio.
I have now been using IB for more than two years. And I am delighted with IB. Interactive Brokers is the best broker available to Swiss investors.
The next step is now to buy an ETF from Interactive Brokers. It is also relatively simple and only takes a little time.
What do you think about Interactive Brokers? Do you already have an account? If not, which broker are you using?
More reading
Should you opt for securities lending?
Many brokers offer an option to enable securities lending (lending your shares to other investors). We look at the pros and cons of this feature.
Interactive Brokers Review 2025: Pros & Cons
My honest and complete review of Interactive Brokers (IB), an excellent broker. Find out how good IB is and its pros and cons, and more.
Step-by-Step Guide: How to Easily Buy an ETF on Interactive Brokers
Detailed steps on how to buy an ETF from Interactive Brokers Account Management. Learn how to transfer money, exchange currency and buy ETF shares.
Learn easy ways to optimize your finances and save thousands in Switzerland with our exclusive e-book. Learn about the most cost-effective financial services tailored for savvy residents and expats!
Get Your FREE Swiss Money-Saving Guide
Hi,
First of all, many thanks for the article. I have one question. I just opened the IB account and I didn’t transfer any money into it yet, however I seem to be able to access it already.
You say that one of the optional steps is:
The second thing applies if you are a Swiss investor and will invest in U.S. ETFs. In that case, you need to fill out the W-8BEN form. That is pretty simple. You can go into your Account Settings. Then, you must click the (i) blue button next to your name below Profiles. Then, you can click on “Update Tax Forms”.
However I can’t seem to be able to find this setting, sorry. Can it be that the interface has changed in the meantime?
Thanks!
Hi Stelian,
Yes, it appears the interface changed since last time. Youm must first click on “Profile” and then you will to your profile(s) and then you can click the blue button (i) and you will finally get the “Update tax forms” button at the bottom. I will update the article, thanks for letting me know.
Hello Baptiste,
I followed your reco and opened an IB Account. I did not find it straightforward but thanks to your step by step advice I eventually managed. However I am now struggling in funding my account. I would like to fund it in USD, from a Swiss bank. There are several options, but those that are free of charge, require a US bank account. Does this mean that I will have to accept to pay a fee just for transferring USD from a USD account? Or am I missing anything?
Hi Barbara
That’s a good question.
I have always either transferred USD from a US account or CHF from a CH bank, I never did USD from a CH account. The transfer to the US bank account is often not free from a CH bank.
You could potentially use Wise as an intermediary if you have an account with them.
This was also discussed on the forums: Transfer USD from CH to IB
But there does not seem to be any miracle solution either.
Hi,
Is there a referral code to use? I will open my occunt in the following days.
Thanks!
Hi Javier
I am afraid I have no referral code for you to use that would give you any advantage. Thanks for asking!
Hi Babtiste, I just opened the IB Account a d am waiting for it to be released. Thanks a lot for your step by step guidance, which was super useful.
Barbara
Well done! I am glad my guide was helpful. Good luck with your investing!
Hi,
Thank you for this great article.
Where can I find the W-8BEN tax form? I navigated through my IBKR account and was unable to find it.
Best regards,
Leandro
It’s under Tax Forms. In most cases, you will have filled it during onboarding.
Hello Baptiste,
first of all thank you for your precious and amazing job in sharing. Chapeau!!
I am an Italian, resident in CH, and I have just opened an account in IB, with EUR as basic currency, since the majority of my liquidity is in EUR. I got in touch today with IB, about what opening an additional account, under my primary would mean. The objective would be having another account in CHF, funded directly in CHF, to invest in the CH market, without incurring in currency exchange. IB support confirmed that it is possible. Do you have any experience on this topic? If true, would also make sense to open another one in USD to invest in US market. What do you think?
Thanks
Claudio
Thanks for your kind words, Claudio!
There is really no need for multiple accounts in this case. You can fund your account in multiple currencies. For instance, my base currency is CHF, but I fund my account in CHF and USD and I do operations in CHF, EUR and USD without issues. The base currency only sets how the balances are displayed. They do not dictate what you can deposit and hold in your account. So, I would recommend using a single account and invest in what you want.
Thanks for your quick reply Baptiste.
Maybe I really missed how this system works :/ Being in CH, for statements and taxes purpose, i do agree that would be easier and straightforward to have as base currency CHF (btw, I read on Reddit that the currency of the statement IB provides depends on the tax residency, not on the chosen base currency – you might know better). Let me know if I did understand what you wrote: base currency CHF, funding in EUR and USD, I’ll see the equivalent in CHF (forex), since CHF is my base currency, and also the amount of EUR and USD I have available (funded). Therefore, in case I trade in US, IB will be using the USD I have available without applying any currency conversion CHF to USD. When I sell US stocks, I am going to see USD in my account. When I withdraw from the IB cash account, I can transfer the USD I have available to my USD account (e.g. Revolut), I used for the funding. Apologies for the word game. I could not find a better way to put it :)
Just hope that this topic would enlighten someone else too.
Cheers
I think that statements should be in your base currency, not in your tax residency currency.
Yes, what you said is correct. Base currency is simply the reporting currency, but not the account currency.
Hi there
Thanks a lot for this information!
If I take a margin loan, can I withdraw it? Or does it need to be re-invested in the portfolio?
Thanks, Phil
Hi Phil
Yes, you can withdraw a margin loan, no problem.
Thanks Baptiste!
How much money would you personally invest through them? Do you have all your savings there?
Cheers
We do have all our investments there indeed. I would invest anything with them currently. But we plan to have a secondary broker in the future.
Hi Baptiste,
A simple question to open a IB account, as a Spanish guy working with permit B in Switzerland , there is a checkbox :
“I have a different citizenship other than Switzerland.”
Should I click it and select Spain?
Thanks
Hi Juan,
If you still have a Spanish passport, then, yes, you should tick that box since you are resident in Switzerland, but not citizen of it.
But the wording of the question is weird since it seems to imply you have dual citizenship. Make sure you have not selected Swiss citizenship before.
Thanks Baptiste,
About this section:
“Treaty Benefits Qualifications”
I should select ->
“I certify that I am a resident of the country below within the meaning of the income tax treaty between the United States and that country.” and add ” Switzerland “.. right? Many thanks
Right, indeed :)
Hi Baptiste, thanks for all the information you share! I’m opening an account with IB to invest some o my savings on ETF’s and have a question:
I currently own around 40k in Swiss Re shares. These was held by the company broker while I was an employee but when I left I moved these to the bank :( How do I go about moving my shares rom UBS to IB? Is it possible? And if so, is it the best way to go about it? Thank you for the enlightement! :)
Hi,
You have two choices:
* You can sell everything and transfer the proceedings.
* You can transfer shares from one broker to another. There is a system in place that you can use. Once you have opened your IBKR account, you can find an action to do an incoming transfer of shares and then follow procedure. It’s not difficult but it may take a while.
Dear Baptiste,
could you please write an article or make a printscreen of all IBKR settings?
Especially the subcategory Trading and Reporting Settings would be interesting for me.
Also, how do you proceed when you want to create the tax report at the beginning of the year?
Or in what format do you submit your portfolio to the tax authorities?
Thank you very much in advance.
Best regards
Hi,
Except for the few points already outlined in this article (pricing system, W8BEN), I have not configured anything on my settings.
I have an article about taxes where I mention the kind of statement (annual activity statement). I will try to cover this more in-depth in the future.