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How to Open an Interactive Brokers Account in 2024?

Baptiste Wicht | Updated: |

(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 best broker
Interactive Brokers
5.0
No custody fees

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!

Pros:
  • Extremely affordable
  • Wide range of investing instruments
Invest your money Read My Review

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.

  1. IB offers access to U.S. ETFs to Swiss investors, while many brokers are not.
  2. IB has excellent prices.
  3. IB offers access to many investing instruments.
  4. IB offers foreign exchanges at an excellent price.
  5. IB has an excellent reputation.
  6. 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”.

Start opening an Interactive Brokers account
Start opening an Interactive Brokers 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.

Start filling up your Interactive Brokers account
Start filling up your Interactive Brokers account

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 need to 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 choose 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 choose questions from which the answer is not ambiguous (but not easy 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 need to 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. I would advise you to answer them with honesty.

You also need to set which instruments you need to invest in. For instance, if you want to invest in stocks and bonds, you must select these options. I only chose stocks.

Stocks, bonds, options, and futures are among many other choices. You must also select which country (stock market exchange) you want to invest in.

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 need 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 “Further Benefit to XXX” line! Otherwise, the money will not go directly to your account, and you must contact them to fix 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 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 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 IBRK 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:

Interactive Brokers Account Settings
Interactive Brokers Account Settings

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”.

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 best broker
Interactive Brokers
5.0
No custody fees

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!

Pros:
  • Extremely affordable
  • Wide range of investing instruments
Invest your money Read My Review

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?

The best financial services for your money!

Download this e-book and optimize your finances and save money by using the best financial services available in Switzerland!

Download The FREE e-book
Photo of Baptiste Wicht

Baptiste Wicht started thepoorswiss.com in 2017. He realized that he was falling into the trap of lifestyle inflation. He decided to cut 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.

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385 thoughts on “How to Open an Interactive Brokers Account in 2024?”

  1. Hello,

    Do you know how to transfer money from neon to Interactive Brokers? It seems like it’s not possible to transfer money to a company in the US even if they have a bank account in Switzerland.

      1. When you want to make a transaction to a CH IBAN you have to enter the adress of the receiver. The country of the receiver is chosen from a drop-down list. However, in that list there is no US as an option.

        I also contacted neon via email and I received this response:
        “Es ist leider im Moment nicht möglich über die neon App eine Inlandzahlung an einen US-Empfänger zu erfassen.”
        which basically means it’s not possible :(. That sucks but luckily I still have a second bank account.

      2. Hi Kristopher,

        Thanks a lot for sharing their answer. It does indeed sucks a lot! I was considering closing my Migros Bank account (can’t stand their apps…), but apparently, I will have to keep it.
        This is bad because it means that for IB investors, Neon is not a good bank.
        I will update the articles about Neon to reflect that issue.

        Thanks for stopping by!

  2. Dear Mr Poor Swiss
    Thank you very much for your excellent articles.
    What happens to your IB deposits if you lose your password, become incapacitated or die? How can one’ s wife or family members access one’ s IB deposits?

    1. If you lose your password, you can use the “forgot password” method to recover it normally.
      In case you become incapacitated, I have no idea what would happen.
      If you die, your spouse should be entitled to the money. Therefore, I would actually share the account with her. A joint account would be best for these cases.

  3. Hi Mr. The Poor Swiss
    Thanks a lot for this blog, it is very helpful. All these days I was e-Trading with PostFinance, I was on thoughts to move slowly to IB because of costs and I found all the information that I need here. and also a comparison chart in another blog from you. Very Great! I have question inline to what Donovan had asked regarding USD transfer to IB.

    Since I am already using PF I have USD and CHF. It is clear to transfer CHF and no fees any where. When it comes to USD transfer IB is giving only ABN. I just tried to transfer as a test an amount of 100$ and they(I believe JP Morgan Chase) charged 5$ and 95$ is credited at my IB. Can I directly use the IB’s CH IBAN and transfer USD from PF giving reference(Final Credit) to my IB account number ?(To avoid costs). Will it work to transfer like this even without generating wire Deposit instruction order at my IB ?(because if I choose USD the routing is different via JPMC). Last question , if I go in usual route by generating , will they (IB or JPMC) charge one time fee of 5$ per transfer or do they charge percentage based amount of value that I transfer ?

    Thank you for your time and feedback.
    Cheers,
    Rao

    1. Hi MSRao,

      I am really not sure you can transfer USD to the CH IBAN. With IB, you have to declare deposits in advance, so I am not an USD deposit would be matched on their CHF IBAN.
      I would contact IB to ask what is the best way to transfer USD to their accounts from a Swiss bank.

      Otherwise, you could consider TransferWise to do the conversion, but it will not be free.
      I do not see a free way for this transfer, unfortunately.

      Thanks for stopping by!

  4. Hi Mr.The Poor Swiss,

    Thanks a bunch for the blog! The perks of the internet still surprise me to this day and the will of people like you for sharing knowledge even more! ;)

    I’m an EU citizen with a C-permit in Switzerland and I wanting to move away from a savings account in postfinance. For tax purposes, I am considering investing 100k in one or two US domiciled ETFs through IB (e.g. VT/VOO).
    The thing is, I see it as a long term investment and I won’t be doing any other transactions as my life does not allow me being an active investor.
    That means, I wouldn’t pay fees in IB (since I would invest 100k) but I could eventually pay inactivity fees.

    1 – Is IB the best choice for this passive approach? Would it make more sense to simply invest in EU ETF with US securities, even if the taxes would not be optimized for CH?

    2 – Regarding inactivity fees, would TradeStation Global be a better option vs IB?

    Thank you!
    BR,
    Marco

    1. Hi Marco,

      I believe IB would be the best choice indeed. There are no inactivity fees with IB, only the custody fees that are waived at 100k.
      So, no, TradeStation Global would not be better than IB in my opinion.

      Thanks for stopping by!

  5. Same for me..”Currently we do not accept applications of this type from your jurisdiction.”
    May be it’s related to migration of accounts started after brexit. Will see.

    BR,
    Anton.

      1. I had the same problem/message while trying to create an account over the new year. It seems they fixed the problem and today, i.e., 4th January 2021, I could create a new account.

        BTW, your blog is great at least for foreigners like me living in Switzerland.

  6. Hello Mr PoorSwiss,
    IB can manage multiple currency cash accounts. I had some USD and transferred to IB. They deducted USD24 as bank fees which is quiet steep.
    Do you know if there is a way to minimise these fees if USD or any other currencies other than CHF is available in your portfolio?
    Thanks

    1. Hi Poor Ticinese,

      I have never tried transferring USD from Switzerland. The only time I transferred USD is from an American bank account and this was free.
      If you transfer USD in Switzerland, almost no transfer will be free.
      I do not think there is a way to transfer USD from a Swiss Bank account into their CH bank account.
      You could try going through TransferWise.

      Thanks for stopping by!

  7. I tried to open an individual account at IB and got the following message ‘Currently we do not accept applications of this type from your jurisdiction.’

    Do you know why this may be happening ?

    1. Hi Facundo,

      I have never seen that. From which country are you trying to create an account? European accounts are in the process of being migrated out of Interactive Brokers UK and into their European entities. This may be related.

      1. I can also confirm that :(

        I am trying to open an account from Switzerland and I got the same message.

        Pretty strange…

  8. Hi Mr Poor,

    I’m Swiss in switzerland. I opened an account on TDameritrade. Had to send money to US.
    Now I’m thinking of Interactive brokers.
    You mentioned they have swiss accounts? For me that is a big PLUS.
    But do you know any other differences with TDameritrade?

    – Any difference in taxes due to the account location?
    – Difference in costs per transaction? others fees?
    – speed of execution, quotes?
    – does the PDT also apply?

    I mostly do options and avoid dividends.

    Thanks you very much for the help to me and to others.

    1. Hi Renzo,

      I have never tried TDAmeritrade, so I do not know the exact differences. TDAmeritrade has some free transactions which IB has not.
      IB has a CH IBAN which I think TDAmeritrade has not.
      But I do not know about the other differences.

      Thanks for stopping by!

  9. Hi Mr Poor Swiss. I have just opened IB account using your referral link. Not sure how much they pay you for a new account opened via your referral, but I have gained knowledge about IB thanks to YOU, so I hope you get some small bonus for it. I hope my next 30 years will be positive journey :) But I already don’t understand something- for example, I check some stock prices and it shows me the price with C in the front – any idea what it is? Like Canadian dollar? Price is in USD, stock is US company in US exchange market (NYSE) but shows something like C50.10 where 50.10 is the price itself (not always, some stocks show no C in the front). I will need to learn all these things, really.

    1. Hi small_potato,

      Unfortunately, I only get something if you spend an absurd amount of fees in one year, so I hope I won’t get anything from you :)
      But thanks!

      It’s actually a good question. The C indicates that it’s the closing price. It’s the way they indicate that the market is closed for this stock. You do not have to worry about it. But it’s a bit weird, because it’s not always the same for all the stocks that are closed.

      Thanks for stopping by!

      1. oh, sorry to hear, I plan to buy big only after major crash and when prices are sweet :) At the moment most of the stocks are so expensive, there is market craziness galore and people buy like there is no tomrorow. SOrry to hear your bonus depends on the fees of recommended user. In any case, really appreciate your feedback, this is extremely positive thing you do!

        C before the price – I feel like I am retarded, really. Some stocks have it, some dont… I will be observing and learning. Thx again!

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