How to Open an Interactive Brokers Account in 2021?

Mr. The Poor Swiss | Updated: | Financial Independence, Investing
How to Open an Interactive Brokers Account?

(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 its unique range of offered investment products. 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 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

Best Broker for Swiss Investors
Interactive Brokers

Interactive Brokers is an outstanding broker, with extremely affordable fees! Trade U.S. security for as little as 0.5 USD!

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 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 was using 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. You also have the option of lending shares, and you will get some of the money from the lending. But, you have the choice, which is good!

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 reasons to prefer Interactive Brokers over other brokers.

  1. They offer access to U.S. ETFs to Swiss investors, while many brokers are not.
  2. They have excellent prices.
  3. They offer access to many investing instruments.
  4. They offer foreign exchanges at an excellent price.

For the story, I had a DEGIRO broker account before. But then, they cut access to U.S. ETFs even though it was not necessary. And they had very poor communication in the process. I found them to be very unprofessional in that matter. So I decided to switch to IB that still has this access and is much more professional.

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 sometimes receive money in USD, this is important for me to transfer USD without costs.

And talking about USD, IB is much cheaper than DEGIRO at converting between currencies. So, in the long term, I will save a lot of money with IB.

So, let’s 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.

First, you can go to the account creation page and Start Application for Individual, Joint, and Retirement Accounts. I needed an Individual account, but maybe you will need a 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 other accounts than the Individual.

On the first page, you will need to enter your email, a user name, and your 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 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 accounts to make sure you choose the one according to your needs. But 99% of people will want an Individual account.

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 addresses as well. Be aware that since this will be related to your taxes in the end, it is essential 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 types of accounts. You will need to select the account type you want. The primary type of account is a Cash account. A cash account is the account type you probably need. It means you need to have the money before each trade. There are also Margin accounts. Margin means you can use leverage for investing with money you do not have. Unless you know what you are doing, I highly recommend going for a Cash account.

Another thing you need to configure when you create an IB account is the base currency of your account. I make most of my payments in Swiss Francs (CHF), and I live in Switzerland. Therefore I went with 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 display in the interface. If you choose CHF, you can still transfer USD and buy shares in EUR, for instance.

If you transfer CHF, you will be warned about the negative interest rate on CHF balances. Currently, there is a negative interest only on balances higher than 100’000 CHF. You can get the actual 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. This procedure is, once again, a standard procedure. Make sure you choose questions from which the answer is not ambiguous (but not easy to find out)!

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 your objectives are for your investments. For instance, you may want to invest in appreciation of capital or for fixed income. All this information is here for regulatory reasons. I would advise you to answer them with honesty simply.

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

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, 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 interest 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. I did not agree with that. But that may be something I will 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 in information about your employer and your job occupation. Usually, you also need to submit something as proof of address. But for some reason, I was not able to complete this at this point when I created my account.

Fund your account

IB will fully activate your account once they receive funding.

You need to deposit the first amount of money 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 properly copy the IBAN. With banking transactions, you should always double-check all banking information before you do a transfer. Since they have a bank account in Switzerland, the transfer will be free!

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 (2FA). One excellent thing is that you have to use two-factor, you have no choice. It is great. 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 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 connections 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. 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.

Finalize your account

Now that you have access to your account, there are two more things to finalize in your account.

The first 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 make 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

The second thing applies if you are a Swiss investor and will invest in U.S. ETFs. In that case, you need to fill the W8-BEN form. That is fairly simple. You can go into your Account Settings. Then, you need to click the (i) blue button next to your name below Profiles. Then, you can click on “Update Tax Forms”. They will then take you to the process, and you will have the choice of filling the W8-BEN tax form. This will halve the dividend withholding from your American stocks and ETFs. This is very important if you want to profit from the great tax efficiency of U.S. ETFs.


Best Broker for Swiss Investors
Interactive Brokers

Interactive Brokers is an outstanding broker, with extremely affordable fees! Trade U.S. security for as little as 0.5 USD!

The procedure is now complete! If you followed this guide, you now have an Interactive Brokers account.

At least for now, 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 almost 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 fairly 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?

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.

180 thoughts on “How to Open an Interactive Brokers Account in 2021?”

  1. Hey Mr. Poor Swiss!

    A silly question, but I couldn’t really find an answer anywhere on the web. I would like to open an account on Interactive Brokers. I realized there are at least two domain names:

    Does it matter, where I open an account? (The jurisdiction changes?)


    1. Hi Chris,

      As a Swiss investor, you will have to use IB UK to create an account. I think you can’t even use COM and they would redirect you to UK (or another European entity).
      It does matter since the local rules will matter. But UK is the best for Swiss investors.

  2. Hi Mr TPS,

    I am an EU citizen currently resident in Switzerland and I would like to start investing on IB. Let’s say I invest for 5 years and then I move back to an EU country. Would that change my investment with them in any way? Would I need to liquidate? Or can I just keep adding money in EUR to it from my next country?


    1. Hi Riccardo,

      There is one thing that could change: You may lose access to US ETFs if you leave Switzerland for another country, for instance in the EU. In that case, you will not be able to buy more US ETFs And you will have to buy EU ETFs instead. But you should not be forced to liquidate, you just won’t be able to buy more.
      Other than that, you should be fine I believe, but I have not done that myself.

  3. Hi The Poor Swiss,

    Greetings from another Switzerland living FIRE/personal finance enthusiast!

    I’m planning on changing my main brokerage to IB from Degiro this week so I’ve been reading up on your various articles about them. (Also about buying the US domiciled funds, I’ve been buying the Irish ones till now).

    I was wondering though do you have a referral link with them for me to open my account with? It seems they have a good offer at the moment for referrer and referred(I’m not entirely sure whether that’s for US customers only though). Let me know if you do!

    While I’m here I’d just like to say thank you for all your great content, I’m so grateful for all the useful info I’ve gotten from this blog and I’m always entertained to follow your story. Keep up the good work!

    All the best!


    1. Hi Sean,

      I believe that’s a good choice!

      The link presented in this article (this one) is a referral link, but I do not remember what it gives to referee and it’s not great for me either. The other one is for friends and family I believe, so I can’t show it on this blog. But you can contact me if you want and I will give it to you, you can get some shares of IBKR.

  4. Hi Mr TPS,
    I just tried opening up an account on IB and while talking to the support they tell me that Swiss resident are having “IB-UK” accounts and that these accounts do not allow for “MiFID Retail” investors (e.g. private investors) to trade US ETFs.

    Apparently, as Swiss resident we are assigned automatically to IB-UK accounts and thus need a “MiFID Professional” categorization to trade US-based ETFs.

    How did you get around that?

    Thank you for your help!

    1. Hi Tim,

      That’s correct, Swiss investors work with IB-UK. And IB-UK does not allow MiFID retail investors to trade US ETFs.
      However, Swiss residents are not MiFID retail investors. This law does not currently apply to us since we are not part of the European Union.
      So, you should be fine :)

      1. Thanks for your prompt reply!

        Do you happen to know which categorization applies to Swiss resident then?

        I guess IB support is not aware of these subtleties as they assured be 3 times that I was not eligible to US ETF as Swiss resident *are* MiFID Retail investors.

        1. Hi Tim,

          We are subject to the FINSA regulations, but I do not think we have a special status on IB.
          The support is indeed pretty bad about mifid and Brexit. The problem is that they are trained well for Europe, but they think that Switzerland is inside the EU.

    1. Hi nathalie,

      IB has support for many OTC trades. You just need to go into your account and enable the necessary permissions.
      But I have no experience in OTC trading nor do I want any experience there.

  5. Hello Stephen,

    Very useful all your blog articles. A big thank you!
    Being a resident in Switzerland and not US citizen, is it possible to have an account in US brokers such as TDAmeritrade or ETrade?
    Any issue with Swiss Taxes?
    Thank you

    1. Hi Fabio

      (I am not Stephen)

      Some US brokers will accept you yes, but not all. I heard that some Swiss investors are using TDAmeritrade.
      I don’t think it makes a difference with Swiss taxes.
      IB is a U.S. Broker even though we mostly deal with the U.K. side.

  6. Hi Mr Swiss,
    Thanks for your blog.
    I created an account on IB and it was very fast.
    I want to fund it with CHF but they only send me a german IBAN at JP Morgan. They also send me the name of the correspondant swiss bank (UBS) but only with an account number but no IBAN.
    I asked the swiss IBAN throug private message and I was wondering how did you get it.

    Best regards

    1. HI Dan,

      At IB, CHF has a negative interest rate starting from a 50K balance. But USD does indeed have a positive interest rate. But I almost don’t keep any cash at IB, so I don’t really care about that. And it should be the same for most people.

      1. Oh! Seems like I might have misunderstood, then. Anyway, you’re right, if it’s only in there a day or less then it shouldn’t be a significant loss.

        Thanks for the blog, I appreciate it!

  7. Hi Mr. The Poor Swiss
    Greatly appreciate your excellent blog and advise.
    After trying to open an IB account I got a cumbersome request for documentation of „spousal income“, „source of your funding“, „source of your income“ etc. I am not comfortable to provide this information to a foreign entity and do not understand what purpose this information request has. To buy regularly ETF funds I have to give up tax information to a broker? Is this normal? Thanks for your reply. Orlando

    1. Hi Orlando,

      I don’t know how normal it is, but they indeed ask you many things of that sort. This is for regulations reasons so that they do not allow people to invest that should not invest which then could backfire to them.
      Now, if you do not trust them with this information, you should probably not trust them with your money either.
      I personally trust them with my money, so I do not mind giving them this information.

  8. Hi Mr TPS,
    Am new to investments and am trying to open an account with IB. It refused my Swiss ID as my family name was different (recently divorced and took back my name but my Swiss ID still has the old one). So I’ve just sent my British passport instead (wish has the correct name) since I couldn’t change the name on the account once done.
    But now am thinking…will I be able to invest as a Swiss investor or will I be regarded as a UK one?
    Another question: is there a minimum amount of deposit to transfer to IB when you open your account?

    1. Hi Nath,

      That’s a good question. I am not sure, but I would think that residency is what matters, so you should be fine as long as your address is in Switzerland. However, they may ask you for proof of residency.
      No, there is no minimum fortunately :)

      1. Hi,

        I may be having a similar issue. I am a Canadian in Switzerland (I sent proof of residency) and IB have given permission for only non US funds (so not Vanguard) which is why I signed up. Could that be for another reason other than non Swiss passport holders?


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