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Interactive Brokers offers several account types to cater to different trading needs. The primary account types include:
Cash Account: This account allows investors to buy and sell securities using only the cash available in the account. No borrowing is permitted, and trades settle in a standard three-day period.
Margin Account: This account allows investors to borrow funds from the broker to purchase more securities than they could with just their cash balance. It provides the ability to leverage investments, but it also increases risk as losses can be magnified.
Retirement Accounts: These include tax-advantaged accounts such as IRAs, which allow investors to save for retirement while enjoying tax benefits. Contributions may be tax-deductible, and investment gains can grow tax-free until withdrawal.
Institutional Accounts: Designed for larger investors or institutions, these accounts often come with tailored services and fee structures based on the investment size and strategy.
Opening an account with Interactive Brokers involves the following steps:
By following these steps, you can efficiently set up your trading account with Interactive Brokers and begin your investment journey.
Explore broker markets account types: forex/trading accounts with demo access.