IB broker Accounts

Interactive Brokers Account Type

Interactive Brokers (IBKR) offers a variety of account types to meet the diverse needs of traders and investors. Here are the main types of accounts available:

1. Individual Account: Owned by a single person, this account allows full access to all functions and can utilize cash, Reg T, and portfolio margin.
2. Joint Account: Owned by two individuals, this account can be structured as tenants with rights of survivorship, tenancy in common, or community property. Both account holders have access to all functions.
3. Trust Account: A legally established entity where assets are held by one party for the benefit of another. Managed by a trustee, this account also utilizes cash, Reg T, and portfolio margin.
4. IRA Account: An individual retirement account available only to U.S. tax residents. It is similar to an individual account but with specific tax advantages.
5. UGMA/UTMA Account: Managed by a custodian for a minor until they reach a specific age. This account is available only to U.S. residents and operates as a cash account without margin.
6. Family Office Account: A master account linked to multiple client accounts, allowing family office managers to access some or all accounts or functions.
7. Advisor Accounts: For registered advisors managing client administration and funds, with a master account linked to individual client accounts for fee collection and trade allocations.
8. Money Manager Accounts: A separate client account opened for clients whose money is managed by a money manager, with margin inherited from the wealth manager's account.
9. Broker & FCM Accounts: Designed for registered brokers or futures commission merchants, allowing for marketing and advice to clients.
10. Proprietary Trading Group Accounts: For corporations or partnerships, these accounts can hold assets owned by the entity and can have multiple linked accounts.

Interactive Brokers Broker Account Opening Process

Opening an account with Interactive Brokers involves several steps:

1. Start the Application: Click on the "Open Account" button on the IBKR website.
2. Create an Account: Enter your email, create a username and password, and verify your email address.
3. Personal Information: Fill out your personal details, including your name, address, and employment information.
4. Choose Account Type: Select the type of account you wish to open (e.g., individual, joint, IRA).
5. Regulatory Information: Answer questions related to your financial background and investment objectives.
6. Funding the Account: After your application is approved, fund your account. The minimum deposit varies by account type; for example, it is generally $10,000 for individual accounts.
7. Identity Verification: Upload necessary documents for identity verification, such as a government-issued ID and proof of address.
8. Complete Setup: Once your account is approved, you can log in, set up security features, and start trading.