In a previous article we taught you how to open an account in Interactive Brokers. The process of opening an account, although it may seem long or complicated, is actually very simple. That’s why today, we’ll show you some common questions related to frequent issues when opening an IBKR account that we aim to answer.
How long does it take to open an IKBR account?
On the one hand, it should take around 20 minutes of your time to fulfill the application with all your personal information required and account setup.
On the other hand, it usually takes 3 business days for the Interactive Brokers team to approve your application – if not, they will contact you to share what went wrong and why they are rejecting it.
It may take longer than expected if you submit blurry or incomplete documents, provide an address that doesn’t match your ID or miss required tax information (such as a TIN for U.S. taxpayers). So make sure you are accurate with the information you upload.
Note that you can always fund your application to prioritize its review. And if for any reason your application is not approved, the funds will be returned.
Why is it important to fund your account?
By funding your account, you are putting money in the broker. It enables access to trading and gets you ready to invest and generate profits. The initial deposit acts as the foundation of your trading activities and is necessary to begin using the platform.
Without funding, your IBKR account remains inactive, and you won’t be able to execute trades or invest in the various financial instruments. You may also find limited features or no trading data.
How do you know the funds are credited to your account?
The date funds will be credited to your account depending on the method of funds transfer you use. To check the latest status of your deposit you may choose any of the following.
- Check the Deposit Status.
- Check the Message Center for a confirmation message that is generated when a deposit is processed.
- Click the Transaction Status & History link at the bottom of the Client Portal home page.
- View a recent Activity Statement for details on when your deposit will be available for trading.
Why can your application get rejected?
Interactive Brokers (IBKR) can reject account applications for several reasons, often tied to the applicant’s failure to meet certain eligibility criteria or incomplete application processes. Here are some common issues:
- Incomplete or Incorrect Information: Applications with missing or incorrect details -such as errors in personal identification or address documentation- may be delayed or rejected. It’s crucial to ensure all required fields are filled out accurately and supported by valid documentation.
- Failure to Meet Eligibility Requirements: Interactive Brokers has specific eligibility criteria depending on the account type and applicant’s country of residence. These may include minimum net worth, income requirements, or trading experience. Applicants who don’t meet these thresholds, particularly for professional or margin accounts, are likely to face rejection.
- Issues with Documentation: If the applicant fails to provide acceptable proof of identity, address, or bank account information, the application can be delayed or denied. Similarly, discrepancies between submitted documents and the application details can lead to rejection.
- Regulatory Restrictions: Some countries impose restrictions on accessing international brokerage services like IBKR. If regulatory compliance requirements aren’t met, the account may not be approved.
To avoid these issues, applicants should carefully review IBKR’s requirements, double-check the accuracy of their application, and promptly respond to any follow-up requests for additional information or clarification.
Are there residency restrictions?
Yes. While IBKR operates globally, certain countries may impose restrictions or additional requirements based on local regulations. Applicants from countries with strict financial compliance laws might face delays or additional documentation requests.
If Interactive Brokers doesn’t work in your country, don’t worry, you still can invest in reliable brokers: check our previous article about the Top Biggest Brokers for each Country.
Problems with the fiscal number or TIN
TIN means tax identification number, and it is a unique identifier assigned to individuals and entities for tax purposes.
You may find some issues related to the following aspects:
- Invalid TIN Information: typographical errors, invalid TIN formats or mismatch with official records (remember that The TIN provided must match the records held by the relevant tax authority).
- Missing TIN: Applicants that are minors or non-taxpayers in their home country might not have a TIN, also, certain jurisdictions issue temporary TINs, which might not be accepted by IBKR as valid identification.
- International Tax Residency: Applicants with tax residency in multiple countries might be required to provide all relevant TINs. If a user is residing outside their home country, providing a TIN from a different jurisdiction might not align with their stated residency.
- FATCA/CRS Compliance Issues: On the one hand, FATCA (Foreign Account Tax Compliance Act) is a U.S. regulation aimed at preventing tax evasion by U.S. taxpayers holding financial assets outside the country, so for U.S. citizens or residents, failure to provide a valid Social Security Number (SSN) instead of a TIN may lead to compliance issues. On the other hand, CRS (Common Reporting Standard) is an international framework for the automatic exchange of tax information between countries, so non-U.S. residents need to provide accurate TINs to comply with international tax reporting regulations.
Tax forms
During the account-opening process, IBKR will ask for your tax status. Based on your residency and citizenship, you will be prompted to complete the W-8BEN or W-9 form electronically.
- The W-8BEN form certifies that you are not a U.S. citizen or resident for tax purposes, and it prevents unnecessary withholding tax on income that might apply to U.S. based investments. If incomplete or not submitted, IBKR may apply the default withholding tax rate of 30% to applicable U.S.-source income, even if you’re eligible for a reduced rate.
- The W-9 form is required for U.S. residents or citizens, and it provides IBKR with your Taxpayer Identification Number (TIN), such as your Social Security Number (SSN) or Employer Identification Number (EIN). Failing to submit this form may result in the account being flagged, and the IRS may impose backup withholding on income (currently at 24%).
How to make a transfer within the USA to Interactive Brokers?
- From the Client Portal go to the Transfer & Funds section and select Transfer Funds
- Choose the deposit type and the option Bank Wire (US) for transfers within the United States
- IBKR will provide the necessary banking details: name of the receiving bank, routing number (might be ACH or ABA indifferently), IBKR’s account number and your unique reference code (essential to identify your transfer)
- Make the transfer from your bank account with the provided details – make sure you include the unique reference code in the notes or description field
- Check the transfer status from the IKBR Transaction History section. Note that domestic transfers within the USA usually process within 1-2 business days.
How to deposit EUR to Interactive Brokers?
IBKR`s bank account for EUR is eligible to receive EUR transfers either via SEPA or International Bank Transfer (SWIFT).
They will provide you with our IBAN (International Bank Account Number) and the SWIFT code of their bank account upon completing the deposit notification in Client Portal.
If your bank is located within the EU (and certain other countries) you will likely use the SEPA transfer method. Otherwise, you will need to use International Bank Transfer (SWIFT) method instead.
How to transfer funds out of IBKR?
- Log into Client Portal
- Select Transfer & Pay followed by Transfer Funds
- Click Make a Withdrawal
- Select an instruction from the Saved Withdrawal Information section, or select the Currency from the currency list to see eligible methods
- Click Use this Method next to your desired method and complete the subsequent screens to complete your request.
Are there requirements in order to qualify for trading permissions?
Yes. The trading permissions request can take 24 to 48 hours for approval. However, in order to be approved, your financial profile (e.g. age, liquid net worth, investment objectives, product knowledge and prior trading experience) must meet IKBR qualifications.
How to update your financial profile?
- Log into Client Portal
- Click on the User menu (head and shoulders icon in the top right corner) followed by Settings
- Under Account Settings find the Account Profile section
- Click on Financial Information, rectify your information and confirm.
Where to get help?
If you are having troubles with the process, you can always ask for guidance from the IKBR team or from us, Boring Investment team.
Here are some useful links:
- IKBR general support customer service: https://www.interactivebrokers.com/es/support/customer-service.php
- Contact to have a personalized call with someone from the IKBR team (check the section “phone” to have access to a list of phone numbers): https://www.interactivebrokers.com/es/support/customer-service.php?p=contact
- You can find your question already responded in the common questions section: https://www.interactivebrokers.com/en/general/contact/ibot-container.php
- Boring Investment email: info@theboringinvest.com
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