How to Open an Interactive Brokers Account | Beginner's Guide

hey what is up you lovely people so glad to see all of your smalling faces so you have heard about interactive brokers and you want to open an account with the best online broker right now and guess what you're in luck because in this video i will show you everything about interactive brokers so that you can start your journey right now with them such as which interactive brokers to choose is it the interactive brokers hong kong singapore australia uk us which one should you choose next i will show you the steps to register for an account how to find your account how to request for trading permissions and lastly compare the tiered versus the fixed pricing structure so that you know which one is best for you there is a lot to cover in this video so feel free to skip according to the timestamps down below and without further ado let's jump right to today's content so as some of you might have noticed there is a few interactive brokers out there we have interactive brokers us uk singapore australia hong kong canada and so many more and in case you haven't paid enough attention the main difference here is that we have a lady ambassador in the interactive brokers uk as opposed to the guy in the interactive broker singapore so it is up to you whether you prefer a lady or a man okay on a serious note the main difference here is in the insurance coverage and compensation in the event of insolvency this is because the interactive brokers is a behemoth that consists of various interactive broker subsidiaries across various countries and it would be impossible for any of their subsidiaries to be cross-regulated by every government so for example interactive brokers uk is licensed and regulated by the fca of uk and their insurance coverage is carried by the uk fscs which is a uk compensation scheme what about interactive brokers us it is regulated by finra and covered by sipc and so on and so forth for the other broker and there will be slight differences between their financial product offerings like some other interactive brokers doesn't offer a particular regions etfs or mutual funds and whatnot but all in all their differences are pretty minor and i would say that you wouldn't go wrong with any of them because ultimately they are all under the same parent if you're wondering which one i chose well i delink from tradestation global uk so my interactive brokers is a uk one but regardless i believe it doesn't really affect the customer support because i've been served by the us branch before so if you still can't choose feel free to use my interactive broker's referral link down below i believe it will redirect you to the relevant ib cara for your country or region but otherwise feel free to read the fine print of the legal disclosures now i will show you how to register for an interactive broker's account let's proceed to create a username and password you should know the drill please write down all of this information because you will need it to log in your account in the future for region since i am from malaysia i will choose malaysia but feel free to choose your country then click create account they will ask you to check your email so jump into your email inbox and click on the verification link you will land on this page asking you to log in so that you can complete a starter application login and you will be prompted to select an account type if you are opening an account for yourself select individual scroll downwards and choose your legal residence which is the state or province you are living in for me it will be slango a state in malaysia okay page one about you for your first name middle name and last name if you are not sure you can follow this reference as a general guideline address city state postal code should be pretty self-explanatory for the three boxes i just leave it empty phone type mobile for your phone number if you are from malaysia fill in according to this convention no need to add the country code in front of it since you already choose your country then scroll downwards to personal information debt of birth marital status number of dependents means how many kids you have tax residency country which is your country tax identification number this is your income tax number for malaysians it will be a number to keep in that button found on your borang b or borang be tax form that can be downloaded from the lhdn website it should be something like sg followed by 11 digit number if you are a student or you are not paying income tax then you can untick the box below it will ask you to choose what is the reason to be honest none of them really matters because malaysia does not have tax treaty with the us so there is no tax benefit that you are losing but if your country is listed here then you might want to reconsider your choice anyways for most of us since we are paying tax i highly encourage you to put in your tax identification number just to save the hassle in the future then we look at identification you should know what to do here i will just fill in my nric further down we will have employment details for employment status choose employed and for the question below choose no filling your employment details should be pretty simple going down we have source of wealth just take income from employment or whichever applies security questions you will have to set up the three questions with three answers please remember to write this down this is crucial for your future reference ib cara will need this for verification purpose failure to do so you will be denied access to a lot of requests when you are done let's move on to page 2 configure your trading account for account type choose cash if you have no idea what they mean i won't recommend you to open a margin account if you don't know what you are doing basically margin allows you to take a loan or margin as we call it at a margin interest rate of around 1.5 percent so you can actually trade way above the amount that you have deposited in your account but it is also equally as dangerous if you don't know how to control it so just avoid it for now you can always change it later and in case you are wondering and you are an active trader interactive brokers does offer the lowest margin financing rate in the industry starting from 1.5 onwards anyways you can always upgrade your account to margin later so for now just start with cash account which is what i'm using income and worth fill in accordingly just make sure your net worth is more than your liquid net worth if not you can just copy the way i fill it no one will check the number so it is okay to simply choose one here for investment objectives just choose growth if you want to deal with stocks and etfs only the remaining boxes will affect your permission to trade financial derivatives like options and futures but you can always request for that later trading experience and permissions and the stocks you can follow the way i choose here again no one will check your experience my recommendation is to not let them know that you have no experience else there will be a lot of restrictions and limitations you can also add more countries with this button if you want london stock exchange choose united kingdom and some other markets like hong kong or singapore it is up to you you can request for it later as well moving down we have regulatory information just choose no for both questions stock yield enhancement program only tick this if you want to participate in short selling and loaning your stocks if you don't know what it means just leave it for now you can always change it later how did you hear about us simply choose any then click continue now they will ask you to confirm your tax residence go through all of your information once again for treaty benefits qualification again depending on your country if it's here then choose it since i am from malaysia i will just tick the box off i do not qualify for it certification just choose yes for both of them at the bottom sign the form by retyping the accepted signature then click continue now page 3 reveal and sign agreements nothing much to do here scroll downwards tick all of the agreements sign at the bottom then click continue this little box will pop up saying we are setting up your account wait for a moment and it might stop and say sorry we need more information to set up your account just click continue application we will land on this application status page now you can always revisit this page so feel free to log off or close this step anytime you want so for the first one find your account i will talk about it later submit a photo id you can click upload document this box will pop up and you can choose to upload any of the documents i chose national id and i can scan the qr code on my mobile phone you will have this document scanner just scan your ic front and back then click upload once you are done you will receive this thank you message then you can go back to your desktop it will show your document has been received then it will review your documents in real time give it a few minutes if it shows error message then just re-upload the document if not you can always contact interactive brokers to assist you manually over email so at the bottom submit a document to verify your residential address this can be any of your document that has your address similar to your id or ic as we call it so the simplest one will be your bank e statement just log into a bank portal and download your bank statement upload it then that is all you have to do up until this point so now the only thing left for you to do is to find your account and you can always choose to find it later after you got your approval which might take days or weeks but surprisingly it took me about three days before i got my ib hair approval even before i found the account okay for funding method i actually have dedicated videos to show you the best way you can find your interactive broker's account so if you're from malaysia or singapore go for this video on the left hand side for the cheapest way to fund your ib care account but if you are from any other countries feel free to go for this video on the right hand side trust me these two videos are all you need to find your interactive brokers account and if you are interested in the ways to withdraw from your account i have this video just for you so feel free to check them out in my channel should be applicable to any international audience as well and if you still have any issues finding an account or you have any questions in your mind feel free to comment down below or dm me via instagram i will always be happy to help you out okay moving on once you've got your account approved and funded you can now start logging into your interactive broker's account because you will want to request for a few trading permissions the first one will be fractional shares trading at the top search bar just type fractions then select the option of trade infractions you will land on this page asking you to review trading permission and experience changes scroll downwards and type in the signature accordingly then click continue they will say your request to change trading permission has been submitted that's all you have to do for fractional shares trading you should get your approval within 24 hours now the second trading permission that you want to request for is for your financial markets again jump back to your home page at the top search bar type in permission then choose the first option request trading permissions this is the page where you add the markets and the products that you want to trade i will just show you with stocks you can do the same with other products for now as you can see i have hong kong singapore united kingdom united states and united states trade infractions if you want to add more just click the little add button feel free to tick any markets that you want then click save when you are done just scroll downwards and click continue it will ask you to review trading permission just click continue and that is all you have to do in terms of trading permissions alright the last thing on today's menu will be something that you all have been requesting me to cover which is interactive brokers pricing structure and in case you don't know already interactive brokers offers two different tiers of pricing structure fixed and tiered and i'm not gonna lie if you read it on your website it is very confusing so i will try my very best to simplify it for you to illustrate this every time you place a trade you have to pay a fee which will be a sum of commission fee plus some other small fees such as exchange fees regulatory fees and clearing fees and with the tiered pricing structure you will need to pay all of the fees so if your trade volume increases it can get very expensive however with the fixed pricing structure you only have to pay commission fee the remaining fees will be absorbed by interactive brokers on your behalf which makes it cheaper overall if you trade at a very high volume here is a snapshot of their comparison in terms of fee per share it is definitely cheaper on the tiered structure to illustrate this better look at the second row minimum per order it should be clearer now that it is much cheaper on the tier side with 35 cents minimum as opposed to the one dollar minimum per trade on fix but that changes when you look at the last three rows if you are on the tiered pricing structure you have to separately pay exchange fees regulatory fees and clearing fees however if you are on the fixed pricing structure interactive brokers will absorb those miscellaneous fees for you so let's cut the crap i believe the burning question that you have for me is z so which is the cheaper option well as much as i hate to say it it really depends to put it in layman's term if you are trading in low volume like for example 5 apple shares or 10 tesla shares or 20 facebook shares then go for the tiered pricing structure however if you are trading in larger volume for example penny stocks or 1000 facebook shares or few thousand dollars worth of etfs then go for the fixed pricing structure now i can already picture your very confused face so let's pull up some numbers and comparisons i found this very useful spreadsheet created by a reddit member where he documents all of his trades and the fees involved as you can see his trades of what he bought and what he sold he was trading apple amazon facebook and oracle stocks in the region of few thousand dollars per trade on the right hand side you can see that for most of the time the tiered structure is the cheaper option by quite a huge margin and the only time the fixed structure is cheaper is when he bought high volume of shares in the regions of few hundred shares of oracle and if you want to have a look at the data yourself i will leave the link to the reddit trade at the description box below for you and if you are still not convinced i believe this reddit member pretty much sums it up go tiered unless you will make more money trading like in hundreds thousands and buy a lot of shares like in thousands then fix at the end of the day there are too many moving variables so it is best for you to experiment yourself and find which one suits you better so for the time being since i am not an active trader and i just buy a few shares here and there i will go for the tiered pricing structure so here is a quick little guide to change your interactive broker's account pricing structure in your interactive broker's homepage at the top search bar type pricing and select interactive brokers pricing plan this is where you can choose the plan you want by default your interactive broker's pricing plan is in fixed structure so for me since i trade in low volume i will go for tiered then click continue and you should receive this message usually it will take one business day for it to take effect so i've pretty much covered all the basics that you will need to get your account up and running and i will also be uploading a video on how to use the interactive broker's web portal and tutorials and whatnot so remember to subscribe and hit the notification bell below so that you don't miss it in the meantime you can refer to my interactive broker's mobile app tutorial which i've made previously and it is almost similar to the interactive broker's web portal so it should help you to understand the basics of buy and sell and converting currencies and whatnot alright i hope you find this video helpful a little like will be very much appreciated and with that said thank you very much for watching stay safe stay invested and as usual i will see you in the next one [Music] you

Channel: Ziet Invests

Views: 31,648

Keywords: best stock broker malaysia, how to fund ibkr, how to open ibkr account, ibkr, ibkr beginner, ibkr deposit funds, ibkr fee, ibkr fixed fees, ibkr fixed vs tiered, ibkr mobile, ibkr pricing structure, ibkr pro, ibkr review, ibkr tiered fees, ibkr trading platform, ibkr tutorial, interactive brokers, interactive brokers malaysia, interactive brokers review, interactive brokers review 2021, interactive brokers tutorial, tradestation global, tsg ibkr, ziet, ziet invest

Id: f__HgJRe3nU

Length: 15min 10sec (910 seconds)

Published: Fri Jul 23 2021