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Everything You Need To Know About Interactive Brokers Minimum Deposit

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Interactive Brokers is a popular platform that is used for trading. Within this platform, there are quite a few minimum deposit options available for users to choose from. We have broken down what the actual minimum deposit amount is for Interactive Brokers, as well as information about the platform.

It is important to remember that Interactive Brokers does not have a minimum deposit number for most of its users. This is something to note as there are many other brokers that do have a minimum deposit requirement which can cause you some inconvenience.

But if you are just starting out with trading and only have a little capital, Interactive Brokers is definitely a choice you should consider using.

What Are Interactive Brokers?

Interactive Brokers, also known as IBKR, was founded in 1978 by Thomas Peterffy. As the company has grown, they have amassed around $8.1 billion in equity capital. Active traders consider Interactive Brokers to be one of their top choices.

While Interactive Brokers started with a more traditional approach and strategy, Thomas Peterffy discovered the first fully automatic algorithmic system for creating and submitting market orders. And by 1993, the company had become a fully-fledged E-trading platform!

The company houses its international headquarters in Greenwich, CT; overall, the operation covers about 135 markets, including Australia, Canada, China, Estonia, Hong Kong, Hungary, India, Luxembourg, Japan, Russia, Singapore, Switzerland, the United Kingdom, and the United States.

Changes to Deposits

Minimum deposits for Interactive Brokers used to be quite steep – probably the steepest in the industry. But in April 2019, Interactive Brokers did away with the $10,000 initial deposit required to use the platform.

Today, the minimum to use Interactive Brokers is $0 for a regular account and $2000 for a trading account. $2000 is about standard throughout the online trading industry.

Something to note is that prior to Interactive Brokers’ change, the company has not been enforcing account minimums, so it makes sense that they did away with them in 2019.

Deposit Fees

As mentioned, Interactive Brokers does not charge a deposit fee when any deposit is made into a trader’s account when using EFT, wire, and check deposits. If you are trading USD and CAD, you will more than likely be charged a 1% fee for actual cash deposits, and there is a minimum requirement of $50.00 for charges. Traders can use both Bank Wire Transfer and PayPal when making deposits into their accounts.

It is important to be aware that transactions made in currencies that are not supported may very well be subject to conversion rates. It is up to the trader to verify this with Interactive Traders before opening up an Interactive Brokers account.

Also, something to note is that a Mexican account will be charged a $100 fee for any wire transfer that is done.

What Currencies Can You Deposit

With Interactive Brokers, each trading account uses a base currency. This simply means that the company will hold your money in the base currency that it uses.

There are some companies that allow you to have more than one trading account that all use different base currencies. For example, some allow you to have both a USD and EUR-based account.

It is important to have this ability because, depending on the type of currency you are using, you may be charged a currency conversion fee. While this may not be a big deal, it is something you should take note of if you are dealing with different currencies within your accounts.

Most online brokers offer trading accounts in what is considered to be the major currencies like USD, GBP, and EUR, while others support many more than that, and you will not have to worry about conversion fees.

Interactive Brokers, for example, has a significantly larger pool of deposit currencies available (about 23). This is actually a great thing for traders who do not want to solely use USD. Why do Interactive Brokers have such a large pool? Well, they are an international broker, and they work with different clients from every part of the world to cash in on all currencies and not lose on conversion fees.

How To Send The Deposit

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There are three primary ways to deposit money to typical brokers: bank transfer, credit/debit card, and electronic wallets. Unfortunately, Interactive Brokers mainly accepts money via bank transfer (wire transfer).

US customers have the option to get Interactive Brokers debit cards, which can make deposits more convenient.
Additionally, Interactive Brokers also allows traders to deposit money from PayPal into their trading accounts.

Follow these steps to send the deposit:

Firstly, Open Your Broker Account.

You can do this easily online. Get ready your personal details, such as your birth date, and be prepared to complete a quick test about your financial literacy. Also, expect to verify your identity and where you live. Often, you will be asked to send them a copy of your ID and an official document that can act as proof of where you live.

Secondly, Make Your Deposit.

Now, sign in to your account and try to navigate the deposits section. Choose from one of the available deposit methods, then enter the amount you want to deposit.

Here is more information about each deposit method:

Bank transfer: If you want to do a bank transfer, you will have to add your bank account information to their system. Take note that it has to be a bank account that is in your name.

The system will provide you with a reference number that you will put down as an additional comment or note in your bank transaction. This is a crucial step so Interactive Brokers can identify who the deposit is coming from.

Credit cards and debit cards: With this method, be prepared to input your card details. Again, it has to be a card that is in your name. Sometimes, you may need to verify your credit or debit card by sending them a scanned copy of your actual card.

Do not worry about it, as this is simply an anti-money laundering protection measure that they take. Usually, people use their cards when they are just depositing a smaller amount. If you intend to deposit a bigger amount, use bank transfer instead.

Paypal and other online methods: This works just as if you are making a purchase online. The Paypal window will appear, and you will have to log in and complete the transaction.

Lastly, Review Your Deposit.

Look out for a confirmation email that they have received your deposit. This will take a couple to a few days, though, depending on which deposit method you used to transfer the funds.

Withdrawals

There are certain rules and policies regarding withdrawals, but withdrawing is relatively straightforward for the most part. A withdrawal limit of $50,000 per day is imposed for those who are not participating in Interactive Brokers’ secure login system.

As long as the withdrawal request is submitted before the day’s cut-off time, the user should expect their withdrawal to come through within the day. There may be times when withdrawal requests are subjected to review, thereby delaying the withdrawal. Most users report that withdrawing would either take a day or two most of the time. This is more or less comparable to other broker platforms.

Furthermore, withdrawing differs from depositing in that withdrawals charge a fee. Although users are permitted a free withdrawal per month, all other withdrawals afterward charge $10. One thing withdrawing shares with depositing is that withdrawing is also primarily achieved through bank transfers.

Frequently Asked Questions

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How Can a User Deposit Funds Into An Interactive Brokers Account?

Interactive Brokers mainly accepts deposits through bank/wire transfers. PayPal users can also deposit funds through PayPal.

Does Interactive Brokers Have a Minimum Deposit?

Interactive Brokers generally does not have a minimum deposit. However, there are certain accounts that might have minimum deposits.

Does Interactive Brokers Have a Deposit Fee?

Interactive Brokers generally does not charge when depositing. However, just like the minimum deposits, there are certain types of accounts that might charge for deposits.

How Long Does It Take to Deposit Money Into an Interactive Brokers Account?

Unless there is a reason for the delay (e.g., action subject to review, etc.), deposits are often available immediately.

Does Interactive Brokers Have a Withdrawal Fee?

The first withdrawal per month is always free. Then, Interactive Brokers charge $10 for each withdrawal after the first. Factors that might influence the withdrawal fee would be the size of the withdrawal amount and the type of trading account.

How Long Does It Take to Withdraw Money From an Interactive Brokers Account?

As long as the withdrawal request is submitted before the cut-off time, withdrawals can arrive within the day. Users would report that it may take a day or two.

How Can a User Withdraw Money From Their Interactive Brokers?

Just like for deposits, withdrawing is also primarily done through bank/wire transfers.

How Many Currencies Do Interactive Brokers Support?

Interactive Brokers supports a total of 23 currencies, including USD, AED, AUD, CAD, CHF, CNH, CZK, DKK, EUR, GBP, HKD, HUF, ILS, JPY, MXN, NOK, NZD, PLN, SAR, SEK, SGD, TRY, ZAR, and KRW.

Conclusion

All in all, the straightforward answer is that Interactive Brokers does not have a minimum deposit when you want to register a Cash Account. For traders who do not have a large budget, this is a great benefit since you can get started with any amount.