Interactive Brokers Minimum Deposit

 

A Interactive Brokers Minimum Deposit review

 

Interactive Brokers Minimum Deposit

 

The Interactive Brokers minimum deposit amount that Interactive Brokers requires when opening a Cash Account (IBKR or PRO) is $0.

 

Interactive has a comprehensive offering and due to the various accounts, generally there is no minimum deposit amount but there are however some accounts that require a minimum deposit (Professional trader-tailored accounts), such as:

  • Margin: minimum deposit of $2,000 which is equivalent to ZAR35,176.60 at the current exchange rate between US Dollar and South African Rand on the day that this article was written.
  • S and non-U.S residents who have an account carried by IB LLC or IB UK and who are Pattern Day Traders will have to make a minimum deposit of $25,000 or currency equivalent of ZAR449,650 at the current exchange rate of $17.99/ZAR1.00
  • Portfolio Margin – minimum deposit of $110,000 or ZAR1,978,460.00 at the current exchange rate of $17.99/ZAR00

 

Interactive Brokers is based in Greenwich and the U.S, authorized and regulated by the strictest regulating entities namely US SEC & CFTC, ASIC, and FCA, and as a regulated broker, one of the requirements is that client funds be kept in segregated accounts.

In complying with this, amidst several other strict rules and regulations, all client funds must be kept separate from the broker account, and it can only be used by traders to conduct trading activities.

In addition to ensuring client fund security through segregated accounts, regulated brokers such as Interactive Brokers are required to be a member of a compensation scheme or fund which pays out a certain amount to eligible clients in the case of company insolvency.

 

Deposit fees and deposit methods

 

Interactive Brokers does not charge any fees when deposits are made into the trader’s account. Traders can use the following methods through which traders can deposit funds into their trading account:

  • Bank Wire Transfer
  • US Automated Clearing House (ACH) Transfer Initiated at Interactive Brokers
  • Cheques
  • Direct Debit/Electronic Money Transfer
  • Canadian Electronic Funds Transfer, or EFT
  • Single Euro Payment Area (SEPA)
  • BACS/GIRO/ACH, and more

 

There is no clear indication on the specific deposit currencies that Interactive Brokers supports, but it is safe to assume that most currencies such as USD, EUR, GBP, and CAD will be accepted.

Transactions in other currencies may be subjected to conversion rates, traders will need to verify this with Interactive Traders before opening an account.

 

There are, however, withdrawal currencies indicated which can be used depending on the payment method used when requesting a withdrawal, these include, but is not limited to:

  • USD
  • CAD
  • MXN
  • CHF
  • EUR
  • GBP, and several more

 

Step by step guide to deposit the minimum amount

 

Interactive Brokers does not require a minimum deposit when opening a live account, but should the trader wish to fund their account, they will either have to do it from their Client Portal, or by using the trading platform that they chose to use.

 

Pros and Cons

 

PROS CONS
1.      Deposit fees are not charged 1.      Deposit currencies not indicated specifically
2.      Variety of deposit methods

 

FAQ

 

What is the minimum deposit for Interactive Brokers?

Interactive brokers does not have a specified minimum deposit.

Professional accounts, however, have certain minimum deposits depending on the account that the professional trader opens.

 

How do I make a deposit and withdrawal with Interactive Brokers?

You can make use of the following payment methods to deposit or withdraw funds:

  • Bank Wire Transfer
  • US Automated Clearing House (ACH) Transfer Initiated at Interactive Brokers
  • Cheques
  • Direct Debit/Electronic Money Transfer
  • Canadian Electronic Funds Transfer, or EFT
  • Single Euro Payment Area (SEPA)
  • BACS/GIRO/ACH

 

Does Interactive Brokers charge withdrawal fees?

The first withdrawal is free, thereafter traders will be charged per withdrawal depending on the size of the withdrawal and the method of payment.

 

How long does it take to make a withdrawal?

  • Bank Wire Transfer – can take from a day to several days.
  • US Automated Clearing House (ACH) Transfer Initiated at Interactive Brokers – between one to two working days.
  • Cheques – between one to two business days.
  • Direct Debit/Electronic Money Transfer – can take from a day to several days.
  • Canadian Electronic Funds Transfer, or EFT – between one to two business days.
  • Single Euro Payment Area (SEPA) – between one to two business days.
  • BACS/GIRO/ACH – between one to two business days.