Now that you have got to know about Interactive Brokers (IBKR) and are ready to start, we have prepared a step by step guide that can help you get started. IBKR provides a pretty straightforward user experience, so we believe in little time you will be up and running with your investments!
How to open an account with IBKR?
First things first, head on to IBKR's page to open an account.
1) Fill in your details and make sure you choose the country where you are from (corresponds with your identity card), not where you reside. In this case let’s choose MALAYSIA. Click Create Account when you are ready.
2) You will receive an email from IBKR to confirm and verify your email shortly after.
3) After verifying, you can proceed to choose what kind of account that you want to create.
Individual
Joint account: Joint account is suitable for couples who want to manage the account jointly and have equal rights to access. However, take note that there might be some legal or tax implications that you need to be aware of.
4) Next, fill in all the required personal details in the form.
Tip : It's good to fill in your Tax Identification Number if you already have it. You can get it from Borang B or Borang BE of your Cukai Pendapatan.
5) After that, IBKR will prompt you to configure your account. Now is the time to choose between 3 types of investment : Cash, Margin or Portfolio Margin.
Tip: We strongly recommend you to set up a Cash account as a beginner as this comes with the least risk. Plus you can always change it later once you get more experience.
6) IBKR will also ask you about your Trading Experience in order for them to gauge your knowledge and grant you certain features based on your experience. Just key in your relevant information as you go along. For Malaysians, we are not qualified for the US Treaty Benefits Qualifications so be sure to check the box.
7) Then, go through the certification details, click Yes to agree with the T&C and you will be directed to sign it off electronically.
8) Now that this part is done, you will be directed to the e-KYC process. This is where you need to submit proof to verify your identity (for Malaysians it is the IC) and take a selfie.
9) Once submitted, the system will start verifying you and your documents, and prompt you to wait a while. If all is clear, you will get a notification that your application is now in process.
10) You will receive an email from IBKR stating that your application has been approved. From this point you can now login to the platform and start funding your investment. It usually takes less than 24 hours to be approved, on average.
How to fund your IKBR account?
Although IBKR does not allow MYR as a base currency to fund your investments, there are a few options for Malaysian investors to do so. First, click on the “Transfer & Pay” button on the upper screen, then you will find the “Transfer Funds” button. Select “Deposit Funds”.
Here are the options for fund your account:
Use a Bank transfer
Use Foreign Telegraphic Transfer (TT) service from your local account in MYR to IBKR’s international account. Note that your bank will charge a fee for this currency conversion and the wiring transaction so it's good to check with your bank beforehand. Also, it will take a few days to appear in your IBKR account.
Use Wise transfer
If you have a Wise account, you can use it to transfer money into your funds using the currency of your choice in IBKR. Wise is known to have competitive rates and is a good option to fund your account.
First and foremost, you need to link your Wise account to your IBKR account. Once it is linked to IBKR, you can see your balances in Wise instantly within IBKR site. From there, you can choose to transfer money from Wise to IBKR, using one of these 2 methods:
Transfer from Wise Balance
Bank transfer via Wise
Wise will do the necessary conversion into your target currency. They will handle all the fees, including whatever fees charged by IBKR.
Once you have successfully funded your account, it's time to place orders and begin your first trade.
Navigating the platform
You will see a big dashboard once your account is verified and approved and you login to the homepage. From here you can start exploring your options for your first trade or investment.
Conclusion
That’s it! We hope this guide serves as a good guide for you to venture into IBKR and make the most out of your investments. Don’t forget that IBKR itself has a tonne of resources for learning, so make sure to leverage on it to broaden your experience and maximise returns from investing.