How e-Residents can open an Interactive Brokers account for their Estonian business
This post about opening an Interactive brokers (IBKR) account for businesses is a guest post by our partner Thomas Heyden from Systrade AG, one of the leading Introducing Brokers of IBKR and a specialist in brokerage and asset management for companies and individuals. Contact Systrade AG here.
More and more international companies are opening a business accounts with Interactive Brokers (IBKR) and taking advantage of the digital capabilities of one of the world’s financially strongest investment houses.
A strong equity base, conservative balance sheet structure and automated professional risk management protect Interactive Brokers clients and investors.
E-residents have the opportunity to invest their capital internationally and engage in professional cash management through IBKR. Hedging, investing and foreign exchange transactions are thus possible at low cost and quickly, regardless of location. Due to its 100% digital approach, IBKR is one of the best solutions for e-Residents looking for a brokerage account for their business.
What are the advantages for companies?
1) Worldwide access to all major stock exchanges.
2) Comprehensive reporting and evaluation functions
3) Credit lines for trading transactions
4) Trading technology geared towards traders and investors
5.) Investor education via the Trader Academy (online)
Admittedly, the opening process for a corporate account is a bit more extensive than for a personal account. This is also true for IBKR but should not deter you from taking advantage of IBKR.
Silva Hunt has done a webinar with Thomas Heyden about the benefits of IBKR, watch to go more in-depth.
The following guidelines should help to make the opening process as quick and uncomplicated as possible.
Please keep in mind that the authorized person of the account might differ from the account holder especially if the company name is different from founders name.
In advance, have all the documents of the persons who are authorized to access the account for the company ready for uploading and you are ready to go.
What is required?
1) Proof of identity of the authorized person of the account
Copy of current passport, ID card or driving license.
In case of residence abroad (outside of EU?), the valid residence permit is needed.
2) Proof of residence/address of the authorized person of the account
The document must clearly state the name and address of the account beneficiary, including:
a. Credit card statement from a bank
b. Bank statement
c. Current insurance policy
d. Letter from a government agency proving current address (not older than 12 months)
e. Current tax certificate from the tax office
3) Other information
a. Extract from the commercial register
b. Proof of address of the company (see 2.)
c. Information where the initial capital of the account comes from
d. Information on the assets and income of the company or the responsible persons
e. Investment objectives and trading experience
f. Account number and bank details of the reference bank
4) Final questions
a. Which markets and therefore trading permissions should be applied for?
b. What commission structure is optimal for the company?
This information is requested by all banks and is a requirement of the supervisory authorities in order to get a realistic picture of the account holder and to avoid money laundering.
In the case of e-residents, the reasons why the entrepreneur’s place of residence and the company’s registered office may differ are also asked. Reasons for this may be the international orientation of the company, the international clientele, the efficient digital possibility of setting up and running a company in Estonia for example.
If you haven´t opened a company yet in Estonia to apply for a an IBKR account Silva Hunt can help you with that. Silva Hunt will take care of your accounting, provide a legal or tax advice and legal address & contact person service. To get started with us write firstname.lastname@example.org .
Once you have your company set up, we will appoint you to Systrade AG who will help you with the IBKR account opening. Systrade AG is one of the largest cooperation partners for IBKR in the field of corporate, professional and institutional business in the EU. If you have any further questions, don’t hesitate to ask Thomas from Systrade AG.