Interactive Brokers (IBKR) — Setup Guide for Australian Investors

How to setup an IBKR brokerage account and the advantages for Aussies

Below is a clear, practical setup guide for opening an Interactive Brokers (IBKR) account in Australia, starting with the benefits, then walking you step-by-step through the process. It’s written in a clean, client-friendly format suitable for sharing with investors.

Interactive Brokers (IBKR) — Setup Guide for Australian Investors

Why open an Interactive Brokers account?

Interactive Brokers (IBKR) is widely regarded as one of the world’s best brokerage platforms for active traders, options sellers, long-term investors, and international market access. Key benefits for Australian investors include:

Benefits of Using Interactive Brokers (IBKR)

1. Ultra-Low Brokerage Fees

  • Among the lowest trading fees available globally.
  • ASX brokerage often far cheaper than major bank brokers.
  • US options and equity fees are industry-leading for low cost.

2. Access to Global Markets

  • Trade on more than 150 markets across 33 countries.
  • Access US stocks, options, ETFs, European markets, Hong Kong, Singapore, futures, forex, and bonds.

3. Professional Grade Platform

  • IBKR offers Trader Workstation (TWS), IBKR GlobalTrader, and a strong web platform.
  • High-speed execution, advanced order types, risk tools, and real-time analytics.

4. Excellent for Options Selling & Multi-Leg Strategies

  • Ideal for covered calls, cash-secured puts, spreads, condors, wheels, and more.
  • Powerful margin simulation and risk tools.

5. Multi-Currency Accounts with Great Exchange Rates

  • Convert AUD ↔ USD (and many currencies) at extremely tight spreads.
  • Much cheaper than currency conversion through banks or typical brokers.

6. Very Strong Regulation & Safety

  • Regulated in Australia by ASIC.
  • Long standing global broker (est. 1977).
  • Member of SIPC (US protection for US-held assets).

7. Fractional Shares & Automated Dividend Reinvestment

  • Buy partial shares of expensive stocks (e.g., BRK.B, TSLA, NVDA).
  • Optional DRIP reinvestment.

How to Open an Interactive Brokers Account (Australia)

Step-by-Step Setup Guide

Step 1 — Go to the Australian Website

Visit interactivebrokers.com.au (or global site if redirected).
Click “Open Account”.

Select IBKR Pro unless you have a specific reason for IBKR Lite (Lite not available in all regions).

Step 2 — Create Your Login

You will create:

  • A username
  • A password
  • A default email address
  • A mobile phone number (for two-factor authentication)

This becomes your “IBKR Client Portal” login.

Step 3 — Verify Your Email & Identity

IBKR will send a verification link to your email.

You will then need to provide the following identity documents:

You must provide:

  • Australian driver licence or passport
  • Medicare card (sometimes requested)
  • Proof of address if licence does not match (e.g., utility bill)

IBKR uses secure online verification so upload is simple.

Step 4 — Complete the Application Forms

You will be asked for:

  • Personal details
  • Tax information
    • Australian TFN
    • FATCA/CRS declaration
  • Investment experience questions
    • Your experience with stocks, options, futures, etc.
    • These determine what products you are initially approved to trade.

Tip for Options Traders:

To sell options (cash-secured puts, covered calls, spreads), select intermediate/advanced experience for options and a moderate to high risk profile.

Step 5 — Choose Your Base Currency

For Australian residents, AUD is recommended as the base currency.

You can still convert to USD, HKD, EUR, etc., anytime at low FX rates.

Step 6 — Select Account Type

Most Australian investors choose:

  • Individual account (standard)
  • Joint account
  • SMSF account (if trading within a Self-Managed Super Fund)

The setup steps are the same, but SMSF/trusts require extra documentation.

Step 7 — Add Bank Account for Funding

You will link your Australian bank account to IBKR.

To deposit funds, you must first create a “Deposit Notification”:

  1. Log into Client Portal
  2. Go to Transfer & Pay
  3. Select Transfer Funds
  4. Under Deposit, choose Bank Transfer (EFT)
  5. IBKR provides their bank details and a deposit reference number

Then complete the transfer from your bank.

Funds usually arrive within 1–2 business days.

Step 8 — (Optional but recommended) Enable Two-Factor Authentication

IBKR requires two-factor authentication (IBKR Mobile App or SMS).
This greatly enhances account security.

Step 9 — (Optional) Download Trading Platforms

IBKR offers several tools:

Best for beginners

  • IBKR GlobalTrader App
  • Web Client Portal

Best for active/options traders

  • Trader Workstation (TWS) desktop platform — extremely powerful.

Step 10 — Currency Conversion (if trading US markets)

If you want to trade US stocks/options:

  1. Log into Client Portal
  2. Go to Menu → Trade → Convert Currency
  3. Convert AUD → USD at excellent rates

Conversion is instant.

Step 11 — Start Trading

Once funds arrive and product approvals are granted, you can trade:

  • ASX shares
  • US shares
  • US options
  • ETFs
  • Futures
  • FX
  • Bonds
  • And more

Common Tips for New Australian IBKR Users

1. Enable Tiered Pricing for Lower Brokerage

Tiered pricing often reduces fees for active traders.

2. Use the “FX Conversion” rather than “FX Trade”

This avoids unnecessary commissions for currency purchases.

3. If trading options, enable “Options Exercise & Assignment” alerts

Helps avoid unwanted assignments.

4. Use the Portfolio Analyst tool

Powerful portfolio analytics and tax reporting dashboard.

5. For SMSF users Turn on Dividend Withholding Tax reclaim to reduce unnecessary tax leakage.

Author: Steven Britnell from SBWealthCoach.com